Results
Briefing Material
決算説明資料Q2 FY3/2017
2017年3月期2Q
オイシックス株式会社
Oisix Inc.

Our Corporate Philosophy
Fabulous food. To as many people as possible.
At Oisix (pronounced oishix) we strive to provide
services that allow more ordinary families to easily andreadily enjoy greater and healthier variety in what theyeat.
We think not as a producer, but as a customer to whom
we aim to deliver delicious ingredients wherever andwhenever they are desired.

1

Contents

1 2 3

FY3/2017 Q2Results Overview

FY3/2017 Q2
Activities Overview

FY3/2017 Q2Tokushimaru Inc.
Activities Overview

This material is intended to provide an understanding of Oisix activities, not to solicit investment. Forecasts of Oisix’s operating
results and future performance are based on information available to Oisix at the time this material was drafted and are notguaranteed to be accurate. Actual operating results may differ from the future outlooks contained in this material.

1

FY3/2017 Q2Results Overview

FY3/2017 Q2 Cumulative Results■SalesEC sales trended well (112.4% YoY) thanks to an increase in subscribers. Adding EC
Consultancy growth, overall performance was 114.3% YoY (100.2% Q2 achievement rate).
■Operating Profits
Profits from increased sales were used for such items as upfront investments needed for new
subscriber acquisitions. As a result, OP was 103.6% YoY（100.3% Q2 achievement rate).
FY3/2016
Q2 Actual

FY3/2017
Q2 Actual

FY3/2017
Target9,375

10,71823,0001,343

114.3%

46.6%

Operating Profit

261

270

820

9103.6%

33.0%

Recurring Profit

279

2858306102.3%

34.4%

Net Profit

177187580

9105.4%

32.3%

Unit：Million yenSales(attributable to Oisix)(Parent) (Consolidated) (Consolidated)

Increase(YoY)

Rate ofAchievement
increaserate(YoY)4

Q2 Cumulative Sales Trends
Strong acquisition of new subscribers translated into sales of 114.3% YoY andthe posting of the company’s sixteenth consecutive year of record highs.
114.3% YoY(¥mn)

10,71810,000

9,375
8,366

8,000

2Q

7,376
6,864

6,000

5,272

3,722

4,000

3,246
2,745
1Q

2,0000FY3/2009

FY3/2010

FY3/2011

FY3/2012

FY3/2013

FY3/2014

FY3/2015

FY3/2016

FY3/2017

5

Subscriber Trends
Our most important KPI, the number of subscribers, grew from 111K in 4Q FY3/16 to124K on the back of strengthened promotions.
（No. Subscribers）

124,283111.9%

125,000

Since end FY3/16

125,000

118,124
115,000

111,035
107,539

105,000

101,079

102,780

96,71895,00091,54093,47087,01885,00082,081
76,93775,816Q1

Q277,47575,00065,000Q3

FY3/2014

Q4

Q1

Q2

Q3

FY3/2015

Q4

Q1

Q2

Q3

FY3/2016

Q4

Q1

Q2

Q4 Target

FY3/2017

6

Frequency of Purchase Trends
Experimental increases to sales promotions were optimized and reduced inQ2. While this saw a slight decline in frequency of purchases, earnings perorder increased. Frequency of purchases was 2.00 (96.6% YoY).
(FoP)

2.40
2.20

2.08

2.12

2.15

2.11

2.01

2.07

2.09

2.16

2.15

2.07

2.11

2.07

2.06

2.00

2.00

96.6%
YoY

1.80
1.60
1.40
1.20
1.00
Q1

Q2

Q3

FY3/2014

Q4

Q1

Q2

Q3

FY3/2015

Q4

Q1

Q2

Q3

Q4

FY3/2016

Q1

Q2
FY3/2017※From this ﬁscal year, ﬁgures have changed from end-of-quarter monthly to quarterly average.

