FY2014 3Q Result Report(April 1, 2014 – December 31, 2014)

February, 2015
Oisix Inc.

FY2014 3Q Highlights
Maximize revenue by high value-added year-end items to customers captured in
the first half. The third-quarter sales rose for the 14th consecutive year andincreased 13% year on year. Operating profit increased 28% year on year.

Results□【Maximize sales and profit】】- Sales: 5.2 billion yen (3months), up 13% YoY,
13.5 billion yen (9months), up 13% YoY- Operating Profit: 0.32 billion yen (3months), up 28%YoY,0.41 billion yen (9months), up 67%YoY

E-commerce（Oisix.com)□Maximize revenue by delivering Osechi and other highvalue-added year-end items to customers captured
in the first half.
□Upgrading services
・Frozen Kit Oisix and Nabe Kit Oisix was released.
・Oichika monthly sales hit a record high of 110 million yen.

Others（not Oisix.com））□Expanding Shop in Shop at Queens Isetan supermarkets
・The third Oisix store was opened in Shinagawa□Salad sales grew in quantity through the operation ofbooths at events.
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Contents

1. FY2014 3Q Result

2. Present Situation

2

FY2014 2H Strategy
Transition of sales/operating margin & Theme of Key activities
FY2014 ”Focus on distinction”

Sales

Maximize sales and profit

operating margin

FY2013 ”Focus on balance”
Increasing subscribers- Control promotional activities- Achieve profitability in the yearend selling season- Prepare for continued growth- Upgrading services- Active promotion of EC business

113% YoY
107% YoY

116% YoY

110% YoYFY2013 Actual
109% YoYFY2014 Forecast
115% YoY

3

Overview of 3Q FY2014
The third-quarter sales rose for the 14th consecutive year and increased
13% year on year. Operating profit increased 28% year on year.

(¥m)

FY20133Q(3months)

FY20143Q(3months)

YoY

Forecast
3Q(3months)

Achievement rate(3months)

FY2014
3Q(9months)

Forecastyear

Progressyear

4,596

5,210

113.3%

5,324

97.8%

13,57618,30074.2%

Operating Profit

257

329

127.7%

397

82.9%

418

750

55.9%

Recurring Profit

268

334

124.4%

404

82.8%

434

775

56.1%

Net Profit

138211152.1%

24287.1%

267

465

57.4%

Sales4Sales
The third-quarter sales rose for the 14th consecutive year and increased
13% year on year to 5.21 billion yen.
（billion yen）
65.21

5

14 consecutive years
the best sales

4+13%
(YoY)

+6%
(YoY)
32

10

FY20003Q

FY2001
3Q

FY2002
3Q

FY20033Q

FY20043Q

FY20053Q

FY20063Q

FY20073Q

FY20083Q

FY20093Q

FY20103Q

FY2011
3Q

FY20123Q

FY20133Q

FY20143Q

5

Number of Subscribers
The number of subscribers steadily increased by around 11,000 to93,400. We will aim to attain 95,000 by the end of this fiscal year.
Progress
88.2%

100,000+20.6%

95,00093,470（YoY, +15,995人 ）95,00091,54090,00087,01885,000+3.5%

82,081(YoY, ＋2,610)
80,00074,86575,971

74,81975,00076,937

77,47575,81673,86570,000
1Q

2Q

FY2012

3Q

4Q

1Q

2Q

FY2013

3Q

4Q

1Q

2Q

3Q

※End ofFY2014

FY2014※Integration of 2,261 subscribers of “Oisix×Recruit point” service in Oct. 2014

6ARPU： Average Revenue Per User

As a result of service enhancement, the value per purchase grew fromthe same period a year earlier. But the frequency figure droppedslightly for seasonal reasons.
（yen）

ARPU：：Frequency × Unit Price

14,000

ARPU
13,38813,46813,500
Annual Rise Point(3Q)

13,011

13,00012,593
12,50012,27812,127

12,006
12,001
11,872

11,866
12,000The last-minute demand
before the consumption
tax increase

12,441▲0.6%（▲¥80.6）
11,50011,000
1Q

2Q

3Q
FY2012

4Q

1Q

2Q

3Q
FY2013

4Q

1Q

2Q

3Q

FY20147Frequency & Unit price
The expansion of the monthly fixed-rate service for three dairy products had apositive effect, but the frequency figure dropped slightly for seasonal reasons.
Due to improvements in KitOisix, Oichika, and other services, the unit price rose.
2.20

Frequency

2.15

2.10

2.15
2.12

2.12
2.10
2.07

2.10

2.13

2.10

2.06

2.08
Forseasonal reasons

2.05

▲0.7%
（▲0.02）

1.97

2.00

1.95
1Q

2Q

3Q

4Q

1Q

2Q

FY2012

3Q

4Q

1Q

FY20132Q

FY2014×（yen）

6,433

6,426

6,500

Unit Price

Annual Rise Point
(3Q)

