2023.3 Q2 Results
Explanatory Materials
Oisix ra daichi lnc.

2022.11.10

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.
1

Table of Contents

１. 2023/3 1H Achievements
1-1. Consolidated Financial Results

1-2. Strategy and Progress
・ Domestic B2C Subscription Strategy
・ Green Shift Strategy

1-3. Results on Business Segment

２．Business Portfolio Expansion
2-1. Domestic B2B Subscription
2-2. Innovative Products

３. ESG Topics■ APPENDIX・DATA SHEET

2

マスター タイトルの書式設定

1. 2023/3 1H Achievements
1-1. Consolidated Financial Results
1-2. Strategy and Progress
・ Domestic B2C Subscription Strategy
・ Green Shift Strategy

1-3. Results on Business Segment

1-1. Achievements

Exective Summary-2023/3 1H Achievements
Sales
Sales were in line with initial forecast. All three brands achieved a net increase in subscribers
in 2Q for after a year.
Whilst ARPU was weaker than the COVID-19 peak years of 2020~2021,
it remained above the pre-COVID-19 year of 2019.

◆

3 home delivery business✓ Subscribers ： Whilst new subscribers in the 2Q are typically weak owing to seasonal factors, net subscriptionsin the 2Q this year saw sequential QoQ growth. The three brands achieved a net increase forafter a year, resulting in a net subscribers growth of roughly 7,000 QoQ. （3 brands total）✓ ARPU： ARPU has been above initial expectations despite the headwind from the deregulation of COVID19 behavior; ARPU was -5% YoY (relative to pre-COVID-19 levels +4~12%).

EBITDA
Against COVID-19 driven rising profit margins last year, EBITDA fell YoY. However, with
Oisix New Ebina Station recovering and profitability enhancement initiatives making
good progress, EBITDA was above initial forecast.

◆

3 home delivery business✓ Recovery from Oisix New Ebina Station’s logistical problems essentially completed in Oct. Cost structure has
improved to pre-trouble levels.
✓Advancing profitability improvement objectives via such initiatives as full-scale operation of the Food Rescue Centerand countermeasures against soaring raw material costs.

◆

Other Businss✓ Purple Carrot (US) saw profit margin improvement reflecting price increases implemented in May to counter
inflation and the fruits of Operational Excellence initiatives.
52023/3 Summary of 1H Results
Sales：Developments in AfterCOVID-19 , such as the lifting of action restrictions, have accelerated,
and the churn rate and ARPU are returning to pre-COVID-19 levels, largely in line with initial forecasts.

EBITDA ：Against COVID-19 driven rising profit margins last year, EBITDA fell YoY. However, with
Oisix New Ebina Station recovering and profitability enhancement initiatives making good progress,
was above initial forecast.

Sales
売上高

55.45bn yen

EBITDA（ YoY – 34 %）（ YoY – 1 %）Operating
Income1.67bn yen（ YoY – 50 %）2.77bn yen

NetincomeAttributable toowners of theparent0.89bn yen（ YoY – 59 %）6

Consolidated Results Overview
Sales：Reaching 99% YoY, with ARPU declined, while Subscribers increased.
EBITDA ：Declined YoY reflecting a difficult comparison against last year’s high profit margins as well as
widening losses at Purple Carrot (U.S.) owing to inflation and the impact of Yen depreciation.
Still, EBITDA was higher than initial forecast.
Sales s

56.16

EBITDANet income

55.45
4.67

47.56
31.72

Attributable to owners of the parent

4.18

32.55

2.77
1.51 1.34

2.46

2.15

0.89

0.89
0.39

2019.3 2020.3 2021.3 2022.3
Q2*
Q2
Q2
Q2

2023.3
Q2

2019.3 2020.3 2021.3 2022.3
Q2*
Q2
Q2
Q2

2023.3
Q2

2019.3Q2*

2020.3 2021.3 2022.3 2023.3
Q2
Q2
Q2
Q2
（bn yen）*For the purposes of like-for-like vs Target comparisons, one extra monthof Radish Boya data (March 2018) was deducted from 2019.3 data.

7

YoY：Sales
Domestic home delivery business centered on Oisix increased by approx. 10,000 subscribers YoY
Relative to inflated COVID-19 driven performance last year, ARPU declined YoY.
And as a result, we were in line with initial forecasts.

- Sales（bn yen）

Breakdown

１ Decrease in sales of 3 home delivery
1business
Decrease in sales of 3
home delivery
business

・Increase in sales due to increase in subscribers：about ＋0.3 bn yen

56.16
about
0. 6

about

-1.0

・Decrease in sales due to decrease in ARPU
： about - 1.3 bn yen

55.45
２

about

-0.3

2

2022.3
1H： about – 1.0 bn yen

Decrease in salesof Purple Carrot

3

Decrease in sales of Purple Carrot： about – 0.3 bn yen
・Downward trend in Subscriber after peaking in theprevious Q1

Sales
increase
Other

３2023.3
1H

Sales increase of Other： about + 0.6 bn yen
・EC support
・Kindergarten wholesale・Hong Kong/ Shanghai
・Consolidated subsidiaries

8

YoY：EBITDA
EBITDA fell owing to the negative repercussion effect of COVID-19 driven inflated profitability last year.
Whilst Purple Carrot posted a loss reflecting such factors as soaring raw material and labor costs, 2Q
returned to profitability on a non-consolidated basis.
-EBITDA（bn yen）

1

Breakdown

１

Decrease in profits in the3 domestic
home delivery businesses： about – 0.3 bn yen

２

Purple Carrot (U.S) Reaching a
deficit： about – 0.9 bn yen

Decrease in sales of
3 home delivery business

4.18

about
-0.3
about
-0.9

2

2022.3
1H

Purple Carrot
Profit decline

about
-0.2

2.77

・2022.3 1H +0.8bn yen⇒2023.3 1H：-0.5bn yen
・Loss in the current fiscal year due to the impact of inflationin addition to the decrease in sales

3 Fixed cost
increase

３2023.3
1H

Companywide fixed costs increase： about – 0.2 bn yen

・ Preparatory expenses for renewal of system infrastructure(enhancement of speed and data utilization).
・ Strengthening personnel for business enhancement and expansion

9

Business segment Results
Sales

Oisix

Daichi

RadishBoya
PurpleCarrot*(Results for
January to
June)

Other
Business*

Segment profit*

28.45 bn yen

3.82 bn yen(YoY 0 ％)(YoY - 6％)

6.14 bn yen

1.18 bn yen(YoY - 7％)(YoY - 10％)8.37 bn yen

1.12 bn yen(YoY - 4％)(YoY - 1％)

5.17 bn yen-0.04 bn yen(YoY - 7％)(YoY -0.09bn yen)

7.95 bn yen

0.75 bn yen(YoY +15％)(YoY - 13％)

Overview
・Subscriptions increased by roughly 8000 YoY. The 2Q
saw a net increase of 5500 reflecting, similar to 1Q, new
PR investments emphasizing acquisition efficiency.
・ ARPU was maintained at a level of -5% YoY despite
lifestyle changes concomitant with increased
opportunities to go out.
・We continue to experiment with the development of new
subscriber acquisition methods.
Increased slightly from the end of 1Q
・ ARPU was maintained at a level of -5% YoY despite
lifestyle changes concomitant with increased opportunities
to go out.
・Subscriber decreased slightly YoY.
In 2Q, the churn rate gradually improved compared to
1Q, resulting in a net increase of about +1,000.
・ ARPU was maintained at a level of -6% YoY despite
lifestyle changes concomitant with increased opportunities
to go out.
・Sales increased QoQ reflecting seasonal factors.
The overall trend, however, is seen to be
downward in the post-COVID-19 environment.
・Whilst profits continued to see an YoY decline
owing to such factors as inflation, helped by pricehikes, 2Q saw a quarterly return to profitability.
・The EC Support business continued to grow on
membership increases.
・The Nursery School Wholesale business has
implemented measures to expand the business partner
base as well as to develop meal kits for commercial use.
・Hong Kong and Shanghai continue to develop localized
products and services*Segment profit of Purple Carrot, and other businesses differs from the segment figures in the Financial Results
due to the deduction of goodwill amortizations and the impact of Earn-out.