7Customer Spending Trends
Average customer spend was ¥5,799 (101.7% YoY). Contributing to the rise were
improvements in smartphone usability and higher unit prices for fruits &vegetables on the back of an improved shopping sites.
(¥)

8,000

7,000

6,000

5,757

5,757

6,049

5,932

5,806

5,841

6,081

5,800

5,756

5,701

5,988

5,878

5,874

5,000

5,799

101.7%YoY

4,000

3,000

2,000
Q1

Q2

Q3

FY3/2014

Q4

Q1

Q2

Q3

FY3/2015

Q4

Q1

Q2

Q3

Q4

FY3/2016

Q1

Q2

FY3/2017※From this ﬁscal year, ﬁgures have changed from end-of-quarter monthly to quarterly average.

8ARPU Trends
ARPU was ¥11,586 (97.9% YoY) with average frequency of purchase of 2.00
(96.6% YoY) and average customer spend of ¥5,799 (101.7% YoY).
(¥)

14,50014,00013,50012,84313,00012,50012,75012,227

11,98412,00012,682

12,514

12,644
12,402

12,13912,072

12,087

11,593

11,586

11,827

11,50097.9%

11,000

YoY

10,50010,000Q1

Q2

Q3

FY3/2014

Q4

Q1

Q2

Q3

FY3/2015

Q4

Q1

Q2

Q3

Q4

FY3/2016

Q1Q2

FY3/2017※ARPU：Average Revenue Per User (Monthly sales attributable to each subscriber)※Purchase frequency of regular customers x amount spent/no. purchases※From this ﬁscal year, ﬁgures have changed from end-of-quarter monthly to quarterly average.

9Medium Term Growth Strategy- Pursuit of the Outright No. 1 Player in Food x Subscription Commerce -Answer to the needs of all age-groups via Subscription Commerce andaccelerate growth to become the outright No. 1 Player in the industry
PremiumOisix
3rd PartyOverseas

・Tasty select courses・Pre-Mama & Mama Courses
・Farm-fresh, Oitoku
・Gochimaru Courses
Hong Kong

Oisix
Oisix
Kit Courses

TamahiyoCourses

20代
代

30代
代

40代
代

50代
代

60代
代
Tokushimaru

70代
代~
新Convenience

10Medium Term Growth Strategy- Target Total Transaction Value -Through initiatives to expand each business, aim for Total Transaction Value(TTV) in FY3/19 of ¥40.0bn(¥bn)

Tokushimaru

Sales from
Tokushimaru =Commission

TTV
流通総額

500
50

40.0bn40040
3rd Party
Platforms

Overseas

Oisix sales =Fulfillment andConsultancy Fees

Oisix sales same asTransaction Value

30300

20200250
174

195

10010Oisix

Oisix sales same asTransaction Value0※Does not include ﬁgures from
Shop & corporate-related business

FY3/2015
FY3/2016
FY3/2017
FY3/2018
FY3/2019
2015年3月期
2016年3月期
2017年3月期
2018年3月期
2019年3月期(Actual)(Actual)(Target)(Target)(Target)
（実績）
（実績）
（計画）
（計画）

11

Medium-Term Growth Strategy- Total Transaction Trends -Total Transaction Value ¥5.97bn, 130.7％ YoY
130.7% YoY(¥bn)

7Tokushimaru

3rd Party Platforms

Overseas

5.75

5.59

65.08
54

5.97

Oisix

3.94.30

4.12

4.58

4.57

1Q

2Q

4.81

3
210
1Q

2Q

3Q

FY3/2015

4Q

3Q

FY3/2016

4Q

1Q

2Q

3Q

4Q

FY3/2017

11

2

FY3/2017 Q2Activities Overview

FY3/2017 Strategy & Action① Evolution of Oisix.com② Evolution of Subscription Platforms③ Strengthening of the Brand④ Food x Healthcare

FY3/2017 Strategy & Action① Evolution of Oisix.com② Evolution of Subscription Platforms③ Strengthening of the Brand④ Food x Healthcare

Strengthening of Premium Jitan Speedy ServiceLaunched our “Quick 10” Series featuring a main and a side dish that can becooked in just 10 minutes. To fit in with busy women’s lifestyle.
■Crunchy! Shredded spring onion atop mizoreni
poached mackerel dressed with cucumber, seaweed
and nametake mushrooms.

