FY2019/3 Results
Explanatory Materials

Oisix
2019.5.21

Table of Contents

1. FY3/2019 Achievements

2. Future Growth Strategy
3. FY3/2020 Outlook
4. Social Activities
5. APPENDIX・DATA SHEET

1

1. FY3/2019 Achievements

2

Highlights

Sales

64.02bn yen※1(YoY +60.1％)
Operating
Profit3.15bn yen

EBITDA

2.31bn yen

Attributable toowners of theparent(YoY +159.4％)(YoY +88.8％)

2.38bn yen(YoY +906.4％)

Home Delivery Business
Oisix

DWMK

Sales

Sales

29.61bn yen(YoY +19.4％)

10.90bn yen(YoY -2.8％)

Marginal profit

Marginal profit(YoY +22.7％)(YoY -5.1％)

4.03bn yen※2

1.98bn yen

Radish Boya
Sales

18.02bn yen

Other Business
※2

Sales

5.79bn yen(YoY ー ％)(YoY +36.3％)

Marginal profit

Marginal profit(YoY ー ％)(YoY -4.7％)

3.34bn yen

0.72bn 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)

Excluding extraordinary factors of the FY2019/3
Details are described on P7

Highlights(Excluding extraordinary factors)

Sales

Operating
Profit62.43bn yen
2.24bn yen

3.08bn yen

EBITDA※1

Net income
Attributable toowners of theparentHome Delivery Business
Oisix

DWMK

Radish Boya

Sales

Sales

Sales

29.61bn yen
Marginal profit

4.03bn yen

10.90bn yen
Marginal profit ※2

1.98bn yen

16.51bn yen
Marginal profit

0.11bn yen

About

3.09bn yen

Other BusinessSales

5.70bn yen
Marginal profit ※2

0.72bn yen

4※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)

Consolidated Results Overview
Thanks to growth in the Oisix business and management integration
with Radish Boya, Sales, Operating Profit and EBITDA set new record highs
Sales

EBITDA

62.43

bn yenOperating Profit

3.08

64.02

FY
2019/3

1.67
0.98

FY
2016/30.99

FY
FY
2017/3 2018/3

FY
2019/3

2.31

0.77

FY
2016/3

0.75

0.89

FY
FY
2017/3 2018/3

Include special factors

FY
FY
2017/3 2018/3

2.24

3.15

Include special factors

FY2016/3

Include special factors

20.15

23.01

bn yenbn yen

62.43

39.98

2.24

3.08

FY
2019/3

5

FY2019/03 Extraordinary Factors
In FY2019/3, extraordinary factors contributed to sales and profits,
such as tax effect associated with the Radish Boya merger
and including performance of Radishboya for 13 months due
to change in fiscal year-end.
Sales（bn yen）

Net income

1-month accumulation
due to change in fiscal
year-end Radish Boya

1-month accumulation
due to change in fiscal
year-end Radish Boya

62.43

64.02

（bn yen）

2.38

0.07

1.59

about
1.2

39.98

About
1.1

23.01
0.51
0.23
FY
2017/3FY
2018/3FY
2019/3（Include
Extraordinary
Factors）

FY
2019/3（Exclude
Extraordinary
Factors）

FY
2017/3FY
2018/3Tax effectassociated with
the Radish BoyamergerFY
2019/3（Include
Extraordinary
Factors）

FY
2019/3（Exclude
Extraordinary
Factors）

6

Profit structure in 4Q
Large-scale promotion of Oisix brands and M&A-related investments
to grow business from the next fiscal year onward in 4Q
Quarterly EBITDA trends
after considering growth Investments
1.36（bn yen）

Expenditures
for Oisix
large-scale
promotions

Office related
expenses
Recruitment
enhancement
expenses, etc.