10

Business segment
Results Overview
Sales

55.45
Other
Businessbn yenSegment profits

9.5％

Segment costs

Purple Segment profits- 1.0％ Segment costs
Carrot*1
RadishBoya

Segment profits

Daichi

Segment profits

13.5％

Segment costs

Segment costs

19.3％

Total segment costs

48.61bn yen

Total
Segment profits

6.84

bn yenCompanywide fixed costs

4.85bn yen

Segment costs

Segment profits

Oisix

13.4％

（Of depreciation andamortization
Segment costs posted)**

0.78bn yen

EBITDA

2.77

Depreciation and amortization

1.10bn yen Operating Income
bn yen1.67*Purple Carrot's segment profit represents operating income. (Cost includes labor costs and the company’s fixed costs.)* * Includes depreciation and amortization related to business in segment costs
In calculating EBITDA, the amount is added back and calculated.

bn yen11

1-2. Strategy and Progress
・ Domestic B2C Subscription Strategy
・ Green Shift Strategy

Strategy and Progress
Our strategy is to work on a set of priority themes each half year.
1H: The highest priority on improve profitability in new Ebina Station (new distribution center).
2H: Resumption of growth investments such as promotions
Entering profitability：With the recovery process from trouble-related deterioration in earnings completed in the 1H,
we now anticipate steady improvement to logistics as well as reductions to CoGS in the 2H.We are transitioning
into a profitability improvement phase with ramp-up of the Food Rescue Center and progress in reassessmentof optional services.
Strengthen value proposition ：Using product/service value propositions as a base, in the 2H we have resumed promotional growthinvestments for the post-COVID-19 environment.

Recent progress

Strategy of 2023.3

Improvement of profitability

１With the recovery process relating to problems at ourlogistics center complete, we are increasing profitability.
✓ Steady progress is being made in reducing logistics costs
which have now recovered to levels prior to relocation.
✓ Food Rescue Center begins full-scale operations

２

Muscularization as a countermeasure against rising raw
material prices and inflation✓ Evolution of flat-rate option services
We are offering high-value-added services.as a response to
the post-COVID-19 environment and inflation.

of the new distribution centeras a top priority

1
H

Raw material price hikes, inflation,
AfterCOVID-19, etc.
Swift response to changes in theexternal environment

３✓ Via supervised courses by Harumi Kurihara and Otasuke Oisix,
we provide new value propositions.

2
HEntering profitability
improvement phase,resumption of growth investments
such as promotions, etc.

4

We have resumed promotions with new products andnew customer enticement methods developed in the 1H.
✓ We have started offering two TV programs featuring idols
20th Century and DAIGO as well as new advertising utilizing
AKACHAN HONPO stores and apps.

13

① Enhance profitability
Profitability Recovery from Ebina Troubles
Regarding improving profitability following issues related to relocation of distribution centers, plans areunderway to reduce costs within 1H to levels prior to problems.
In 1H, logistics costs, which had deteriorated roughly 2 ppts at the beginning of the fiscal year, recovered tothe cost structure prior to relocation. In the 2H, we anticipate transition into a net improvement phase.

-Oisix Distribution cost reduction
2022.3Aug.
NewDC

2024.32023.3Jan.
Trouble1H

Recovering from Problems andImproving Profitability

2H✓ Logistics costs, which had deteriorated
by 2ppts as of end-March,
Recovery to cost structure before relocation

・・ By implementing the planned measures
to improve profitability, andRecovered from worsening cost-structureof approximately 2pt during the 1H

Increased relocation
preparation costs

End ofMar.

Cost structure deterioration( about 2 ppt) eliminated.

・・ Consolidate and return satellite centers・・ Shorten line operating hours
・・ Increase ratio of direct employment

Previous level
1ppt
improvement（forecast）

Completion of recovery from relocation problems① Recovery of service quality, including missing item rates② Execution of measures to improve profitability

Profitability
improvement phase✓ 1-ppt improvement planned forthe second half of the next fiscal year
・・ Improve workability by optimizing
picking by shipment frequency
・・ Efficiency by increasing shipments（pt：Oisix Segment Sales Ratio）

14

① Enhance profitability
Full-scale operation of Food Rescue Center

Food Rescue Center, which conducts product manufacturing designed to enhance the value of formerly
discarded foodstuffs, is now in full operation.
By increasing efficiency in manufacturing/procurement, we aim to incrementally achieve a roughly 3%
reduction to CoGS (vs. FY3/2022).

- Food Rescue Center- Kit manufacturing plant

Example of conventional food loss
- good harvest- Uneven shape

At a centre specializing in manufacturing by changing
the functions of old Ebina Station

Cost improvement about 3%in stages by 2025.3✓ We are able to make good use of bumper crops and- Unused foodstuffs

Examples of Application

Speedyprocessing andvalue-added

foodrescue▲Meal Kit Ingredients

unused foodstuffs via proprietary
food texture/preservation control knowhow.

✓ Extension of quality guarantee deadlines made▲Hard skin of onion▲Frozen to maintain freshness

possible via packaging and other technologies.

✓ Acceleration of in-house processing▲Paprika with scars

via expansion of manufacturing capacity.

▲Eggplant stem

▲Upcycle Products15

② Measures to combat raw material
price hikes and streamlining
Evolution of flat-rate option services

We hope to achieve improvements to both improvement in earning power and LTV with a user friendly renewalof services that includes adjustments to prices of flat-rate optional services,enhancement of product lineup, and launch of a website dedicated to service users only.

-Flat-rate optional service (formerly Prime Pass)
Value Enhancement✓ Strengthening lineup
Mainly daily items (milk, eggs, etc.)
at a flat rate Unlimited service to select 3 items
a week・・New products, plant-based foods, etc.
Added to target products✓ Bargain site exclusively for service users
・・Can purchase vegetables and fruits
at a good price Opened a limited site forusers of optional services

Price revision✓ Due to rising prices for raw materials and other products,
Optimize monthly optional services

improvements to both improvement inearning power and LTV
16

③ Offering high-value-added services
Polish our specialty of products and services

Steady growth was seen in the number of registrants for the Kurihara Harumi-supervised course and in thesales volume of Patto Oisix, which are completed in range cooking and 1step cooking.
Maintain high demand through value propositions in line with changing lifestyles, such as increased
opportunities to surround the dinner table and the establishment of 1-person lunches for remote work.

-supervised Course by Harumi Kurihara✓ The "carefully prepared with a little time andeffort" taste has been well received by 17,000
people who have registered.
New series to be launched in Nov.

-Patto Oisix✓ By expanding the series of vegetable-rich frozen
foods
Developed about 50 types of products since the startin Feb.

17

④New promotions

NEW

Accelerate acquisition of new customers throughTV program broadcasting

Started offering to a TV program featuring 20th Century, who appeared in a commercial in Feb.
The program is about cooking food loss ingredients.
In addition to creating a market as a front-runner in the food x sustainability field, we will accelerate
subscriber acquisition in the second half of the fiscal year as initially planned by improving brand recognition.
-Promotion featuring 20th Century
May /2022

TV commercial airing

Feb/2022

Collaboration Kit sales✓ Awareness expanded through ongoing measuressince CM in Feb✓ Subscriber registration continues to increase as aresult of the commercial.

Nov /2022～
Tapping into the popularity of the idol group 20th Century,
the decision has been made to broadcast the sustainable
food variety program “Delicious! Loss Meal Restaurant."
Starts airing weekly✓ We aim to expand brand recognition and position
ourselves as a frontrunner.

