FY2020/3 Results
Explanatory Materials

Oisix ra daichi
2020.5.28

Update Infomation

The following pages have been updated
since the previous version
Update Pages：P3・P19・P55・56・P64～P80

1

Table of Contents

1. FY2020/3 Achievements
2. Our Current Situation and Response to COVID-19
3. Results on Business segment
4. FY2021/3 Strategy
5. FY2021/3 Outlook
APPENDIX・DATA SHEET

2

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.
3

1. FY2020/3 Achievements

4

Executive summary
ーFY2020/3 Results✔ Achieved sales, EBITDA, and operating income against vsTarget✔ In the outlook before COVID-19,

Sales: Steady growth mainly on Oisix business – expect to achieve
initial forecast
Profit: Reflecting the impact of typhoons, one-off expansion of Kit
Oisix related costs, and operating losses at Purple Carrot(consolidated in 3Q), there remained the possibility of a slightshortfall relative to forecast.

✔ Homehome delivery demand increased from March onward
by COVID-19, Sales and profits increased by ¥900mn and¥250mn, respectively, mainly on the domestic business.

✔ Net income has not reached outlook.

We recorded approximately 300 million goodwill impairment loss,
Because sales of affiliated company Welcome (DEAN & DELUCA)
decline caused by the impact due to COVID-19(Non-operating expenses: Recorded as equity method loss)
5

Special factor in comparison withthe same period of the previous year

【FY2019/3】① Radish Boya irregular fiscal year-end
associated with the business merger
・・Due to a change in the consolidated fiscal year of Radish Boya, FY2020/3/3
includes one extra month (4-months in 1Q resulting in 13-months total)・・The section marked “Exclude special factors” excludes the March 2018
performance of the Radish boya business.
(sales: approx. 1.600 billion, operating income: approx. 0.07 billion).

② Tax effects from merger of Radish Boya・・Tax effects of operating loss carryforwards and deferred tax assets
resulting from the merger of Radish Boya (About 1.2bn yen)

【FY2020/3】③ New consolidation through M&A・・Welcome (Dean & Deluca) is accounted for by the equity method from 1Q
resulting in recognition of consolidated income and goodwill.
・・Purple Carrot will recognize consolidated sales and profits(losses) and goodwill from 3Q*Due to the difference in fiscal year-ends, consolidated results are delayed by 3 months(4Q is consolidated from Oct to Dec).

6

FY2020/3 Highlights※For the purposes of like-for-like YoY comparisons,
one extra month of Radish Boya data (March 2018)
was deducted from FY 3/2019 data.

Achieved sales, EBITDA, and operating income against vsTarget
Net income was not reached due to the impact of impairment loss of DEAN &DELUCA (details will be described later)

Sales

Operating
Income71.04bn yen
vsTarget

+2％

YoY

+14％※

2.46bn yen
vsTarget

+12％

YoY

+10％※

EBITDA

Net
incomeAttributable toowners of theparent3.59bn yen
vsTarget

+12％

YoY

+17％※

0.79bn yen
vsTarget

-21％
-30％※

YoY about

7

※For the purposes of like-for-like YoY comparisons,
one extra month of Radish Boya data (March 2018)
was deducted from FY 3/2019 data.

Consolidated Results Overview

Both sales and profit have increased YoY.

Demand for home delivery has increased since Mar. in 4Q
Sales

EBITDA

71.04

bn yen(YoY +14%)

Operating Income

3.59

bn yen3.59

0.99

FY2020/3

FY2017/3

FY2018/3

FY2019/3

0.75

FY2020/3

FY2017/3

0.89

FY2018/3*Exclude special factors

FY2019/3

1.67

2.24

*Exclude special factors

FY2018/3*Exclude special factors

FY2017/3

2.46

3.08

62.42

23.01

bn yen(YoY +10%)(YoY +17%)

71.04

39.98

2.46

FY2019/3

FY2020/3

8Comparison with the outlook
before COVID-19
In FY2020/3, in the forecast before COVID-19, sales are expected to be achieved
against Outlook, but profit may be slightly underachieved. Achieved withincreased sales and profits due to the impact of COVID-19 after MarchSales

EBITDA
Sales

71.04

About

3.59

+0.9bn yen
Domestic
Delivery

：+0.6

Daich

：0.1

Radish Boya 0.1：0.1+0.25bn yen-0.2bn yen

・Profit increase
due to sales increase

・Profit increase
due to EBTDA increase

19

・Cost control
due to suspensionof new acquisition：+0.10+0.10
・goodwill
impairment loss
About
0.1

19

：-0.30
about
-0.3

0.79
After
COVID-

EC support/Hong kongAboutbefore COVID-

OtherNet Income

EBITDA
About：+0.15
before COVID-

before COVID19

Oisix

Net Income

199※For the purposes of like-for-like YoY comparisons,
one extra month of Radish Boya data (March 2018)
was deducted from FY 3/2019 data.

