FY2015 2Q Result Report(April 1, 2015 – September 30, 2015)

November 10, 2015
Oisix Inc.

FY2015 2Q Highlights

Results

E-commerce（Oisix.com)

Others（not Oisix.com））□【15 consecutive years the best sales of 2Q】】
・Sales
9.375 billion yen +112.1% YoY・Operating profit
2.61 million yen +291.5% YoY
Net sales grew at 12% due to an increase in the number of subscribers
Operating profit up as a result of controlling costs/sales promotion
expenses, and contribution of non-EC businesses to revenues□Number of Subscribers：：102,000 +11,000 YoY□Various measures advancing as scheduled・Full-fledged operations started at a new processing plant(Oisix Dining Center)・Operation started at a new logistics center (No. 2 Oisix Station)□Overseas stablishment of local subsidiary in Hong Kong,
capital tie-up in business with a corporation in Taiwan□Store Business Expansion of "Shop-in-Shop“□Fulfillment outsourcing service Increasing clients ofOisix Fulfillment Marketing Support
1１．Result in the First half of FY2015
２．Progress on the action plan ofFY2015 and action plan in thesecond half of FY2015

2

Overview in the first half of FY2015– Net sales rose around 12% due to a rise in the number of subscribers, etc./operating
profit rose
– Growth in the mainstay EC business and more efficient promotions as well as thecontribution of non-EC businesses to revenues– –Operating profit increased by 170 million yen YoY despite an impact of a 50-million-yen
decline from a hike in Yamato's transport charges

2015年3月期
上期実績

2016年3月期
上期実績

前年同期比

2016年3月期
上期予想

上期進捗率

2016年3月期
通期予想

通期進捗率

8,366

9,375

112.1%

9,300

100.8%

20,000

46.9%

営業利益

89261

291.5%250

104.6%

750

34.9%

経常利益

100

279

277.9%

260

107.4%

770

36.3%

当期純利益

55

177

318.4%

160

111.2%

480

37.1%

単位：百万円

売上高

3

Overview in the first half of FY2015（million yen）
10,0009,000

9.3B

15 consecutive years
the best sales

8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

4

KPIs
Subscriber Base– Subscriber base increased by around 6,000 compared with the beginning of FY,
growing to 102,000KitOisix– Expansion in the number of KitOisix subscribers contributed to growth in the subscriber
base

End ofFY2015
FY2013

FY2014FY2015

5KPIsARPU Breakdown ※ARPU: Average Revenue Per User
– Impact on purchase frequency due to the Obon and the Silver Week holidays lasting for
two weeksPC– Decline in unit price due to improvement in purchase ratio via smart devices, whichhave a lower unit price for purchase than PCs（yen）
ARPU：：Frequency × Unit Price

ARPU

Annual Rise Point(3Q)

The last-minute demand
before the consumption
Tax hike

FY2013-1.4% YoY（-¥167）

FY2014FY2015

6KPIsARPU Breakdown– Sustained levels from the previous years due to the impact of Obon/SW compared with
the increase in the number of KitOisix subscribers, who show high purchase frequency– Curbed unit price declines through improved smart device ratio, such as by enhancing
smart device UI, etc.
Frequency

FY2013

FY2014FY2015FY2014FY2015×Unit Price

Annual Rise Point(3Q)

FY2013The last-minute demand
before the consumption
Tax hike7

１．Result in the first half of FY2015
２．Progress on the action plan ofFY2015 and action plan in thesecond half of FY2015

8Overview of Action Plan in FY2015□Main activities policy
UpscalingInfrastructure① Investing to Support Fastgrowing Services② Growing Core EC BusinessUpgrading
CurrentBusinesses

FutureGrowth③ Contribution of non-EC businesses to revenues④ R&D in Food/healthcare Domain

9Progress on the action plan of FY2015 andaction plan in the second half of FY2015① Investing to Support Fastgrowing Services(a) Opening of a processing plant (Oisix DiningCenter)(b) Operation of a new logistics center (No. 2 OisixStation)

10

① Investing to Support Fastgrowing Services（a））Opening of a processing plant (Oisix Dining Center)– Response to an increase in KitOisix shipping volume (manufacturing capacity expandsby 4 times)– Costs reduced for KitOisix in September as a result of steady operations and enhanced
processing efficiency, despite expenses associated with a move in July and August(reduced 15% YoY)

□Optimizing processed items
processing plant①①

BeforeDelicatessen□Reduced KitOisix costs

Increase inshippingcapacity

MeatAfter

Processed
fishsalad

Kit1008515%
reducedProducts for line processing, such as Kit,
to be processed at newly opened plant
processing plant①①
processing plant②②
NewNEW
Delicatessen