M&A related
expenses

About
0.8

0.80
0.70

0.1
0.08

0.27

FY2019/3
1Q

FY2019/3
2Q

FY2019/3
3Q

FY2019/3
4Q
（実績）

0.35

FY2019/3
4Q（ExcludegrowthInvestments）

7

Excluding extraordinary factors of the FY2019/3
Details are described on P7

Business segment Results Overview
Sales

62.43
Other
Businessbn yenMarginal profit
margin11.9％

Segment costs

Total segment costs

RadishBoya

DWMK

Marginal profit
marginSegment costs

18.7％

Marginal profit
margin52.60bn yen

Segment costs

18.2％

Marginal profit

9.83
Oisix

Marginal profit
margin13.6％

Segment costs

bn yenCompanywide fixed costs,
Goodwill etc,

7.59bn yen
Operating Profit

2.24

bn yen8

Achievements in Social Issues
In promoting solutions to social issues, we also look to quantify social activities
achievements and accelerate the resolution of issues through our business.

Approach to social problem
Manufacture

Procurement

Warehouse
distribution

Sale

Consumption

Directly contracted
Producers

Shipments of organic andlow-pesticide vegetables
that meet our own standards

No. of subscribers

About

About

About

4,000

15,000t

300,000

No. of participantsin Producer technicalworkshops

No. of participantsin exchange events connecting
Producers and consumers

No. of children
eating meals
using our Food

Total

Total

About

864

6,250

14,0009Overview of Business Segments① Domestic Delivery business（Three major brands）
Oisix
DWMK
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business
Real Retail BusinessSubsidiary, Affiliate
10Overview of Business Segments

Domestic Delivery business（Three major brands）
Domestic Delivery business（Other）① Domestic Delivery business（Three major brands）

Other Business

Oisix
DWMK
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business
Real Retail BusinessSubsidiary, Affiliate
11

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Other BusinessNo. of subscribers：
Increased due to effects of large-scale promotions implemented in March
ARPU：
Price/purchase increased despite slight decrease in purchase frequency
owing to an increase in light users

No. of subscribers

ARPU※

205,976

11,183yen（YoY +21.4％）

205,976（YoY -3.6％）

197,272
189,352
179,942
169,664
11,602

11,562

11,534

11,183

11,127FY2018/3

FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2018/3

FY2019/3

FY2019/3

FY2019/3

FY2019/3

4Q

1Q

2Q

3Q

4Q

4Q

1Q

2Q

3Q

4Q

※ ARPU=Average Monthly Revenue Per User

12

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）

Other BusinessIn addition to the rapid expansion of awareness of meal kits, we were able
to capture potential demand by strengthening PR in various media.
As a result, the number of meal kit course subscribers exceeded 110,000.
No. of meal kit course subscribers(Includes Oisix subscribers)

111,169

Feature of Kit Oisix
１
Delivers volumes/quantities of food

111,169（YoY +56.3％）

suitable for a given family size. Allows
preparation of the main dish and sidedish in 20 minutes.

94,841

2

87,232All menus contain five or more

79,674types of vegetables and reflect

71,124

consideration for well-balanced
nutrition.

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

FY2019/3

FY2019/3

FY2019/3

FY2019/3

4Q

1Q

2Q

3Q

4Q

13

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）

Other Business
Large-scale promotions of Kit Oisix were conducted in March.
Maximizing new acquisitions to contribute to earnings from the next fiscal
year onward

Maximize acquisition through large-scale promotions
Awareness

Interest●Expansion of awarenessthrough TV commercials
Focus on Kit Oisix convenience●Strengthen online
advertement
Strengthen online advertement
in conjunction with TV commercials

Acquisition●Expanding media exposure
Presentation of recipes and cooking classes
under the supervision of Yuko Oguraof Oisix Mamasa Supporter●Coupons linked
to campaigns
Giving coupons linked
to TV commercials

Significant growthin ordersfor trial sets limited
to first-time users

14

Domestic Delivery business（Three major brands）

DWMK KPI

Domestic Delivery business（Other）

Other BusinessNo. of subscribers：
Prioritize service design to improve LTV and shrink low LTV channels
ARPU：
Increasing due to implementation of product development and services with
an emphasis on Subscription

No. of subscribers

ARPU※

40,21019,758yen（YoY -10.5%）（YoY +2.7％）

44,933

44,111

43,83542,996

40,21021,84820,122
19,24019,75819,386FY2018/3

FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2018/3

FY2019/3

FY2019/3

FY2019/3

FY2019/3

4Q

1Q

2Q

3Q

4Q

4Q

1Q

2Q

3Q

4Q

【Change of No. of subscribers definition】
No. of subscribers definitions were changed
as subscription management was strengthened.