■Colorful vegetables and meatballs fried in sweet
vinegar, with melt-in-the-mouth corn and soy milk
curd soup.

・”Quick 10” is a series of recipes that can be completed in half the cooking time of our 20-minute “Kit Oisix”
・Using Oisix-standard ingredients, more than five types of vegetable can be combined.
・Enabling even the busiest of households to enjoy proper meals.

14Evolution of Kit Oisix : Subscriber Trends
Net subscriber growth continued with introduction of Quick 10 and Free Research
Kits. Subscribers has grown to 44K (136.7% vs 4Q FY3/16).
■What is Kit Oisix?

(No. Subscribers)

44,00045,000136.7%

Since end FY3/16

40,00037,82735,00032,381

30,00027,48825,00022,48019,97820,000・Only ingredients that meet Oisix standards used・Main & side dish cooking time limited to 20 min.
・Makes plentiful use of seasonal vegetables

15,00010,000
1Q

2Q

3Q

FY3/2016

4Q

1Q

2Q

FY3/201715

Evolution of Kit Oisix : Launch of kits thatenable free research
Launch of summer-only “Free Research Kits” that enable parents/children toenjoy cooking together whilst also helping children with homework.
■From handmade mayo! Cooked salmon and tartar sauce ■3-types of aubergine curry gratin・Parents and their children are together able to enjoy themselves and create fond memories.
・By answering research sheet quizzes, participants are easily able to grasp key points.
・Worksheets filled with advice from Tokyo University students support summarization skills.

16Evolution of Kit Oisix : Launch of Gudetama
Collaboration Kits
Introduction of “GudetamaDeko Meals” which require no heating using ourGudetama Collaboration Kit. Making life easier for mothers cooking during hotJapanese summers.

・Kit to create meals on hot summer days when another heat source from cooking is undesirable.
・Gudetama offers “100 recipes to help mothers cope with the summer holidays”

17Start of Jitan Speedy Fruit/Vegetable Service
With Jitan Fruit/Vegetable Products and Kits, we broaden our offerings tomake it easy for very busy mothers to put veggies on the table■Offering vegetable products that make it easy
to cook veggie side dishes■Recipes for our products are also provided

18

Strengthening Alliances : Benesse HD
Membership of our Oisix Club with Tamahiyo, a service launched in February
2016 for mothers-to-be and new mothers, has already exceeded the 1,400 mark!

1,478(No. Subscribers)
1,600
1,400
1,200
1,000
800
600
400
2000
Q4
FY3/2016

Q1

Q2
FY3/2017

22

FY3/2017 Strategy & Action① Evolution of Oisix.com② Evolution of Subscription Platforms③ Strengthening of the Brand④ Food x HealthcareStrengthening Alliances : Isetan Mitsukoshi HD
Reached basic agreement for Food Delivery Business JV with Isetan Mitsukoshi Holdings Ltd.
Contractor business centered around fulfillment, but also committed to sales as a JV owner.
<Illustration of Collaborative Business>■Robust product line-up■Product Planning Power■Oisix Web Marketing■Approx. 5mn Isetan Mitsukoshi
Group Card/Online Subscribers

Isetan Mitsukoshi Products■Isetan Mitsukoshi Brand Power

Oisix Products■Oisix Fulfillment

23

EC Consultation
Providing EC Site Consultation to time-honored soup-stock company NinbenCo., Ltd. Applying our expertise to increase traffic and raise conversion rates.

23

FY3/2017 Strategy & Action① Evolution of Oisix.com② Evolution of Subscription Platforms③ Strengthening of the Brand④ Food x Healthcare

“Shop in Shop” renewal
New Creative Director Manabu Mizuno has started refurbishment of ourexisting “Shop in Shop” spaces delivering average sales boost of 27% YoY.
■Shop in Shop Store Numbers

2730+10 YoY

252017■Manabu Mizuno

15

Profile in brief...

・good design company CEO・Keio University SFC Guest AssociateProfessor・Wide-ranging set of skills from thefundamentals of brand creation tologos, packaging, shop design andconsultancy.