YoY：EBITDA

EBITDA increase in profit at YoY due to an increase in segment profit
due to an increase in entire business sales
EBITDA（bn yen）
1

3

Decrease innewpromotionalin Oisix

1.59
3.08

1 Promotional in Oisix：-0.21
５

0.21

2

Major increase in costs

Increase costs
due to Oisix
prime pass

0.23

Temporary
expenses for
Oisix
expansion

Other

0.36

0.16
0.34

4

3.59

・Given large expenditures on TV commercials andother PR activities last year, current year 4Q
expenses saw an YoY decline.

2 Temporary expenses for Oisix
expansion ：0.23
・Additional warehouse leasing expenses,
transport expenses, etc.
due to the rapid growth

Increase costsin Daichi andRadish Boya

*Exclude special factors

3 Oisix prime pass：0.36

・Discounts cost：Upfront investment
to improve LTV

Increase in
Marginal
profit due
to increase
In entirebusiness

4 Daichi and RadishBoya：0.16
・Increase in fixed cost ratio
due to decrease in sales

5 Other：0.34
・・Purple Carrot loss 0.25

FY
2019/3FY
2030/3・・Typhoon 0.05 etc,

10

＊For the purposes of like-for-like YoY comparisons,
one extra month of Radish Boya data (March 2018)
was deducted from FY 2019/03 data.

YoY：Net Income

Net income decreased by YoY. Impact of goodwill impairment loss on DEAN &DELUCA and loss of corporate tax reduction due to Radish Boya business integration
FY2019/3

FY2020/3（bn yen）

Tax effects of operating
loss carryforwards anddeferred tax assets
resulting from themerger of Radish Boya
(About 1.2bn yen)）

3.08
0.84
*Exclude special factors

goodwill/
depreciationamortisation

EBITDA

non-operating/
Extraordinaryabout
profit and loss 1.0

3.59
1.13

about
1.2

goodwill/
depreciationamortisation

0.30

Typhoon
Impact etc,

0.33

Welcomeequity-method
Goodwill
amortization

Incometaxes-current/
Incometaxes-deferred

Net Income

goodwill
impairment
loss

2.46

Ordinary
incomecorporate tax taxes effects

Operating Income

Purple Carrot
Goodwill amortization

2.38

2.24 0.15（bn yen）

non-operating
loss

EBITDA

Operating Income

0.08
Extraordinary
loss

the absenceof the income
taxes effects

0.96

0.79
Incometaxes-current/
Incometaxes-deferred

Net Income

11Business segment Results
Sales＊For the purposes of like-for-like YoY comparisons,
one extra month of Radish Boya data (March 2018)
was deducted from FY 2019/03 data.

Marginal profit

Oisix

35.82bn yen 4.80bn yen

Daichi10.54bn yen 1.88bn yen

RadishBoya*

Otherbusiness(YoY +21％)(YoY -3％)(YoY +19％)(YoY -5％)

14.98bn yen 2.66bn yen(YoY -9％)(YoY -14%)

9.49bn yen 0.84bn yen(YoY +66％)(YoY +16％)

Overview
The number of subscribers has increased byabout 40,000 since the end of the previous
term.
Expenses associated with Kit Oisix expansion
expected to be reduced in stages. From Mar
onward, sales and income increased owing tohigher existing subscriber ARPU in the face of
COVID-19
We are focused on developing products andservices for the target senior market.
Number of subscribers expected to haveeffectively bottomed out in the current
fiscal year. From Mar onward, sales andincome increased owing to higher existing
subscriber ARPU in the face of COVID-19
In the 1H, we completed measures to reduce
unprofitable orders thereby establishing abase for stable revenue generationIn the 2H,
we implemented measures to improve
subscription service operations that have led
to a decline in the cancellation rate. From Mar
onward, sales and income increased owing tohigher existing subscriber ARPU in the face of
COVID-19
Sales increased significantly due to growth in
the e-commerce support business of othercompanies and the consolidation of Purple
Carrot. Despite losses at Purple Heart, profit
increased thanks to the significant return toprofitability of Kindergarten Wholesale.