※ ARPU=Average Monthly Revenue Per User

15

Domestic Delivery business（Three major brands）

DWMK Topics

Domestic Delivery business（Other）

Other BusinessNo. of subscribers definitions were changed to strengthen Subscription management.
Accelerate product development based on the concept of "proper dietary habits" toimprove LTV.
Changes in No. of subscribers
Product development to meet target needs
definitions in line with subscription contract
Require subscription contracts at admission
and change Numberof subscribers definitions accordingly.

● “Eating with Vegetable”

Old：The annual membership fee expiration dateis valid.
New：Excluding non-active members who pay
only annual membership fee and counts
only customers with a subscription contract

A side dish product that can be produced
by adding only one kind of vegetables.
Sales more than doubled compared
to ordinary new product

Old
New

50,00040,00030,00020,00010,0000FY
2018/03
4Q

FY
2019/03
1Q

FY
2019/03
2Q

FY
2019/03
3Q

FY
2019/03
4Q

16

Domestic Delivery business（Three major brands）

Radish Boya KPI

Domestic Delivery business（Other）

No. of subscribers：
Continue to focus on improving profit structure and decrease
due to reduction of loss-making users
ARPU：
Increased due to the revision of delivery fees
and the upselling of subscription products.

No. of subscribers

Other Business

ARPU※

63,461

17,264yen（YoY -18.7%）（YoY +3.8％）

78,062

74,94918,988

72,104
66,23363,461

17,264

17,277
16,63917,177FY2018/3

FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2018/3

FY2019/3

FY2019/3

FY2019/3

FY2019/3

4Q

1Q

2Q

3Q

4Q

4Q

1Q

2Q

3Q

4Q

【Change of No. of subscribers definition】
No. of subscribers definitions were changed
as subscription management was strengthened.

※ ARPU=Average Monthly Revenue Per User

17

Domestic Delivery business（Three major brands）

Radish Boya Topics

Domestic Delivery business（Other）

Other BusinessChanges in No. of subscribers definitions.Loss-making user ratio steadilydecreased due to the revision of delivery fees and the upselling ofsubscription products.
Changes in No. of subscribers
definitions in line with subscription contract
Old：The annual membership fee expiration dateis valid.
New：Excluding non-active members who pay
only annual membership fee and counts
only customers with a subscription contract
90,000

Reduction in the number of loss-making users

43% decrease

in total loss-making users（compared the endof FY2019/3 2Q）

Price
per
purchaseOldNew

80,000Conversion to
Profitable deliveries
by increasing averagecustomer spend

70,00060,00050,000

Profitabledeliveries

40,00030,00020,00010,0000FY
2018/03
4Q

FY
2019/03
1Q

FY
2019/03
2Q

FY
2019/03
3Q

FY
2019/03
4Q

Loss-making
deliveries

Natural withdraw
of Loss-making
deliveries Users'
Subscribers

18

Overview of Business Segments

Domestic Delivery business（Three major brands）
Domestic Delivery business（Other）① Domestic Delivery business（Three major brands）

Other Business

Oisix
DWMK
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business
Real Retail BusinessSubsidiary, Affiliate
19

EC support businesses（Alliance）

Domestic Delivery business（Three major brands）
Domestic Delivery business（Other）

Other Business

Steady expansion of EC support businesses utilizing our strengths of"Subscription e-commerce know-how" and "logistics schemes"

Exceeded
10,000 users
at the fastest
rate in our
EC-support
business

We support “Food Subscription businesses”
that understand the value offered by each brandand meet the needs
20