✓ Collaboration meal kits prepared for 13,000
meals sold out

TVCM※Every Thursday from 10:57pm -18

④New promotions
Utilization of Customer Attraction
Method Developed in the 1H

In addition to conventional web advertising, we are developing new customer acquisition methods that
include leveraging of offline customer contact points made via our alliance with AKACHAN HONPO.
Develop and evolve new promotional methods, including launching DEAN&DELUCA collaboration Kit andother products that are popular with established customers.
-Alliance with AKACHAN HONPO✓ AKACHAN HONPO in-store and through the app"Oisix with AKACHAN HONPO" to attract customers.
Identified issues with in-store guidance andstrengthened collaboration.
✓Understand issues in-store guidance and continue
to strengthen collaboration-PR for DEAN & DELUCA
collaboration products✓ Sales of DEAN&DELUCA (operated by affiliate
Welcome) sample sets that include meal kits andenable home-made delicatessen were strong.
✓ Leveraging products popular with existingcustomers as an enticement tool, orders from
customers hitherto inaccessible are now increasing.

191-2. Strategy and Progress
・ Domestic B2C Subscription Strategy
・ Green Shift Strategy

Growth strategy

growth strategy“Leveraging the power of the business model and technology
to provide food that is good for both people and the earth.”

Sustainable Retail21

Using Business Models

Using business models and technology

Using Technology（Re-investigation：2022.3 2Q）
Stable demand throughsubscription model✓ Utilizing food loss
in the field✓ Promoting
sustainable production

Sale

Produce
Crop condition
data for 4,000
houses nationwide.

Agri-tech and otherstate-of-the-art
production
technologies.

Optimal supply/demandmatching using proprietaryalgorithms

CVC to invest in the future of food

✓ Food loss reduction via
services that eliminate
raw ingredient surpluses.
✓ Expanding awareness ofvegan food.

Purchase data ofroughly 450,000
customers x 52
weeks.

Eat

Alternative protein being one
example, we see expansionof a new food culture.

Realization of zero food loss and carbon neutrality
22

Business Model Features
We accelerating our efforts to achieve further reduction in GHG emissions and food waste that are
already low given the characteristics of our business model.
We continue to provide services and products that contribute to sustainability.
Recognition of sustainable activities by customers exceeds 75% for all brands.
②Carbon Neutral①Zero Food Waste✓ Supply and demand are matched using a subscriber
model and a proprietary algorithm. Food waste in the
distribution process is as low as approximately 0.2%.
✓ Strengthened food loss reduction services
at production sites, reducing food loss by 160 tons
in the first half of the year

✓ Through a simple distribution channelsLow GHG emissions
compared to averages for brick-and-mortar retailing✓ Sales of low pesticide use and additive-free are characteristics
of our environmentally friendly food products.

- CO2 emissions per sales(including all of Scope 1, 2, and 3)- Weight of food waste reduction in fields

Physical Retail Average*
Our company’s
emissions areabout 50% lower
than those of other companies.

CO2 Emissions from
Organic Products
emission reduction into
the logic.

As is FY2022.2Q
As is FY2021.2Q

40t

＋120t
In this a year

160t

Foodwaste
Reduction

FY2020

FY2022～

Over 75% awareness of sustainable activities*We calculated the average of five companies that disclose information on CO2emissions in Scope 1, 2, and 3. Sales of each company are calculated on aconsolidated basis for the relevant fiscal year (based on our research).

23

①Zero Food Waste
Strengthen development of services andproducts that reduce food waste.

Users of food-waste reduction services are increasing with Otasuke Oisix registrants numbering
35,000 and the utilization rate of fuzoroi Radish exceeding 70%.
Further, by strengthening development of kits using hitherto neglected food items, we provide users
with the opportunity to cut food-loss without sacrificing taste.
Going forward, we look to accelerate development of products using hitherto neglected food items via
FRC operations.
- Otasuke Oisix✓ Responding rapidly to climate
disasters,Friendly to households
and contributing to reductionof food loss

- fuzoroi-Radish- Meal kits with
underutilized ingredients✓ Specializing in non-standard
agricultural and fishery products
and processed into prepared foods, etc.

✓Meal Kit for easy enjoyment ofpreviously unavailable ingredients24

①Zero Food Waste
Expand awareness of Upcycle by Oisix
To expand brand awareness of “Upcycle by Oisix,” we are conducting joint product development with foodcompanies and students among others. We are also accelerating expansion of external sales.
Since the service was launched in Jun. 2021, we have rapidly developed original products from 2 to 29,
Contributed to a 60-ton reduction in food waste.
Collaborate with companies andstudents to develop products

Expand external sales
NEW

NEW

25

②Carbon Neutral
Visualization of CO2 emissions by cultivation method

Organic and low pesticide farming methods practiced on crops handled by our company emit less CO2 thanconventional farming methods. It has been quantitatively confirmed that CO2 emissions of mainly fruits andvegetables are significantly lower than those of conventional farming methods, ranging from about 50% to 0%.

CO2 emissions
from agricultural crops◆ Results of the Demonstration Experiment
CO2 emissions compared
to conventional farming
methods

conventionalfarming
methods

Visualization of CO2 emission
reductions in cooperation
with the Ministry ofAgriculture, Forestry and
Fisheries of Japan

Organic and low
pesticide farming
methods

44%

Producer A

12%Producer B

0%

Proof that CO2 emissions are significantly
lower than conventional farming methods
due to reduced use of pesticides, fertilizers,
and agricultural materials, as well as the useof "biochar
26

②Carbon Neutral-Sustainability Promotion Measures
In the name of sustainable retail, we have implemented further measures to reduce plastics-use andcompleted a switch to renewable energy sources for electric power.

-Kit Oisix packing material measures toreduce plastics-use✓ Switch packaging materials
and reduce plastics by 22% per year-completed a switch to renewable energy✓ Switch electricity from all distribution bases andoffices to renewable energy（Oisix ra daichi only）✓ Review of the thickness of the BioPath plastic outerbag(Jun.2022~)✓ Contribute to annual reduction of 3,852 tons of CO2
emissions (compared to FY2019)✓ Review of individual vegetable package size (Jun.2022~)✓ Elimination of vegetable clips (Mar.2022~)
内容・調理時間27

1-3. Business Segment Summary

Oisix KPI
Subscribers：Subscribers is on a recovery trend compared to 1Q non-consolidated,with a net increase of about +5500 in 2Q

ARPU ：Continued to exceed initial forecasts, up +12% from the pre-COVID-19 (-5% YoY),
and remained at a high level compared to the pre-COVID-19 level.
Subscribers

ARPU

11,892355,962（ YoY + 2％）

yen2023.3（ YoY - 5％ , vs 2020/3 +12％）2022.3 （Previous period）

2020/3（3 years ago<before-COVID>）
347,772***

345,409 346,083

355,962

350,650

333,850

12,891
308,899

12,88012,564
12,166285,168
274,929

12,302

11,892

252,303

11,745
11,379

11,095
10,6342021/3 2021/3 2021/3 2021/3 2022/3 2022/3 2022/3 2022/3 2023/3 2023/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

1Q

2Q

3Q

4Q

2Q

* 2022/3 In Q2 and Q3, we implemented cancellation procedures for customers who order very infrequently.
The number of subscribers decreased by approximately 10,000 in the Q3 cumulative total, with almost no impact on sales.
** 2022.3 Q4 Lost approx. 15,000 subscribers due to trouble during move to new distribution center

29

Oisix KPIKit Oisix Course subscriptions (included in Oisix subscriptions) grew 14% YoY driving growth in overall

No. of Kit Oisix course subscribers*

238,497（ YoY◆Features of Kit Oisix
You can make one main and one side dishes✓ in less than 20 minutes(Includes Oisix subscribers)

5 or more kinds of vegetables✓ Usescollected from contract farmers.