1050
FY3/2016 Q2

FY3/2017 Q219Collaboration with DEAN & DELUCA■Oisix Seasonal Vegetable corner opened within DEAN & DELUCA’s Atre Shinagawa
Store on a special limited time basis.
■Project to open Oisix physical stores in collaboration with DEAN & DELUCA isfully underway. Aiming to open first shop in the first half of FY17.

20

Celebrity Ambassador Selected■Our first celebrity ambassador has been selected. Throughout the year, theambassador will market the allure and attractiveness of vegetable rich dishes.
<Date of Press Conference>
12 th November (Sat) 11:00am ＠Roppongi Hills Arena
On stage on the first day of Tokyo Harvest, we will hold an
unveiling ceremony and reveal our Collaboration Salad.
Put it in your calendar!

<Planned Activities Going Forward>
From 12 th November (Saturday) for a limited period, a codeveloped Collaboration Salad Kit will be available for sale.

28

FY3/2017 Strategy & Action① Evolution of Oisix.com② Evolution of Subscription Platforms③ Strengthening of the Brand④ Food x Healthcare

Establishment of the Food Tech Fund (FTF)
We have created Japan’s first strategic investment fund specializing in food. Investing
will involve actively providing ground support and aim to facilitate the speedierdelivery/commercialization of new technologies leveraging Oisix’s own expertise.
Oisix
Subscription based
Food E-Commerce
・120,000 customer database
・Page creation
・Data analysis
・Product development
・Logistics

×Domestic and Overseas
Food Tech Healthcare・Big data
・Internet Of Things
・Medical advances

24Bussinness and Capital Alliance withRoutrek Networks Inc.
A bussiness and capital alliance was agreed to with Routrek Networks, developer ofZeRo.agri, a next generation liquid nutrient system that quantifies the state of soil
and automatically supplies appropriate amounts of liquid feed. Through thisalliance, we are looking to both curb supply costs and expand supply capacity.
■What is ZeRo.agri
・Quantifies water content, EC values, sunlightlevels, moisture, and temperature to automaticallydetermine the level of liquid feed required in thesoil in greenhouses.
・Drastically cuts time required for watering andadditional feeding, while the data-based deliveryof liquid feed results in stable crops.

■Overview of Business Alliance・Introduce ZeRo.agri to Oisix producers
・Provide some process analysis data relating tocultivation management
・Use of Beta versions of new services/functions■Scope of Capital Alliance・¥30mn ordinary shares

31

Capital Alliance with Taiwanese Organic Food
Delivery Company
Following Hong Kong, Taiwanese alliance represents Oisix’s 2nd foothold in East
Asia. Research on the subscription model in Taiwan and test marketing will beconducted. Meanwhile, investment in other Asian companies and entry into otheroversea markets will continue to be actively contemplated.
■Wonderfulfood.com screenshots■Company Overview
Name: The Wonderful Food Co., Ltd.
Established : October 2011
Business: Organic Food Delivery
Service name: The Wonderful Food
CEO：Bell Chiang(Former Finance Director of IBM Group Taiwan)
Director：Maggie Chen
（Member, Taiwan Council of Agriculture）■Scope of Capital Alliance・Ordinary shares worth approx. ¥64mn(= several % voting rights)

32

Opening of Umami Diet Research Laboratory
Program to develop the palate so one can taste umami is underway. Tests will
begin in December and results are expected to be announced at America’s largest
business event, South by South West (SXSW) in early March 2017.
■Co-Development Team
Following graduation from
Tokyo University Faculty ofMedicine, studied at theHarvard School of Public
Health in USA. Completed
masters in Public Health.
Co-founder of Cancerscan
Inc. and Campus for H Inc

Professor Yoshiki Ishikawa

Dr. of Medecine, Preventive Medicine Researcher

At 25 opened his own
restaurant in Nice. In July2010 he was not only thefirst Japanese chef to beawarded The Order of Artsand Letters by the French
Government, but theyoungest chef to have everreceived this honour.