Domestic Delivery business（Three major brands）

Tokushimaru(subsidiary)

Domestic Delivery business（Other）

Other Business

The mobile Supermarket business for elderly shopping refugees(Acquired shares in 2016).The value of circulation has grown steadily,
and the number of operating vehicles has surpassed 380
The value of circulation
Development Scale

7.90

Number of affiliated Number of vehicles
supermarkets
in operationbn yen

7.90

109

385

5.55

3.60

1.49

FY2016/3

FY2017/3

FY2018/3

FY2019/3

21

Overview of Business Segments

Domestic Delivery business（Three major brands）
Domestic Delivery business（Other）① Domestic Delivery business（Three major brands）

Other Business

Oisix
DWMK
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business
Real Retail BusinessSubsidiary, Affiliate
22

Domestic Delivery business（Three major brands）

Other Business：
Overseas Business

Domestic Delivery business（Other）

Other BusinessHong Kong：
We renewed the regular delivery “Oisix Club" for Hong Kong residents.
Shanghai：
We launched a Chinese-language website to expand services for Chinese
customers.

Oisix Hong Kong

Oisix Shanghai

We renewed the regular delivery

We launched a Chinese-language website“Oisix Club" for Hong Kong residents.

to expand services for Chinese customers.

23

Domestic Delivery business（Three major brands）

Other Business：
Real Retail Business

Domestic Delivery business（Other）

Other Business

Shop in Shop
Overall sales decreased due to the withdrawal from unprofitable Shop
continuously, but profit structure improved.
Recently, we are expanding Shop by selling meal kits with vegetables/fruit.
Sales

0.72bn yen

No. of shops

7.7

134
7.2

4.1
3.0

FY2016/3

FY2017/3

FY2018/3

FY2019/3

24

Domestic Delivery business（Three major brands）

Other Business：
Real Retail Business

Domestic Delivery business（Other）

Other Business

Kindergarten Wholesale

Sales increased due to steady growth in new No. of participatingkindergartens due to the timing of fiscal year switching.
Sales

0.78bn yen

0.78

No. of tradingkindergartens

351

0.44

0.13
0.05

FY2016/3

FY2017/3

FY2018/3

FY2019/3

25

2. Future Growth Strategy

26

Domestic Delivery business（Three major brands）

Growth Strategy
for 3 Home Delivery Brands

Domestic Delivery business（Other）

Other BusinessIn accordance with management expertise in Subscription delivery,
we properly implement business strategies in line with the business phases of eachbrand during the FY2020/3 period

Accelerating Business Growth
by Capturing Increased Needs
in Kit Oisix

Design service and producttakeoffs to meet target needs✔ Further evolution of Kit

service of "Grocery✔ Providing
Stores that make your cooking

Oisix

enjoyable"✔ Development of

new services
following Kit Oisix

service that
✔ Providing
realize a "proper dietary
habits"27

Domestic Delivery business（Three major brands）

Further evolution of Kit Oisix

Domestic Delivery business（Other）

Other BusinessWith regard to Oisix brands, we will continue to position "Kit Oisix"
as the core of our strategies, and implement measures to strengthen evolvethe brand, including strengthening appeal and expanding sales channels.

Kit Oisix
Strengthen collaborative products

Expanding sales channels

Collaboration with the animation "Crayon Shin-chan"and "Kurihara Shinpei“,cooking expert

Expanding sales channels suchas Shop in Shop and Kindergarten Wholesale

Appeal for food loss
Appeal the reduction of food waste in the household
as a secondary factor using evidence28

Domestic Delivery business（Three major brands）

Development of new services
following Kit Oisix

Domestic Delivery business（Other）

Accelerate development of new services following Kit Oisix.
Released services for new value propositions, “Chanto Oisix”
and Prime Pass Service

Other Business

Oisix“Chanto Oisix”

Prime Pass Service

Delivery sets of foodstuffs and recipe for
Vegetable main dishes for 3 or 5 days

Flat-rate service with selectable vegetables
and fruits. Customer Customers canchoose several items a week（Scheduled in June）