+14％）
238,497

209,964

217,680

226,710

231,831✓ Reducing food loss by using up all
ingredients

198,821
181,930
156,416

163,496

140,934

2021/3 2021/3 2021/3 2021/3 2022/3 2022/3 2022/3 2022/3 2023/3 2023/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

*From 2022/3, “Chanto Oisix course" will be excluded from the number of Kit Oisix course subscribers.
*The number of meal kit Oisix subscribers including Kit Oisix course and "Sakutto Oisix course.

30

Daichi KPI
Subscribers ：Continue to prioritize the creation of products and services aimed at acquiring
new subscribers, up slightly from the end of 1Q
ARPU ：Continued to exceed initial forecasts, up +5% from the pre-COVID-19 (-5% YoY),
and remained at a high level compared to the pre-COVID-19 level.
Subscribers

ARPU

44,092

22,192yen（YoY - 3％）（ YoY - 5％ 、vs 2020/3 +5％）2023.32022/3（Previous period）
2020/3（3 years ago<before-COVID>）

43,94145,730 45,534
44,878 44,998 45,307 45,196 45,394

43,955 44,092

24,07923,251

23,02522,192
22,391

21,72821,986
21,604
21,15920,8212021/3 2021/3 2021/3 2021/3 2022/3 2022/3 2022/3 2022/3 2023/3 2023/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

2Q

3Q

* ARPU=Average Revenue Per User

4Q

31

Radish Boya KPI
Subscribers ：Approximately +1,000 in 2Q. Churn rate improved compared to 1Q.
ARPU ：The frequency declined due to the revision of delivery fees implemented in Mar.,but the unit price improved.
ARPU was maintained at ▲6% YoY (+3% versus pre-COVID-19)
Subscribers

ARPU

66,23018,461 yen
2023.3（ YoY - 6％ 、vs 2020/3 +3％）

（YoY - 0 ％）2022/3（Previous period）
2020/3（3 years ago<before-COVID>）

65,32062,51561,822

61,51866,464

66,20665,09365,297 66,230

62,751

20,18820,137
19,74818,947

19,65918,79018,461
18,621
18,202

17,9262021/32021/32021/32021/32022/32022/32022/32022/32023/32023/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

2Q

3Q

* ARPU=Average Revenue Per User

4Q

32

Purple Carrot＜U.S. ＞

Subsidiary※Purple Carrot shows the businessperiod from Jan. to Mar of 2022.

May, 2019~

Sales continued to decline due to the impact of After COVID-19.
Income turned EBITDA profitable on a non-consolidated basis in 2Q.
Despite a loss forecast for the full fiscal year, the company plans to improve profitability and prepare
for business expansion in the next fiscal year.
Quarterly results（$mn）

Strategy Progress① Price optimization and shipping bar revision（May,2022～）
Sales

summary

Sales decline
After COVID-19

EBITDA✓ For roughly 10% of product price increases,
the shipping bar was revised.

EBITDA ratio

situation

27✓ The churn rate did not worsen and our profit
structure improved.

24
23

Consolidated

22

22

21

22

Inflation impact,
Subscriber decrease
EBITDA ratio
Rapid deterioration

15

8.7%

14.0%

Price optimization
2Q Non-Consolidated
Return to profitability

12.6%
8.6%

1.0%

1Q

2Q

3Q

2019.12

4Q

1Q

2Q

3Q

2020.12

4Q

1Q

2Q

✓ On the other hand, until subscriptions improve,
fixed costs remain a high burden.

② Operational Excellence in the Logistics Process

18.7%
11.6% 10.8%

19

20

3Q

2021.12

4Q

2.3%

▲0.9%

1Q

summary（May,2022～）✓ The Japanese business manager arrived
at the site in May, and we are building a management
structure able to quickly address management issues
including that of logistics.
situation

2Q

2022.12✓ Via employment of logistics specialists,furnishing of domestic logistics know-how and thoroughimplementation of temperature control,
claims regarding delivery quality were reduced.

33

マスター タイトルの書式設定

2. Business Portfolio Expansion

Business Portfolio（B2C Subscription）
In the B2C subscription food delivery business, we are the rare entity in the world that implements
numerous brands both domestically and overseas. Annual GMV in the domestic B2C subscription businesshas reached ¥120 bn. Going forward, we aim to use that as a base from which to achieve continuous
organic CAGR growth of 10%+
-Expansion of a subscription modelin the distribution industry
Domestic

B
2
C

１
Domestic
B2C
Subscriptions

Overseas２

１ Domestic B2C Subscriptions

CAGR of・Total distribution amount
Sales-based distribution amount ・Number of subscribers

About1,200bn yen*

OVER +10%

Overseas
B2C
Subscriptions

３

B
2
B

Domestic
B2B
Subscriptions（他社EC支援）（他社EC支援）

２ Overseas B2C Subscriptions
Hong Kong

Shanghai* 2022.3期実績

35

Business Portfolio Expansion
Addition to the domestic B2C business growth, we will add “Domestic B2B Subscriptions” by applying our
know-how of subscription food delivery model, and “Next generation food” by leveraging our productdevelopment and manufacturing capabilities to our business portfolio to aim for discontinuous growth.
Domestic

Overseas１２

Distribution

Domestic
B2C
Subscriptions

B
2
C

Overseas B2C
Subscriptions

３ Domestic B2B Subscriptions✓ Regular delivery of food ingredients andcommercial meal kit to kinder gardens and

３
B
2
B

senior care facilities
Domestic
B2B Subscriptions✓ Model that continues to offer different

Wholesale of foodingredients for facilities

menus to the same customers

3

Business collaboration
with SHiDAX

Manufacturing

４

４

Next generation foodNEW

Next generation food
(Food tech)✓ Manufacture and B2B/B2C sales ofsustainable food by leveraging food tech.

(Food thech)

3

Manufacture/sales ofalternative protein（e.g. Alternative meat, egg)
Development of food tech industry✓ Utilize our expertise in product developmentthat places utmost emphasis on deliciousness.

36

2-1. Domestic B2B Subscription

DomesticB2C Overseas B2C

school lunch market overview
and our strengths

DomesticB2B
Next generation foodOf the B2B subscription market, the school lunch market which includes wholesale of food ingredients tochildcare facilities, is large at roughly ¥4.5 trillion. By leveraging our knowhow in the B2C subscription
business, we aim to provide solutions to issues in the school lunch market and thereby drive further sales
growth under new business segments.
-Market Overview-Synergies with existing businesses✓ Large and stable market,
worth ¥4.5 trillion as a whole.
✓ Market shrank temporarily due to COVID-19,
but is recovering.

overall school lunch market （2021）

About 4.5tri yen*

Hospitals, the elderly, and Nursery school

About 2.3tri yen*

Nursery School Only

About 0.2tri yen*◆Social Issues✓ Measures against excessive labor due tohuman resource shortages✓ Market environment with intense pricecompetition, making it difficult to increase
profitability

×◆our strengths✓ Delivering varying menus to customers every
week. High operational capabilities borne fromstrong affinity with the school lunch business.
✓ Procurement network/manufacturing capacity
built on the B2C subscription business.
・Direct procurement from roughly 4000 producers nationwide.
・Green Procurement Initiatives (Organic and Low Agrochemical
Vegetables, Food Rescue).

✓ Digitization skills
38

DomesticB2C Overseas B2C

Nursery School Wholesale（suku-suku Oisix）

DomesticB2B
Next generation food

The number of trading nursery school with which the company does business has increased to 734, andthe company will begin test sales of "Commercial Meal Kit" in June to build up its services.
The company aims to achieve sales of 10 bn yen within 5 years (by FY2027.3) by reducing the workload ofmeal preparation and providing value.
Nursery School Wholesale（suku-suku Oisix）✓

No. of trading nursery school

734

Entrusted with the entire meal preparation process

menu

Purchasing

0.67bn yen
YoY2022.3Full year

0.96

0.91＊

Nursery School
1.20
1H

0.67
2019/3＋+15％

1.20bn yen

0.78

Packaging andshipping

10 bn yen
within 5 years (by FY2027.3)

Sales
2023.3 1H

Commercial
Meal Kit

Order

2020/32021/32022/32023/3
1H・・・
2027/3✓

Manpower Shortage
Countermeasures✓

Differentiation fromneighboring facilities

Children✓

Improvement of picky
eaters and support for
nutrition education*In the 2021/3 period, the nursery school was closed one after anotherdue to COVID-19, resulting in an irregular decrease in sales.