MeatProcessedfishNewsaladKit

Aiming for further efficiency toward end of the fiscalyear11

① Investing to Support Fastgrowing Services（b））Operation of a new logistics center (No. 2 Oisix Station)– Trial operation of the new logistics (No. 2 Oisix Station) in September– Full-fledged operations of the new logistics center from November in response toincreasing shipping volume and format– Improved service levels as a result of enhanced efficiency in shipping to stores anddevelopment of Company's proprietary transport network□new logistics center (No. 2 Oisix Station)□No. 2 Oisix Station outline
location：：yashio-shi,Saitama
area：：3.95 square yards（Current operating is 0.99 square yards））□Anticipated effects––

Efficient store shipments
Improved service levels as a result of developing
proprietary shipping network□Overview of the Company's own shipping service––
Digital picking system

The Company's own
shipping casePre-delivery processing
machine–Customers can receive products when not at homeby specifying a drop-off location
Early delivery enables customers to receive products
before leaving for work in the morning
Delivery in a reusable insulated cooler bag12

② Growing Core EC Business(a) Growing KitOisix course(b) Improved unit price as a result ofenhanced smart device UI13

② Growing Core EC Business（a））Growing KitOisix course（（First half summary of activities））– Increase of around 17,000 from previous year, with aggressive PR having become
possible due to the operation of a new processing plant– Added new time-saving premium products, such as the Salad Kit and Make Ahead Kit,to the lineup□About KitOisix□The number of KitOisix subscribers
・Oisix safety standard

23K

25,000・Just 20 minutes
・Seasonal vegetables
20,000□Main activities in 1Q FY2015

15,00010,000Sold in total
Collaboration withChildren are the judge:
nebaaru-kun Natto
Kodomo (children's)
girai kappuku
monitor certified menu
(overcome your dislikeof natto) Kit

Salad Kit: Easy-tomake delicious salad

KitOisix-related media exposure: Total of 43: 13 on TV,
6 in newspapers, 2 in magazines, 22 websites

1,500,000 Kits

5,000

(as of Sep. 2015)

02Q

3Q

4Q

FY20131Q

2Q3Q

FY2014

4Q

1Q

2Q

FY201514

② Growing Core EC Business（a））Growing KitOisix course（（Second half summary of activities））– Strengthen series on cooking with children– Boost to the satisfaction level of menus, such as the Nabe (hot pot) Kit, also reinforced
menus for three people– Strengthen initiatives to support working women□Series on cooking with children□Second half summary of activities––Take on the challenge ofextending productexpiration dates
Develop the Nabe (hot pot)
Kit, and expand menus,
such as kits for three people□Initiatives on supporting working womenby

・Support working women byparticipating in Google's
activities aimed at assisting
women, and coordinatingwith supporting companies
・Offer services to welfare
programs that support
women operated by a
subsidiary of CyberAgent

15

② Growing Core EC Business（b））Improved unit price as a result of enhanced smart device UI– –Narrowed difference in unit price versus PC users through improved navigation,etc.(difference of 550 yen to 320 yen)
– High praise from 81% of customers stating "easy to use" + "standard" in aquestionnaire after improvement□Images□Main improvement point––

Organized product categories
Improved navigation
・Specified the shopping process
・Promoted browsing by using footer
navigationShortened the path used forcancellations□Changes in the difference in unit pricebetween smart device users and PC users
about 230 yen
improved▲320yen▲550yen

AprMayJune

JulyAug

Sep

Execution of continuing improvement activities

16

③Contribution of non-EC businesses to revenues（a）Expansion of Shop in Shop in the store
business（b）Developments in the overseas business（ｃ）Expansion in client base in the Oisix
fulfillment outsourcing service

17

③Contribution of non-EC businesses to revenues（ａ）Expansionof Shop in Shop in the store business（ａ）– Improved sales per store as a result of renovations, and building an SV system– Taking place at a total of 22 stores as of November 10– Business conducted at a total of five supermarkets following launch at Kinokuniya□sales trend of Shop in Shopin the store business
62％％
Growth in sales
30,000,000

17stores25,000,000□First half of the summary of activities– New promotional materials, and fixtures– Built a sales floor maintenance system– Strengthened supervising functions□Scheduled to launch business at
the Kinokuniya Shinagawa store