29

Growth strategy of DWMK

Domestic Delivery business（Three major brands）
Domestic Delivery business（Other）

Other Business

Providing service that realize a "proper dietary habits" in an easy-to-use
mannerDWMKEveryday Vegetable Side dishes Set

Strengthen the frozen fish category

A set of ingredients and recipe for 5-days
Vegetable-centered side dishEasy reproduction of the Showa 50’s
dinner table, which is said
to be the most healthy30

Growth strategy of Radish Boya

Domestic Delivery business（Three major brands）
Domestic Delivery business（Other）

Other Business

Providing service of "Grocery Stores that make your cooking enjoyable"

RadishBoya
Palette customization
Rooted vegetables tend to be extravagant
and are always discarded...

Product development for enjoying
vegetable-friendly and cooking

We don't want poor vegetables...

Enable customization
to meet the needsof individual households

We expand products whish set offoodstuffs + seasonings that can be cooked
one dish simply by adding vegetables
31

Launch of d-meal kits

Domestic Delivery business（Three major brands）
Domestic Delivery business（Other）

Other Business“d-meal kits”which we have been promoting with NTT docomo, is scheduled
to be launched in July. Utilizing Our Meal Kit know-how and NTT docomo's
membership base・Product development
・Marketing
・Fulfilment

・Membership base・d Point
・d Pay/docomo Pay
32

VegeNeco Project

Domestic Delivery business（Three major brands）
Domestic Delivery business（Other）

Other BusinessWe aim to build an open platform that offers one-stop efficiencies fromordering and delivery of agricultural products with Yamato Transport
Overview

VegeNeco Project

We initiatives began
to resolve issues
related to purchasing
and logistics from Producers,
as well as the last mile.
Recent Efforts（since March in 2019）
Complex analog tasks, such as order exchange, data
management, and ledger preparation, are performed
collectively using PCs and smartphones.

【Introduced Companies 】“Nagasaki Nanbu” Production Union
Salad Bowl Co., ltd.

33

Growth in Domestic
Subscription Delivery
Providing Food Subscription Services that meet the Needs of Each
Generation through Multiple Brands
Strategy ofDomestic
Subscription
DeliveryStrategy of Domestic Subscription Delivery
Focusing on quality

Business Cannel

Evolution of theThree Major
BrandsGeneration

Expanding new
businesschannels

Focusing on convenience

Marketing Platform
Fulfilment Platform

Promotion of
the VegeNeco
project
34

Current business matrix
In addition to the domestic delivery of subscribers, we are partially developing thedomestic real business and the overseas subscription Home Delivery Business.

Current business matrix

Real

Shop
in
Shop

Real
Shop

Delivery

Oisix
Hong
Kong

Oisix
ShanghaiDomestic

Overseas35

Domestic Delivery business（Three major brands）

Topic1:
Acquisition Purple Carrot as a subsidiary

Domestic Delivery business（Other）

Other BusinessWe acquired Purple Carrot, a wholly owned U.S. vegan meal kit,
as a subsidiary. We will leverage the strengths of subscription services
cultivated in Japan to develop business in the U.S.

Size of the U.S. meal kit market$5
Billion

2015$35
Billion2020

Size of the U.S.
plant-based food market$13.3
Billion×$24.7
Billion✔ Global Expansion of Vegan Food × HealthConscious Food of Japanese Foodin both Asia and the U.S.

management expertise in food✔ Expanding
Subscription Model to Purple Carrot toachieve profitability at an early stage

2017

2025

※Consolidated results for the fiscal year ending March 31, 2020are for six months.