39DomesticB2C Overseas B2C

Acquisition of shares in SHiDAX CORPORATION
and Consider collaboration

DomesticB2B
Next generation food

Via tender offer, the acquisition of shares in SHiDAX CORPORATION, announced in June, was completed in
Oct. Going forward we look to utilize the assets of both companies to contemplate collaboration in the foodand social service businesses among others.
◆Before stock acquisition◆Present
SHiDAX

SHiDAX
stock holdings(28％)
Oisix ra daichi

SHiDAX Founder

SHiDAX Founder

Oisix ra daichi
stock holdings(27％)

Shareholder
Agreement¥8 billion

Unison Capitalper Shareholder Agreement+

Purchase on the market

Unison Capital¥400 million

Decrease in shares held
27％ → 0％

Unison Capital
Unison Capital*Part of the funds will be allocated through borrowings✓ Since 2019, Unison Capital has participated in the
management of SHiDAX and promoted the implementation ofmanagement reforms. Unison Capital holds preferred stock(Preferred Stock Class B: 4.0 billion (equivalent to 27% afterconversion of common stock), Class C: 2.5 billion)✓ The founding family of SHiDAX exercised its right tosell SHiDAX shares with Oisix ra Daichi as the transferee
under the Shareholder Agreement. At the request of
Unison Capital, the TOB was the acquisition method
chosen for execution.

✓ The founding family of SHiDAX and Unison Capital reacheda "Shareholder Agreement" that included the right to exercise
sale of the company.

✓ TOB was completed on Oct. 25. Acquired all 27% of
SHiDAX common shares held by Unison Capital for ¥8.4
billion (¥541/share) as per Shareholder Agreement.

40

DomesticB2C Overseas B2C

Share acquisition of SHiDAX
and collaboration

NEW

DomesticB2B
Next generation foodSHiDAX and ORD has started the discussion in preparation for the establishment of a Special Committee in SHiDAX.
Business segments executives from each parties are discussing potential collaboration areas to realize businesssynergies in the food business segments as a 1st step of the collaboration between SHiDAX and ORD
SHiDAX

Oisix ra daichi・ Network of 4,000 producers
nationwide that enables stable supplyof high-quality food ingredients・ Utilizing B2C subscription knowledge
and manufacturing commercial meal kits
・Digitization skills

・More than 60 years of industrial foodservice know-how since its establishment
・Hospitals, senior care facilities, schools,
childcare, etc. Wide range of food service
business
・Network of approximately 1,800 facilities
in operation◆Direction of collaboration discussion in the food area
Meal kits for commercial use, Improving
productivity andvalue addition at Food services sites

１ Prepared food using safe and secure ingredients areStrengthen added value in the sustainable field
Strengthen added value through efforts to reduce food２ losses. Develop meal menu utilizing vegan menu andsustainable foodprovided to nurseries and senior living communities

３

Joint procurement and delivery
of food ingredients
Strengthen purchasing power of high-quality
food by leveraging stable ingredients needs ofSHiDAX and ORD

４Food service for discharged patients
Offering easy and healthy meals to discharged
patients

By January-end, we aim to compile a list of potential business collaboration
initiatives beginning with those ideas having concrete footing.
41

2-2. Innovative Products

Entry to next generation food
manufacturing and sales business

DomesticB2C Overseas B2C

NEW

DomesticB2B
Next generation foodEntering growing next generation food manufacturing and sales business to realize “Sustainable Retailing”.
Especially Aiming for creating domestic market for alternative protein market where rapid market expansion
is expected-Alternative protein market overview✓ A market that promises rapid growth alongwith world population growth✓ As a result of COVID-19, interest in alternative
foods has risen and market expansion has
accelerated

Alternative protein market size trend (est.)-Synergies with existing businesses◆Social Issues✓ In addition to conventional food products,
sourcing of sustainable food is a must
✓ There are few alternative food products that
pursue deliciousness and they are not readily
accessible.

×

3.3

3.0

◆our strengths

1.00（T JPY）✓ Marketing know-how to expand new food culture
such as Meal Kit

1.2

2.0

0.4
2020

✓ Know-how on product development andadjustment of seasonings that suits Japanesefood culture

0.5
・・・
2021

・・・
2025
（Est）

2030
（Est）

✓ Relations with customers who are sensitive tothe latest food trends*Manufacturer shipping value basis

43*出展：矢野経済研究所「2022年版 代替タンパク質 ＜代替肉（植物由来肉・培養肉）・昆虫食＞の将来展望 ～フードテックが解決する持続可能な食の未来～」

DomesticB2C Overseas B2C

Next generation foodNEW

DomesticB2B
Next generation foodExpanding business portfolio to “Next generation food” including alternative protein market by leveraging food tech.
Aiming for further growth by creating new market demand of next generation food by supplying to offline channelsuch as supermarkets, restaurants and hospitals in addition to online✓Marketing know-how to expand new food culture✓Direct contact with customers and product development capabilities- Online
Overview

Plan- Offline（Real）

Offering varieties options⇒ Deliver ingredients, meal kit, pre-cooked dishOverview

Creating opportunities to try
Sustainable foodat Oisix as a first step⇒ supermarkets, restaurants and hospitals✓ At reasonable price range✓ Good taste✓ Easy to use（e.g., pre-cooked dish）✓ Flexible to cooking methods

Launching first product mid December✓Global No.1 Food player✓Active investments to innovative foodPlanStart B2B sales during this fiscal year

Started the collaboration with Nestle Japan to develop
next generation food that matches Japanese lifestyle44

マスター タイトルの書式設定

3. ESG Topics

Promoting the reduction of consumer
problems among the elderly
Utilizing Tokushimaru, a mobile supermarket platform, we are participating in the Consumer Affairs
Agency’s “Advanced Model Project on Local Consumer Administration.” Launched a survey on consumer
issues faced by the elderly.

Mainly customers around 80 years of age
・Regular visits twice a week・"watch activities" of customers in
addition to face-to-face sales

・Consultation on daily life
・Consultation on consumer problems

Studies on consumer issues faced by the elderly have been initiatedand in tandem with the Consumer Affairs Agency,
we are promoting measures to address such issues.
46

WeSupport Family
We operate “WeSupport Family” which is a food support platform for children's distressedfamilies.Our support started from 2021 and the number of support households has greatly
increased to 90,000 households.
In addition, food aid for Ukrainian displaced persons visiting Japan has begun this year.

Food support platform for poor householdswith children, mainly single parents.

Amount of donations(cumulative)

2.7bn yen

Recipient of
supportFood support for Ukrainian evacuees coming to Japanthrough the WeSupport platform✓Provided food for approximately
1,500 evacuees from Ukraine

90,000households（2022年11月4日時点）

47

マスター タイトルの書式設定

APPENDIX・DATA SHEETCompany Profile and Financial Results

Corporate Overview

Name：

Oisix ra daichi Inc.

Location：

Shinagawa-ku, Tokyo

Established：

June 2000

Representative：

Kohey Takashima, Representative Director & CEO

Capital：3,994 mm yen

Employees：

986 (consolidated), as of the end of March 2022

50

Overview of Affiliates

Oisix radaichi

Subsidiarycompany

Percentage ofShares Held

Main Businesses

Tokushi-maru

90％

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

Fruits Basket

100％

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

Karabiner

70％

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

Crazy Kitchen

100％

Handles catering, event production, and space production
businesses.

Oisix Hong Kong

100％

Operates our businesses in Hong Kong under contract.

100％

Operates the food products home delivery business in China.