■Service Illustration①Taste test to see if a fixed concentration brothtastes weak or strong②Undergo 2 week Palate
Development Program(Breakfast and Supper)④Afterwards, continue with diet fora specified period by ordering
Healthy Kits

③Re-measure palate, check for change insense of taste and body weight

Keisuke Matsushima, Chef

Chef and owner of Michelin Star Restaurant..

33

Others- Official Supplier to Japanese Wheelchair Rugby -In the run-up to the 2020 Tokyo Olympics, Oisix has been providing backend support to the activities of para-athletes. Oisix was also chosen as an
official supplier to support the spread and development of their discipline.

■Providing nutritionally balanced ingredients andKit Oisix■Helping attract new fans, e.g. by renewing
Wheelchair Rugby’s website

25

Other - TABLE FOR TWO Oisix donates 3% of revenue from sale of TFT-accredited products to TFT.
Donations contribute to school meals and the construction of cafeterias forchildren in developing countries
Customers

Oisix

Donates

3％of revenue

Purchase TFT accredited products

Sells TFT-accredited products

Deliverslunches tochildren indevelopingcountries* Total as of Sep.2016 on the basis of 20 yen per meal

26

Other- Staging another TOKYO HARVEST on Nov 12 & 13 -We are hosting Tokyo Harvest again this year, under the concept “LoveLetters from Tokyo.” Various professional artists and chefs are cooperating to
make the event a success.

Hima Furuta■Roppongi FarmSHIORI

Fumio Yonezawa

Mifuyu Ando

■Roppongi Harvest Car Fruit and Veg Relay
・Harvest Car visits
producers
・LIVE video from thecountryside is streamedon SNS27

3

FY3/2017 Q2Tokushimaru Inc.
Activities Overview

Number of Vehicles in Operation
Service Launch in new and existing partner supermarkets has been trending
well resulting in an increase of 60 vehicles since Q4 FY3/16. Company hasbegun new services such as sampling of products for the elderly.

168(No. vehicles)
180

160

145

140

108

12092

100

72

80

5060

40

20045667Q2Q3

Q4Q1

Q299Q3

Q4121827340Q1

FY3/2013

FY3/2014

Q1

Q2

Q3

FY3/2015

Q4

Q1

Q2

Q3

FY3/2016

Q4

Q1

Q2

FY3/2017

29

Operating Regions & Partner Supermarkets- As of Sept-end 2016 -■ Operation Regions

35Prefectures（27 as at end FY3/2016）※Yellow areas indicate prefectures added since
end of FY3/2016.

■Top-ranking prefectures- Tokushima 24 vehicles- Okayama 16 vehicles- Kochi 14 vehicles■ Partner Supermarkets

64（53 as at end FY3/2016)
A-COPE WEST, FS-SATO, JA-Aichi Toyota, JA-Kishu
JA-North northeast, T-MART, Hasta la vista, Amano, Ichii,
Ichiyama mart, Valore, Uokatsu, Ushio, Ookita,
Okaya Fresh market, Ox, Kakemo, Kanehachi,
Kansai Supermarket, Gyu-tora, Kyorindo Pharmacy, Kyoei,Kyoei（Kagawa）, Komeya store, Sunny Mart,Sankyo, Sanzen, Sunrise, JOINT(Kobayashi food market),Maruaji super market（Sunny）, Super Luck, Suehiro, Seven star,Zennichishoku, Takasu(Sankyo）, Tenmaya, Tobi,Top world, Domannakatanuma, Dontaku, Nagaya,Narizawa, Niko, Nisizawa, Nichie, Hashihama, Pariya,Haruta, Hibariya, Fukuya, Bunkado, Bunkado（Kanagawa）,Benny, Belc, Marusho, Mitsumaru store, Yao department store,
Yamato, Yamanobu, Yours value, U-mart,
Yokomachi, Yoshiya, Yoneya

30

Total Transaction Value
Q2 (FY3/17) Total Transaction Value was ¥852mn (166.4% vs. Q4 FY3/16)

852（¥mn）
900

800

698700512600438

500

400300314232200

100

0Q1Q2Q3
FY3/2016

Q4Q1Q2
FY3/2017

31