36

Domestic Delivery business（Three major brands）

Topic2:Acquisition Welcome as a affiliate

Domestic Delivery business（Other）

Other BusinessWe made DEAN &DELUCA brand operating company”Welcome Co., Ltd.,”,where we had a small investment, affiliate company by underwriting a third-party
allotment of new shares. We plan to conclude capital and business alliance agreements
and implement initiatives utilizing the assets of both parties

Oisix ra daichi

Welcome×・EC marketing know-how

・Real Shop management know-how

・About 300,000 Subscription members

・Tremendous brand image
centered on young women✔ Launch of logistics reform project for Welcome✔ Strengthen products jointly developed✔ Coordination of Know-how with our shop business※Consolidated results for the fiscal year ending March 31, 2020are for nine months.

37

Expanding Business Domains
to Non-Linear Growth
In addition to the domestic delivery of subscribers, we began overseasdelivery of subscribers and entry into the domestic real estate business.
Business Area Expansion

Real(20%出資)（20%
stake）
Shop in
Shop

Real
Shop

Kindergarten
wholesaleStrengthen domestic
and real businesses
Expansion ofoverseas × subscription delivery

Delivery

Oisix
Hong
Kong
Oisix
ShanghaiDomestic

Overseas38

3. FY3/2020 Outlook

39

Consolidated Outlook Overview
Sales and EBITDA are expected to increase.
Operating income is expected to decline due to goodwill amortisation at
subsidiaries.
Sales
Operating Profit
EBITDA70.00

bn yen3.20

70.00
3.15 3.08

0.99

FY
2020/3
OutlookFY
FY
2017/3 2018/3

FY
2019/30.75

FY
2020/3
Outlook

0.89

FY
FY
2017/3 2018/3

2.20

Including Extraordinary
factors

FY
2019/3

1.67

2.24

Including Extraordinary
factors

FY
FY
2017/3 2018/3

Including Extraordinary
factors

23.01

bn yen

3.20

62.43

39.98

2.20

bn yenFY
2019/3FY
2020/3
Outlook40

FY2020/3 Sales Outlook
Excluding special factors caused by consolidation of subsidiaries,
Net sales increased by 5 to 6 billion yen YoY.
Changes in sales
after considering
Extraordinary factors

1-monthaccumulation due tochange in fiscal yearend Radish Boya

64.02

70.00
About
2.0
About
５.0

1.59

23.01

FY2017/3

FY2018/3

Including Extraordinary
factors

39.98

6-monthconsolidated for
Purple Carrot
Increase inrevenue due tobusiness growth

YoY difference is,

62.43

FY2019/3

About+7.5bn yen
FY2020/3
Outlook41

FY2020/3 Profit Outlook
Profits are expected to decline due to the elimination of corporate tax effects
and the impact of goodwill amortization at subsidiaries and affiliates.
Excluding extraordinary factors, however, profits are expected to increase
due to growth in Home Delivery Business.
Outlook of Net income
2020/3 Cost increase due to M&A
after considering Extraordinary factors
2.38

0.07

About
1.2

About
1.1
FY2019/3

1-month accumulation
due to change in fiscal
year-end Radish BoyaTax effect associatedwith the Radish Boyamerger

FY2019/3
Extraordinary
factors

PC Inc.
Operating
loss

About
0.2
YoY difference excluding
Extraordinary factors is,+0.4bn yen

About
1.5

FY2020/3
Outlook（Excliding
M&A Factor）

PC Inc.
goodwill
amortization

About
0.2

PC Co,. Ltd.
equity-method
goodwill
amortization

About
0.1
1.00

FY2020/3
Outlook※Amortization of goodwill
has not been determined at this time42

Business segment Results Outlook
Marginal profit Outlook
Sales Outlook

Home Delivery Business

Oisix

DWMK

34.90bn yen

5.00bn yen(YoY +17.8％)(YoY +24.0％)

10.90bn yen(YoY ±0.0％)

RadishBoya15.30bn yen(YoY -7.8％)

Other
Business（Exclude the impact
of goodwill amortization）

2.00bn yen(YoY +1.0％)

3.00bn yen(YoY -3.5％)

8.90bn yen

0.80bn yen(YoY +53.7％)(YoY +11.1％)

Grow steadily in response
to growing needs for Kit Oisix

Cralify products and services
in line with target needs
and promote service designthat is supported continuously