100％

Overseas investment business100％

Meal kit delivery service in the United States

100％

Investment business for food-related startup companies

Future Food Fund No.1
investment limited partnership

10％

Investment business for food-related startup companies

Toyosu gyosho sanchoku ichiba(Toyoichi)

51％

Wholesale sales of marine products mainly for the
food service industry

Nihon Agri

34％

Exports agricultural products.

DEAN & DELUCA

20％

Lifestyle business through retail and restaurant businesses

Yutori no kukan

20％

Recipes and product development by chefs Harumi Kurihara
and Shinpei Kurihara

Oisix Shanghai
Oisix Inc
Purple Carrot
Future Food Fund

Main
Affiliates

51

Growth Trajectory
The Company has been built and rapidly grown on Oisix with mergers with Daichi wo
Mamorukai and Radish Boya. Steady progress in overseas expansion with the acquisitionof the U.S. Purple Carrot
May 2019
Three Limes, Inc.
(also known as Purple Carrot),a U.S. company, became asubsidiary

October 2018
Merged with Radish Boya
February 2019
The operator of DEAN &DELUCA JAPAN became anafflicted company

Sales
EBITDA*

113.4
100.0
8.9

August 2013
Formed a business and capital alliance with
DEAN & DELUCA Japan (current Welcome Co.,
Ltd.)

October 2017
Merged with Daichi wo
Mamorukai

71.0

89
6.2

May 2016
Tokushimaru, which operates amobile supermarket business for
elderly customers, becomes a
subsidiary of the Company

March 2013
Listed on TSE Mothers

14.6

0.9

2013.3

15.9

20.2

18.1
0.9

2014.30.8
2015.31.0

2016.3

62.5*

40.0
3.1*

23.0
1.0

2017.3* EBITDA＝Operating income＋
Depreciation and amortization＋
Goodwill amortization

3.5

1.7

2018.32019.32020.32021.32022.3＊ Due to a change in the consolidated fiscal year, 2019.3 includes one extra
month (4-months in Q1 resulting in 13-months total). For the purposes of like-forlike YoY comparisons, one month of Radish Boya data (March) was deducted.

52

Subscription subscriber numbers
457,000
417,000
65,00062,800Oisix

334,600

Daichi wo Mamorukai

309,700

Radish Boya

57,40045,50045,30063,50037,200214,700

40,20045,000308,900

346,000

137,300
240,000

111,000
206,000
82,10096,700169,700

74,0002013.32014.32015.32016.32017.32018.32019.32020.32021.32022.353

In the domestic B2C Subscription business
Strengths of Business Models

Our Business Model
Our main business is safe and secure foods that are carefully selected based on our own standards,
Subscription-type food EC-commerce business delivered to approximately 460,000 households
throughout Japan

Producers

Oisix ra daichi

consumers

fruit and vegetable producer
Approximately 4,000
households nationwide

Domestic Delivery business

About 460,000 people

Oisix
Daichi wo
Mamorukai

Radish Boya
Other Business・EC support
・Mobile supermarket business（Tokushimaru）
・Overseas Home Delivery
・Store business（Shop in Shop）
・Nursery School Wholesale
etc.

Regular delivery

Procurement

Manufacturer(Oisix、Radish Boya 、Daichi、3 brands total)

55

Our Subscription Model
Holds asset know-how specializing in consistent food × subscription home delivery

Producers

consumers

Oisix ra daichi

Oisix

With Producers
Direct Network

Daichi wo
Mamorukai

Regular delivery

Procurement

Our Strengths

１

Radish Boya

2

Subscription
Marketing3

One of the largest in Japan
Food x Subs distribution center and meal kit manufacturing plant56

① Direct network withproducers
Direct transactions with about 4,000 producers nationwide without going through markets or intermediate
distributors.
Able to secure high-quality producers with high price stability and cultivation technologies
Typical distribution of agricultural products

Consumers

Retail store

Wholesale market

Purchase prices
vary widely withproduction
conditions.

Inability to control
purchase volumes
and prices due tomarket conditions

consumers

Oisix ra daichi

Advance purchase commitment
with 3-to-6month notice based on
specified product types,
quantities, timing, and prices

Agricultural cooperative

Producers

Strengths of Direct Transactions

Revenue prospects
unclear due toprice variations
resulting frommarket conditions

Producers

Purchase at stablepricing regardless ofmarket conditions
Facilitating demand
control/projections throughsales plans based on
projected supply volumes
An outstanding grower
with high cultivation
technologies through many
years of business
Secure approximately
4,000 producers

Clear revenue projections toback sound investment
decisions57

② Subscription Management
Introduced "Subscription management Accounting" which accurately measures the profitability per orderand per customer,
Building a Sustainable Profitable Subscription Model

Rigorous CPA and LTV management
Setting a period to recoup CPA and rigorously
managing CPA within this range

Rigorous managementof unit revenues and expenditures
Making percentages of loss-making deliveries visible
for each unit and reducing them structurally

Building a sustained profit stream
ProfitCPA
recovery
periodProfit LTV

Price
per
purchase

Profitabledeliveries

0
Time
CPA

CPA: cost per acquisition
Profit LTV: lifetime acquisition value

Loss-making
deliveries
sbscribers

58

③ Support food x Subscription
Distribution center and meal kit production plant

Able to operate 1 of the largest domestic distribution centers and meal kit production
plants of Food X Subscription, maintaining a level of quality control

One of the largest in Japan
Food x Subscription
distribution center・・Through strict temperature zone
management specializing in foodproducts, can maintain freshness
until delivery✔ Maximum shipment：220,000/week✔ 24 hours a day, 365 days a year
temperature, refrigerated,✔ Roomfrozen, and vegetable
Strict temperature zone control

Uniquely developed
Sales and inventory system

Meal kit production plant

・・With our proprietary sales andinventory system, reduce loss
ratio and achieve high inventory
turnover

・・Rapidly growing original meal kit
Owned in-house plants with raw
material processing and asset
functions for 「Kit Oisix」✔ product loss：about 0.2％

shipment：✔ Maximum
320,000set/week（Retail Store Average：5～10%）✔ Number of manufacturingmenus per day：50type✔ HACCP acquisition

59

Domestic B2C Subscription Business Details

Differences in the assetsof the three brands

How tojoin

WEB mainly

How toorder

WEB mainly

Logistics
bases

1 placein Kanagawa

Last One
Mile

Yamato trucks
about 99％

WEB/
door-to-door sales

WEB/
Paper catalogs/
TEL

4 placesin Hokkaido,
Tokyo, Kanagawa,
Osaka.
Our trucks
about 95％
（area around
Logistics bases）

WEB mainly

WEB/
Paper catalogs/
TEL

1 placein Chiba

Our trucks
about 80％
（area aroundmetropolitan area）
61

What Our Three Brands Deliver
Based on the distribution of safe, reliable food products, each of our three brands delivers products
tailored to the lives and values of our customers.
Two-worker householdswith small children

Households who want toenjoy cooking

Senior householdwith two people

Meals that can be boasted
without taking time

Contributing to Society
through Cooking

Easy feeling of health

Producers

62

Business Phase of the 3 Home
Delivery Brands
Appropriately implement business strategies in line with the business phases of each brand

Main target

Businessreorganization/muscularization phase

Product andservice creation

Business
Expansion"quick and proud" needs
Creating services for

For balancing
childcare and work
Busy working
households

・Patto Oisix

・Chanto Oisix ・Kit Oisix

・vegan Kit
I want to have ahealthy diet.
Senior householdwith two people
living together

Contributing to Society
through Cooking

・completion(FY2020/3 Q2)Service development
in line with needs
・Daichi no marugohan・completion(FY2021/3 Q4)With new values as a weapon
Transitioned to a re-expansion phase

・Palette
・fuzoroi-Radish
63

Seasonal fluctuations inbusiness performance
We have a business model in which sales and profit margins fluctuate from quarter to quarter.
Sales and profit margins improved in Q3 due to sales of high unit price products during the year-end
and New Year holidays, while sales and profit margins declined in Q2 due to the summer vacation.