20,000,000

15,000,000

11stores10,000,000＋5,000,0000

2014年
年9月売上
月売上
Sep.
2014

2015年
年9月売上
月売上
Sep.
2015

18

③Contribution of non-EC businesses to revenues（b））Developments in the overseas business in Hong Kong
– Achieved record sales through strong results from harvest moon events, and growth in
the regular home delivery model– –Established a local subsidiary (October 2015) prompted by the stable profitability ofthe Hong Kong business□Growth in sales/profits of theHong Kong business
60% growth in sales
over the previous year

2014年
年
9月
月
Sep.
2014

□An image of the website during theHarvest Moon season

About45M

2015年
年
9月
月
Sep.
2015

19

③Contribution of non-EC businesses to revenues（b））Developments in the overseas business in Taiwan– Capital tie-up in business with a natural foods home delivery company in Taiwan
scheduled to begin in the second half of the fiscal year
– The second country following Hong Kong utilized to gain a foothold toward expansion inEast Asia

□Images of wonderfulfood□The Wonderful Food overview
Establishment：：2011
president：：Bell Chiang（（Former CEO of theIBMgroup in Taiwan））
executive officer：：Maggie Chen（（agriculturalcommittee of Taiwan））
overview：：major Natural foodHome delivery inTaiwan□tie-ups overview[Business tie-ups]
・Develop the regular home-delivery model inTaiwan
・Overseas test marketing of expertise in quality
control in Japan (checked by Japan)[Capital tie-up]
・Considering a small amount of investment ofaround 5%
20

③Contribution of non-EC businesses to revenues（c））Expansion in client base in the Oisix fulfillment outsourcing service– Focus in the first half on expanding the number of clients for the EC Oisix Fulfillment
Marketing Support, which is based on results-based compensation, and building astructure, etc. to improve client sales– Scheduled to offer the Oisix Fulfillment Marketing Support service to a limited numberof 10 companies this fiscal year

□Client overview––––––

Company A specializing in mail orders ofdepartment store food productsCompany B specializing in selling highvalue-added food productsCompany C specializing in sellingfurniture and interior accessories
Company D, a manufacturer of global foodproductsCompany E specializing incorrespondence education
Company F specializing in cosmetics□Content of major support items–garner new
subscribers––––

Support toward improving LTV
Support toward turning one-time
purchasers to regularsubscribers––

Agent to produce websites
Educating personnel uponentering the company

CRM

Faculty

Support for formulating market
strategies
Marketing analyses
Support to garner new
subscribers

21

④ R&D in Food/healthcare Domain（a）Launch of Highly Nutritious Vegetable Brand（b）Established the Food Innovation Lab22

④ R&D in Food/healthcare Domain（a））Launch of Highly Nutritious Vegetable Brand– Launched “Kiku-vege” brand, a collection of highly nutritious vegetables“Kiku” means “effective” especially in treatment□Images&Products□Background- The food functionality labeling system law
change 2015 spring

Sprouts rich in vitamin B12

Salad Oisix for Office” with
“Kiku-vege”

23

④ R&D in Food/healthcare Domain（b））Established the Food Innovation Lab– To determine activities and areas of research for the foreseeable futureTo promoteactivities through the Company's technological exploration, joint technologicaldevelopment and tie-ups with other companies□Activities/research domain
A. Food technology/agriculturaltechnology【ex】

Agriculturaltechnology

B. Healthcare x food domain【ex】

Freezing
technology

Vege-meat

C. The future food business【ex】

Home deliveriesof food products
for dietingwith monitoringby a medical
doctorShopping
serviceSmartcooking home
appliances

24Strengthening the management structure

25

Strengthening the management structure– Strengthened activities to hire those with expertise from the outside in a bid toaccelerate business expansion– Strengthened the management structure in order to realize reinforced governance/aflexible capital policy
Aug.2014

Former head of the EC Group at
Dr.Ci:Labo Co., Ltd. Toshiyasu Nishii
participates in the EC Business
DivisionJune.2015 Invited JIN Co., Ltd.'s President, CEOand Representative Director Hitoshi
Tanaka to serve as Outside DirectorOct.2015

Former head of the Web Division at
Ryohin Keikaku Co., Ltd. Takashi
Okutani take part in the EC Business
Division

Nov.2015

Hajime Yamanaka, one of the founding
members of eAccess Ltd. (unifiedmanagement control, accounting, IR),
takes part in ManagementHeadquarters

executive officer
EC Business Divisionassistant general manager
Toshiyasu Nishii

Outside Director
Hitoshi Tanaka

EC Business Division
Fusion marketing Division
general manager
Takashi Okutani

Management Headquarters
assistant general manager
Hajime Yamanaka
26