Continuous improvementin profit structure,and design services such as
product developmentthat will be supported by targets
In addition to growth in Solution
Business/Real Retail Business,
Purple carrot Inc, sales arebooked for 6months.
In terms of profits, we will
promote the early improvementof profitability of PC Inc..
43

Outlook of subscribers/
3 brands business growth
In accordance with management expertise in Subscription delivery,
we properly implement business strategies in line with the business phasesof each brand during the FY2020/3 period
Outlook of subscribers
3 brands business growth

333,000
309,000
29,2000

RadishBoya

Accelerating Growthby needs of Meal Kits

Oisix

58,00063,461

DWMK

78,06240,00040,210Radish Boya

44,933・Continuous improvement in profit structure
・Service design supported by targets

Oisix
205,976

235,000

DWMK

169,664

FY2018/3

FY2019/3

FY2020/3

2019/3・Cralify business opportunities for products and services
・Design services supported Continuously

2020/344

4. Social Activities

45

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.
46

N-1 Summit・Organic Festa
We held two communication events with the aim of interacting ofagriculture technologies between Producers, and Producers and consumers
N-1 Summit（Oisix）
・Awarded "Farmers and of the Year"selected by customers and held
discussions among Producers
・About 400 ORD Producers nationwide
participated.

Organic Festa（DWMK）
・Communication events linking「Producers」「Oisix ra daichi」「Comsumer」
・More than 2,000 subscribers
participated.

47

Tohoku Leaders Conference
・Business people from Tohoku area participated to discuss the creationof a new business model from a regional perspective

Tohoku Leaders Conference
Date：April 19 th ~ 20 th in 2019
Place：Fukushima J Village
Main Speakers：
Members of the House of Representatives：

Mr. Koizumi Shinjiro
Governor of Fukushima Prefecture：

Mr. Uchibori Masao
Deputy Governor of Fukushima Prefecture：

Mr. Suzuki Masaaki
Deputy Mayor of Tomioka-cho, Futaba-gun,
Fukushima Prefecture：

Mr. Takahashi Yasuaki
Etc.
48

A Million People Candle night・Initiatives to propose a sloping lifestyle for the sustainability of society
without using electricity
・The 17th meeting is scheduled to be held at Zojoji Temple in June 15th
2019.

49

Welcome Back Ceremony"Welcome Back Ceremony" for mother employees who return to work washeld to ensure a smooth return.
Since listing in 2013, 37 employees have returned to work, and both thepercentage of female employees taking childcare leave and the percentage offemale employees returning to work after taking leave have reached 100%.
Taking full advantage of the resources of short-time employees,
we now have 43 short-time employees, mostly reinstated mothers

50Summary of Notes Regarding Financial Results for the FY2019/3
and Forecast for the FY2020/3①Changes in the fiscal year-end of Radishboya
Due to the change in the accounting period from the fiscal year ended February
to the fiscal year ended March following the management integration,
the Company's results for the 13 months from March 2018 to March 2019 arerecorded as an irregular accounting period.

②Tax Effects of Radishboya
Net operating loss carryforwards and deferred tax assets have been
generated, resulting in approximately 1.2 billion tax benefits.
As a result, net income is at the same level as operating income andordinary income, but this tax effect will be eliminated from the FY2020/3
and will be in line with normal conditions.

③Consolidated Results of Operations by Purple Carrot
Purple Carrot is expected to become a consolidated subsidiary for six months,
with sales of approximately 2.0 billion yen and operating income of ▲0.2 billion yen.

④Goodwill associated with the acquisition of shares of
Purple Carrot and WELCOME CO.,LTD
The amount of goodwill has not been determined, but approximately 200 million yen has
been allocated for Purple Carrot and 100 million yen has been allocated for WELCOME Co.,LTD.

51

5. APPENDIX・DATA SHEET

52

Corporate Overview

Name：

Oisix ra daichi Inc.