12Business segment Results Overview
Sales

71.04
Other

bn yenMarginal profit

8.9％

Segment costs

Total segment costs

RadishBoya

Daichi

Marginal profit Segment costs

17.8％

60.85bn yen

Marginal profit Segment costs

17.9％

Total
Marginal profit

10.19
Marginal profit Segment costs

Oisix

13.4％

bn yenCompanywide fixed costs,
Goodwill etc

77.3bn yen
Operating Income

2.46

bn yen13

2. Our Current Situation and Response to COVID-19

14

Executive summaryーResponse to COVID-19✔

In order to play a role as a food lifeline, we have given top priority
to responding to changes in logistics and the way employees work.
As a result we achieve stable business continuity✔ The effect has been one of stronger home delivery demandthat has boosted sales/profits for the three domestic delivery brands,
the EC support business, and the overseas delivery business.
Providing services that capture changes in customer needs with COVID-19
In the Kindergarten Wholesale and Advertising segments,
sales fell owing to the impact of school closingsand restrained ad spending by partner companies.

✔

On the other hand, new customer acquisitions have been stopped as
shipments at Oisix are nearing capacity,
In the short-term, profits have benefited from lower implementation of
PR expenses.
But this suggests lost sales in the future.

✔ We have rapidly implemented several support measures in responseto newly emerging social issues related to food.

15

Response to COVID-19① Business continuity system② Business impact and support activities
through business③ Other support activities

16

Business continuity system
Established a distribution and delivery network that ensures hygiene management.
On the other hand, more than 80% of head office staff perform normal operations
while working at remote work

Way of working

Strengthening of logistics / delivery system✔ Strengthening hygiene

and safety management system
Raise the level of hygiene
control at distribution
centers across Japan
Make all-out efforts toprevent coronavirus
infection✔ From February 26th, COVID-19 meetings
are held every day for quick decision
In addition, we send a video message to
our employees at least once a week frommanagement to communicate ourmanagement policy closely.

✔ We implement immediate infrastructure
measures. As a result, more than 80% of✔ Order / delivery system

to prevent the spread of infection

head office staff perform normal

・・Strengthening the telephone orders forsenior customers

operations while working at remote work

・・Reduce physicalcontact opportunities
during shipping✔

Special rewards will be provided tostaff and delivery crews at distribution
centers17

Response to COVID-19① Business continuity system② Business impact and support activities
through business③ Other support activities

18

Main support summary
Supportsales ofmilk

SupportHokkaido

About120,000ℓ 0.15bn yen
・・Supporting sales of milk for about
17 days provided by affiliated dairy
farmers for school lunch
Home
Economics
at Home"Home
Restaurant

8 10
shops

items

・・We have grasped the needs ofcustomers who want to easily enjoy
the taste of restaurants at home.

・・About 50,000 people support Hokkaido
ingredientsWe
Support

About

1,700
・・Many posts centeredon Twitter and Instagram

About

0.2bn yen・・Deliver foods from 73 support companies
to 32 medical institutions throughthe We Support

19

19

Business impact summaryーOisixDomestic Delivery business（Three major brands）
Domestic Delivery business（Other）

Other Business

Oisix
Owing to stronger home delivery demand vis-à-vis stay home
initiatives, existing subscriber ARPU increased by some 20%.
(Boost to sales of roughly ¥600mn/month)

We have been implementing various support initiatives related to COVID19. Examples are the "Sale of School Lunch Milk" and the "Hokkaido
Product Exhibition."
to shipments exceeding capacity, we stopped new customer× Due
acquisitions for a period of 1 month from Mar 26th to Apr 29th.
We are now guiding new Oisix inquiries to Daichi and Radish Boya.
the short-term, profits have benefited from lower implementation
× In
of PR expenses.
But this suggests lost sales in the future.

20

Domestic Delivery business（Three major brands）

Business impact summary

Domestic Delivery business（Other）

ーResponding to the needs by COVID-19

Other BusinessSupport sales of surplus milk due to suspension of school lunch.
And we have opened a dedicated site for children to work on cooking at home.
Provide Support for Dairy Farmers Affectedby the Suspension of School Lunch✔ Provided support for dairy farmers to sell excess milk

due to an across-the-board school closure and sold all
the volume initially planned in two hours of time.
A recipe using milk is also introduced.

Establishment of the “Home
Economics at Home" Sitea website where students at home for a✔ Launchedschool closure can engage in active learning at homethrough cooking practice.
Expanded exposure on SNS

21

Domestic Delivery business（Three major brands）

Business impact summary

Domestic Delivery business（Other）

ーResponding to the needs by COVID-19

Other Business

The frequency of eating at home increased by COVID-19.
We implement plans to meet new customer needs, such as “Eating at home"■ Expanding demand for "Eating at home"✔ "Miso-making Kit Oisix"

increased YoY +20%
Sales of canned goods andother stock products
exceeded YoY+30%✔ As family meals increase,
Kit Oisix's sales of products
for 3 people grow・Increase in media exposure✔

The demand of customers cooped up in their homes wasfeatured mainly on TV programs of 23medias, including “Saturday
Plus” by Mainichi Broadcasting System and “news every” by Nippon
Television Network Corporation.
Our products caught people’s eye as their concept meets themarket needs

22

Business impact summaryーResponding to the needs by COVID-19

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

Other BusinessWe sell a restaurant product whose sales have dropped significantly
by COVID-19 as a "home restaurant" on the Oisix special site
■Home restaurant✔ We sell products of restaurants whose sales have decreased by COVID-19 on a special site.
There were 124 reports mainly on TV and WEB media.