6,244

6,300

+0.1%
（＋¥ 7.0）

6,057
6,100

5,930
5,900

3Q

5,791

5,770

5,756

5,717

5,602

5,700

The last-minute demand
before the consumption
tax increase

5,828

5,500
1Q

2Q

3Q

FY2012

4Q

1Q

2Q

3Q

FY2013

4Q

1Q

2Q

3Q

FY20148

Contents

1. FY2014 3Q Result

2. Present Situation

9① EC business(1) Maximize revenue year-end sales(a) Osechi (traditional Japanese New Year meal)
Maximize revenue by delivering Osechi and other high value-added year-end items
to customers captured in the first half.

The number of
FY2014 sales isover

40,00010

① EC business(2) Upgrading services(a)KitOisix [Responding to needs for shortening meal preparation times]
KitOisix allows users to prepare main and side dishes in twenty minutes. The cumulative total numberof sets sold exceeded 700,000. We will enhance services with a focus on premium time curtailment inaddition to regular time curtailment.
16,000<about KitOisix>

The number of KitOisix subscribers- Limited to food materials thatmeet Oisix standards

More than
14,00015,000- Enabling preparation of mainand side dishes in just 20
minutes（as of Jan. 2015）- Containing large quantities ofseasonal vegetables

12,00010,0008,000

Sold in total6,000

700,000 Kits
(as of Jan. 2015)

4,000

Nabe Kit Oisix was released as a new
product offered only in winter.
It was featured in the Nikkei Marketing
Journal and other media.

Released in response to customers' calls
for longer shelf lives, Frozen Kit Oisix has
been very well received.

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① EC business(2) Upgrading services(a)KitOisix [Responding to needs for shortening meal preparation times]
Working with other companies to develop sets embodying various concepts. It was covered by anumber of media outlets.

Collaborations

Media outlets

8th Dec. 2014Nikkei Marketing
JournalPecolly by Ameba

Blabo!

21st Oct. 2014 Asahi Broadcasting Corporation

20th Nov. 2014 Fuji Television Network

20th Nov. 2014 Nippon Television Network

4th Dec. 2014 Nikkei Dual

“Dora-zemi”

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① EC business(2) Upgrading services(b) Oichika [Responding to premium food needs]
the Oichika mall-type service, offering Oisix products as well as other companies' premium products has
expanded to 79 locations. The original products developed in alliance with premium brands were hits.

UI改善
79 locations

Burnt potage with “Creamy caramel”
sweet potatoes13① EC business(2) Upgrading services(b)Oichika [Responding to premium food needs]
Five Weeks of Grab Bags was provided as a special year-end project and the Christmas Special
assortments of carefully selected Oichika items were so successful that monthly sales hit a record highof 110 million yen.
monthly sales
The number of locations
110 million yen
80

79 locations
70

60

50

40

30

20

10014

① EC business(2) Upgrading services(c) Improvement in attraction of selling spaces
Monthly fixed-rate service
for three dairy products- Exclusive offers to subscribers- Offering dairy products at lower prices in themonthly fixed-rate service- Widening the items covered by the service

Reservation- Exclusive offers to subscribers- Swift delivery of seasonal food materials
Beaujolais Nouveau, Christmas, Year-end and New Year holidays

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②Topics of other businessImagesOverview□ Expanding Shop in Shop at Queens Isetan
supermarkets

Shop in Shop

The third Oisix store was opened in Shinagawa inDecember, following the Futakotamagawa and Mejiro
stores.
As of January 2015, the Suginami Momoi store
opening was planned for January, and the totalnumber of stores increased to 14 in the Shop in Shopcategory.

□Salad sales grew in quantity through theoperation of booths at events.
(Marui, Mitsukoshi-Isetan, Lazona)

Saladfor Office

Apart from that, the monthly sales volume
surpassed 14,000 units after a large client
engaging in regular delivery services was acquired.

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③Topics of other activities“Love Letter from TOKYO to Farmers and Fishers””
About 35,000 people came to this event for two days this year.
Tokyo Harvest took place at Roppongi Hills Arena on Saturday and Sunday, November 8 and 9, 2014. Oisix co-hosted thissecond event in the series, taking part in the Tokyo Harvest Committee. In this annual series of harvest festivals, participants
enjoy autumnal crops together and rediscover the feeling of gratitude for the farmers supporting Japan's food culture. For the
first time in the series, concurrent satellite events were held at various locations in Tokyo.

StageGrand Opening CeremonyArtSports

Farm17