- Seasonal changes in normal conditions

Sales*

Q1(4-6)

Q2(7-9)

Q3(10-12)

Q4(1-3)slight increase

Decrease

Increaseslight decrease

Increase in sales forMother's Day and otherevents Slight increase

Decrease in sales due tosummer vacation andObon vacations

Increase in sales due to
New Year holidays andyear-end sales Increase

Sales decrease due
to spring vacation
Slightly decreaseflat

aggravation

improvement

flat

Spring PR costinvestment

Deterioration due todecrease in ARPU

Improvement due toincrease in ARPU forhigh unit price products
such as Oseki

Spring season PR costinvestment (scale ofinvestment flexibly
adjusted depending on
business conditions)profit ratio*- Impact of COVIⅮ-19 Seasonal Variations
Due to the impact of COVID, seasonal fluctuations such as the impact of summer vacation are expected to be smaller
than normal in FY2021.3 and FY2022.3, but seasonal fluctuations are expected to return to normal in the future.

*Sales: Image of seasonal changes in sales assuming a constant number of suscribers 64*Profit margin: Assumption that there are no irregular cost investments

EC support
We will provide our strengths and develop businesses to support other companies' EC.
For example, we will provide subscription know-how cultivated through our domestic food delivery
business and logistics assets specialized in food delivery.

E-commerce Marketing
Operation and management of
e-commerce sites focusing on foodLogistics andDistribution
Providing assets forfood delivery

product development
Development and provision of
products that meet client needs

65

“Tokushimaru” (subsidiary)
Offering mobile supermarkets for seniors and “shopping refugees” difficult
to approach via the Internet- Revenue Model
Tokushimaru
Headquarters

Contractual fees
Royalties

Brands, expertise,
information provision

Regional supermarkets
Bases for supply of products

overview

Operating a mobile supermarket for seniors

aim

Provide value to customers who cannot beapproached through EC

13％・ Solving the Social Problem of "Shopping Refugees"
Who Cannot Go Out to the Neighborhood Supermarket
・ Strong network of customers with weekly
face-to-face sales.

Products

Product gross profits
30％
17％

Sales partners

In-person
sales

Owner-operators＋5 yen＋5 yenCustomers+10~20yen rule66

Other BusinessDomestic B2C Subscription
Overseas B2C Subscription

Overseas B2C Subscription Business

Domestic B2B Subscription

Food techHong Kong / Shanghai: Aim to establish services that meet the needs of local Chinese consumers
U.S.: Utilize management know-how in food subscription model for Purple Carrot- Oisix Shanghai

U.S. Meal Kit Market*

・ Started the service in 2017.
Grasp the needs to establish thesubscription model for Chinese
customers

$2.5
bn
USD

2017

$9
bn
USD
2025

- Purple Carrot Business(U.S.)- Oisix Hong Kong・ Launched the service inHong Kong in 2009.
Cross-border delivery ofJapanese products
・ With the spread of COVID-19
both users and sales aredramatically increasing

×・ Global expansion of vegan food x Japanesefood “Health Conscious Food” both in Asia andthe U.S.
・ Recognize consolidated from FY2020/3 Q3* Hexa Research『Global Meal kit Delivery Service Market Size And Forecast,/ByType (Fresh Food, Process Food) And Trend Analysis, 2015 - 2025』

68

Nursery School Wholesale（suku-suku Oisix）

Domestic B2C Subscription
Overseas B2C Subscription
Domestic B2B Subscription

Food tech

Provide nursery schools with unique system to order food ingredients based on lunch menus, since 2015.

Nursery Schoolmenu～shippingmenu

Procurement
packagingoverviewaimshipping- Image of nursery school

menu selection

Menu suggestions
products and food education tools

Support for nursery school facility management
for food service and food education
Fostering food awareness at an early age
Expanding awareness among parents

・ The workload of nutritionists and nursery school teachers
is reduced because menus can be ordered in bulk.
・ Confronting children's food problems. And
to raise awareness of our company among parents.
69

Domestic B2C Subscription

Shop in Shop

Overseas B2C Subscription
Domestic B2B Subscription

Food tech

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

supermarket- Image of affiliated supermarkets

products

overviewaim

Wholesale of the Company's products toaffiliated supermarkets
Expand awareness to customers who
cannot be reached online

・ By selling our products in real supermarkets, wewill expand our recognition to the segment that wecannot reach through online advertising.
・ Our products are expected to attract customers to
our partner stores.
70

Domestic B2C Subscription

Future Food Fund

Overseas B2C Subscription
Domestic B2B Subscription
Food tech

Established as a CVC specializing in Japan's first food tech, procured 2 billion from LP14 in Dec. 2020.
Invested in a wide range of new food agritec, including overseas start-up companies

Food Tech Startups

Japan's "first" CVC
specializing in food tech(Corporate Venture Capital)

Both domestically and internationally
Investing in a variety of startups
Food tech New Food

Agritech

Raised 2 billion funding from LP1471

Domestic B2C Subscription

Future Food Fund

Overseas B2C Subscription
Domestic B2B Subscription
Food tech

Utilizing our experience at the time of our founding, we will build an ecosystem of food tech that provides awide range of support by making maximum use of the platforms of operating companies that participate as
LPs, not just investment activities.
Business
cycle

Businessidea

Financing

Product /serviceconstruction

Business growth/
EXIT

Comprehensive support accelerates the speed of thebusiness growth for startups.
Utilization of various LP assets
and know-how

Collaboration and support withproven American VCs and incubators

Service experiment utilizing startup
specialty EC sales floor◆ Example
Sales

Import /Logistics

Infrastructure72

Stock-Related and Governance Information

Stock Price and Trading Value
Compared to 2018, when the 3 companies merged, the stock price grew approximately 5 times.
Trading value: Approx. 1 billion/day, annual turnover rate of over 200%
5,500
14,000,000

5,000
4,500
4,000

10,000,000

3,500
3,000

）

2,000

8,000,000（

6,000,000

1,500

million

*

yen

2,500

Trading value

stock prices（

12,000,000）

4,000,000

1,000
2,000,000
500
02017/5/16

0
2018/5/16

2019/5/16

2020/5/16

2021/5/16

2022/5/16

74

Trends in shareholder compositon
Institutional shareholdings increased to about 50%, doubling from 3 years ago.
No shareholder with overhang concerns at present

End of Mar. 2019

End of Mar. 2022
Ratio of institutional investors
49％

Ratio of institutional investors
25％

Management Member/Internal Relationships
34％

Strategic
Partners
21％

overseas
investor
14％
Domestic
Investors
11％
individual
investor
19％

Management members/company stock/
Internal Relationships
29％

overseas
investor
31％

Strategic
Partners
12％

Domestic
Investors
18％
individual
investor
10％

75

Financial Condition
・B/S

・Selected financial data
End of March 2022

（Millions）

End of March 2022

Current assets

28,514Equity Ratio

42.0%

Cash and cash equivalents

13,071

ROA

9.1%

24,119ROE

13.2%

Fixed assets
Total assets

52,634Current liabilities

15,914

Short-term interest-bearing debts

1,010

Long-term liabilities

12,847Long-term interest-bearing debt

101

Total liabilities

28,762

Shareholders' equity

21,954

Total net assets

23,872

Total liabilities and net assets

52,634

Financial leverage

2.4

Total asset turnover

2.1

Net income margin

2.4%

・ Level of cash holdings
2 year's worth of personnel expenses (including
variable personnel expenses) is set at about 10 bn yen
as a benchmark for an appropriate level of retention.

・ ROE/ROIC target level
Continuous achievement of ROE10% above theassumed cost of capital (5-6%)

76

Trend in No. of Employees
986

Ratio of female employees
915- Total- Full-time
860

66%

48%

735
680

421

210
163

2013.3179

2014.3

192

2015.32016.32017.32018.32019.32020.32021.32022.377

Directors Profile
The Board of Directors, consisting of five outside directors with variety of experience and knowledge,
actively discuss sustainable growth of the company in the rapidly changing business environment.