Location：

Shinagawa-ku, Tokyo

Established：

June 2000

Representative： Kohey Takashima, Representative Director & CEO
Capital：1,284,022,000 yen

Employees：

735 (consolidated), as of the end of March 201953

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.

Three Limes ,Inc

Meal kit delivery service in the United States

Affiliates
Nihon Agri Inc.

Exports agricultural products.

Welcome Co., Ltd

Lifestyle business through retail and restaurant businesses
Manufacture and sale of imported and processed foods, and operation of cafes
54Trend in No. of Employees
735
680

421

163

FY2013/3

179

FY2014/3

192

FY2015/3

210

FY2016/3

FY2017/3(Consolidated)

FY2018/3(Consolidated)

FY2019/3(Consolidated)

55

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

56

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

Producers

57Subscription Management
Building a subscription model that generates sustained profits
through rapid returns on investment to secure new customers
and rigorous management of per delivery revenue and expenditures
Rigorous CPA and LTV management

Rigorous managementof unit revenues and expenditures

Setting a period to recoup CPA and rigorously

Making percentages of loss-making deliveries visible

managing CPA within this range

for each unit and reducing them structurally

Building a sustained profit stream

ProfitCPA
recovery
periodPriceperpurchase

Profit LTV
Profitabledeliveries

0
Time
CPA

CPA: cost per acquisition
Profit LTV: lifetime acquisition value

Loss-making
deliveries
Subscribers

58

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
decisions59Differences in the assetsof the three 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）
60

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

62

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 management

63

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.

64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 rule

65

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.

66

DATA SHEET：Results
Results
FY2017/3

FY2018/3

FY2019/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Sales

5,379

10,718

17,11323,016

9,602

18,93530,00739,987

16,85331,72048,90664,026

Operating
Profit

169

270

625

752

141

237

692

891

610

1,115

2,265

2,312

EBITDA

225

391

810

996

320

635

1,282

1,670

808

1,513

2,882

3,154

Net income
Attributableto owners of
the parent

119

187

429

515

72

93

336

237

537

893

2,533

2,387

（mn yen）

67

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

FY2019/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Sales

5,790

11,47018,481

24,7996,863

13,76922,19029,619Marginal
profit

674

1,392

2,421

3,288

970

1,943

3,371

4,036

Sales

2,790

5,487

8,508

11,215

2,769

5,440

8,405

10,902Marginal
profit

539

1,078

1,650

2,095

479

960

1,536

1,989

Sales

-

-

-

-

5,811

9,926

14,34618,028Marginal
profit

-

-

-

-

1,030

1,765

2,657

3,342

Sales

1,109

2,163

3,263

4,250

1,482

2,755

4,198

5,793

Marginal
profit

185

384

571

760

154

290

479

724

Companywide fixed costs,
Goodwill etc

1,257

2,853

3,951

5,253

2,024

3,844

5,779

7,779

Oisix

DWMK

Radish Boya

Other Business

68

Data Sheet：Main KPIKPI trend
FY2018/3

Oisix

DWMK

Radish Boya

FY2019/3

4Q

1Q

2Q

3Q

4Q

Subscribers(number)

169,664

179,942

189,352

197,272

205,976

ARPU
（yen）

11,602

11,562

11,127

11,534

11,183

5,925

6,002

5,973

6,150

6,015

1.96

1.93

1.86

1.88

1.86

Subscribers(number)

44,933

44,111

43,83542,996

40,210

ARPU（yen）

19,24020,122

19,386

21,84819,758

7,726

7,770

7,553

8,529

7,811

2.49

2.59

2.57

2.56

2.53

Subscribers(number)

78,062

74,94972,101

66,233

63,144

ARPU（yen）

16,63917,277

17,177

18,98817,264

5,278

5,460

5,616

6,114

5,869

3.15

3.16

3.06

3.11

2.94

Price/
purchase（yen）
Purchase
Frequency(number)

Price/
purchase（yen）
Purchase
Frequency(number)

Price/
purchase（yen）
Purchase
Frequency(number)69

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.

70