■Inside Directors

President and CEO
Kohey Takashima
Appointed 2000
Vice Chairmen of Japan Association of
Corporate Exectives,Director ofBenesse Holdings, Inc,Chief Directorof Eat, and Energize the East.,Japan
Wheelchair Rugby Federation
Chairman of the Board of Directors

Director
Yusuke Tsutsumi
Appointed 2000
Executive Officer of Oisix Inc.,
General Manager of Solution
Business Division,Radish Boya
Mail Order Division,Daichi wo
MamoruKai Home Delivery
Division,Director of Karabiner, Inc

Director
Hiroyuki Ozaki
Appointed 2010
Executive Officer of Oisix Inc.,
General Manager of Human
Resources Division

Director
Kouhei Matsumoto
Appointed 2018
Executive Officer of Oisix Inc.,
General Manager of Corporate
Planning Division
Representative Director of Future
Food Fund, Inc.

■Outside Directors

Director
Mitsuyo Hanada
Appointed 2008
Keio University Honorary
Professor, Chief Director of FC
Forum, Representative Directorof Corporate University Platform,
Inc.

Director
Hitoshi Tanaka
Appointed 2015
President and Representative
Director of JINS Inc., President
and Representative Director of
Brand New Day Co., Ltd.,
President and Representative
Director of JINS NORMA Co.

Director
Junko Watabe
Appointed 2019
General Manager of Quality
coordinate Office of Recruit
Holdings Co., Ltd.
Director of Loyalty Marketing, Inc.

Director
Wakako Sakurai
Appointed 2018
Department Manager of businessalliance Department of NTT docomo
Inc.
President and Representative Directorof Plus W, Inc.
Director of Toreta, Inc.
Director of AI CROSS Inc.

Director
Misato Kowaki
Appointed 2021
Sabae City Advisor, Female
Advancement Promotion.
AdvisorWeb media "MOTHERS
editorial department" established78

Main Business Risks
Effects of climate change
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
We operate our own logistics centers, where logistics functions such as
inspection, storage, sorting, and packing of our products areconcentrated. For the most part, products under the Oisix brand areshipped to customers through our logistics center located in the city of
Ebina, Kanagawa Prefecture. Those under the DWMK brand are shipped
through a center located in the city of Narashino, Chiba Prefecture. If anatural disaster, fire, or other cause were render either or both logistics
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.

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.

Governance throughout
the supply chain
The Group develops its business in collaboration with many business partners,
from procurement to logistics and the last mile. If any of these supply chains were
to experience an increase in occupational accidents caused by the working
environment, or governance violations such as human rights abuses orconcealment of wrongdoings, it could have an impact on our business andbusiness performance.
The Group will strive to avoid or mitigate risks
through close communication with business partners
that make up the supply chain, jointly recognizing thepossibility of incidents and security systems, andthrough collaborative work. We will also strive totransfer risks through the use of insurance andexemption and cancellation clauses in contracts.

79

KPI Data Sheets

DATA SHEET：Results
Results
2021.32022.32023.3mn yen

1Q

1-2Q

1-3Q

1-4Q

1Q

1-2Q

1-3Q

1-4Q

1Q

1-2Q

Sales

23,132

47,567

74,790100,061

27,911

56,16787,400113,476

27,90155,450Operating
Profit

2,076

3,976

6,131

7,465

1,950

3,347

4,979

4,171

962

1,672

EBITDA

2,419

4,679

7,198

8,902

2,316

4,188

6,385

6,216

1,498

2,771

Net income
Attributable toowners of theparent

1,184

2,452

3,900

5,031

1,293

2,156

3,294

2,727

587

892

81

DATA SHEET：Business Segment Result
Business Segment Result
2021.3（mn yen）

Oisix

Daichi

Radish Boya

Purple Carrot

Other
Business*2022.32023.3

1Q

1-2Q

1-3Q

1-4Q

1Q

1-2Q

1-3Q

1-4Q

1Q

1-2Q

Sales

11,26523,04737,03649,86314,14528,58045,19058,546

14,39328,458Segment
profits

2,367

4,335

7,012

8,984

2,057

4,045

6,525

7,036

1,953

3,821

Sales

3,636

7,094

10,761

13,978

3,314

6,628

10,154

13,240

3,070

6,141

Segment
profits

724

1,368

2,160

2,751

663

1,319

2,010

2,619

624

1,188

Sales

4,721

9,083

13,653

17,704

4,331

8,732

13,336

17,432

4,190

8,370

Segment
profits

899

1,626

2,449

3,023

584

1,143

1,883

2,429

591

1,126

Sales

-

-

-

-

2,842

5,536

7,893

10,208

2,586

5,171

Segment
profits

-

-

-

-

549

811

985

959

△78

△49

Sales

3,601

8,522

13,60018,922

3,373

6,911

11,194

14,578

3,969

7,958

Segment
profits

391

1,038

1,599

2,320

427

869

1,295

1,423

435

758

2,305

4,391

7,089

9,655

2,329

4,842

7,720

10,296

2,564

5,174

Companywide fixed costs,
Goodwill etc*From 2022/3, Purple Carrot has been separated from other businesses and disclosed.

82

Data Sheet：Main KPIKPI trend
2021.3Oisix

Daichi

RadishBoya2022.32023.3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

Subscribers(number)

252,303

274,929

285,168

308,899

333,850

347,772

345,409

346,083

350,650

355,962

ARPU
（yen）

13,822

12,986

13,106

13,042

12,891

12,564

12,88012,166

12,302

11,892

6,748

6,201

6,315

6,215

6,098

6,057

6,220

6,096

5,970

5,934

2.05

2.09

2.08

2.10

2.11

2.07

2.07

2.00

2.06

2.00

Subscribers(number)

43,94144,87844,99845,30745,19645,39445,73045,534

43,95544,092

ARPU（yen）

27,117

24,12824,35623,52023,02523,251

24,07921,72821,98622,192

9,234

8,610

9,000

8,729

8,425

8,557

9,002

8,218

8,344

8,521

2.94

2.80

2.71

2.69

2.73

2.72

2.67

2.64

2.64

2.60

Subscribers(number)

62,51561,822

61,51862,751

65,32066,464

66,20665,09365,297

66,230

ARPU（yen）

23,18920,88421,00020,25920,18819,74820,137

18,79018,947

18,461

7,028

6,373

6,696

6,441

6,402

6,407

6,589

6,247

6,451

6,442

3.30

3.28

3.14

3.15

3.15

3.08

3.06

3.01

2.94

2.87

Price/
purchase（yen）
Purchase
Frequency(number)

Price/
purchase（yen）
Purchase
Frequency(number)

Price/
purchase（yen）
Purchase
Frequency(number)83Effect of accounting change
on depreciation and operating expenses
Rents for New Ebina distribution center was accounted for as finance leases in accordance with accounting standards.
Due to the change in recorded items compared to the previous location Differences in EBITDA and ordinary income comparedto the same period of the previous year. The accounting items have been changed from SG&A expenses to depreciation andinterest expense before and after the accounting standard change.

-after（New Ebina Ebina distribution center）-before（Applicable to centers used from 2021.3 and before）

CoGs and SG&A expenses(excluding 約5
goodwilland depreciation)

１・Due to a change in accounting standards,
from New Ebina distribution center ,Rent is excluded from SG&A expenses

CoGs and SG&A expenses
約5(excluding goodwill
and depreciation)

２

recorded as
SG&A expenses

depreciated as a finance lease,
Recording of interest expense(non-operating expenses)

Amortizationof goodwill
and depreciation expense

Sales

EBITDAOP

・Rent divided by ① isAmortizationof goodwill
and depreciation expense

Ordinary
incomeSales

EBITDAOP

Ordinary
income84

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 be accurate.
◆ Actual operating results may differ from the future outlooks contained in this material.

85