23

Domestic Delivery business（Three major brands）

Business impact summary

Domestic Delivery business（Other）

ーShipping capacity of Oisix

Other BusinessAccording to the initial assumption, the shipment capacity will be exceeded
due to a sudden increase in demand, even though we plan to do things at theexisting distribution center until the completion of the new Ebina station in
September 2021.

■Shipping capacity status✓ the Initial assumption
・・Until the start of operation of the new Ebina
Station, which plans to invest about 3.7 billion,
we will be to gradually expand capacity between thecurrent Ebina Station and the satellite center.

～Maximum shipping capacity ～DemandIn order to cope with the rapid expansion of capacity, we have set up
a logistics center operation system.
But we couldn't cover it though I increased it and raised the upper
limit of shipping capacity.
We prioritize delivery to existing customers and stop new acquisitions
from the end of March

Shipment quantity

Shipment quantity

September 2021:
New Ebina Station
started.
About 3 times theshipping capacity✓Change by COVID-19

Rapid increasein demand by
COVID-19～～⇒Shipment capacity limit
exceeded,
new acquisition stopped
24

Domestic Delivery business（Three major brands）

Business impact summary

Domestic Delivery business（Other）

ーShipping capacity of Oisix

Other BusinessIn the short-term, profits have benefited from lower implementation of
PR expenses. On the other hand, future sales have been lost,and immediate measures are needed.
Appropriate growth imageof the subscribe model

Sales accumulate
due to continuous
new acquisitions

newacquisitions※When new acquisition is stopped,◆In the short term

◆In the short term

✓Profit increased due tounspending of PR expenses
due to suspension of newacquisition✓Sales will not seem to decline
in the short term due to increased
demand from existing subscribers
due to COVID-19✓Continued loss of sales of
newly suspended subscribers

newacquisitions

newacquisitions
newacquisitions
newacquisitions

newacquisitions
new
Stop new acquisitionsacquisitions

Lost
sales

Lost
sales

Lost
sales

25

Business impact summary
ーDaichi/Radish-Boya

Daichi

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

Other Business

Radish Boya

Owing to stronger home delivery demand vis-à-vis stay home initiatives,
existing subscriber ARPU increased by some 20%.
(Boost to sales of roughly ¥100mn/month each)
Number of new customers grew as a result of more new inquiries

from natural searches and introductions via Oisix inquiries
There are no issues with shipment capacity currently, but withincreased demand in the future, there is the possibility capacity will be
increased in the future.

to the sudden increase in demand, some products became out of× Due
stock or were sold out.

26

Business impact summaryーResponding to the needs by COVID-19

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

Other BusinessSupporting sales for Hokkaido specialty products, whose demanddecreased significantly due to the impact of COVID-19, under fivebrands operated by Oisix-La-Daichi■ Supporting sales for Hokkaido✔ Implement a project to provide support for producers and manufacturers in Hokkaido due todecreased demand of travelers refraining from going out for the fear of being infected

Approximately 48,000 people helped through purchases and achieved sales ofapproximately 0.15bn yen for all brands

×27

Business impact summary
ーOther Business

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

Other Business

Domestic Delivery business（Other）■EC support（ISETAN DOOR、dmeal kit）
Increased sales due to increased demand for home deliverto Oisix, shipping capacity is approaching the upper limit and× Similar
new acquisition is stopped■Tokushimaru
Due to the refraining from going out, the number of customers and the unit pricefor purchase increase, and the daily sales amount increases by about 10%.

Other Business■HongKong
Earlier than Japan, home delivery demand began growing in mid-Feb.
Sales increased by roughly 30%. Establish a stable shipping system
by securing alternative international transportation■Purple Carrot
The number of shipments doubled as the demand for home delivery
increased sharply. Promote expansion of shipping capacity
28

Business impact summary
ーOther Business

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

Other Business

Other Business■SinS
Owing to stay home pressures and the resultant increase in supermarket
visits, some stores saw higher sales. Others have been hurt
by temporary closure of fresh produce sections within department stores.

■kindergarten wholesale

× Business deteriorated with kindergarten closures that began in April.

■Other Businessthe advertising business, business performance deteriorated
× In
due to the effect of curbing advertising expenses of business partners
at affiliate Welcome Co., Ltd. (Dean & Deluca) fell sharply
× Salesowing to temporary suspension of operations. (goodwill impairment
in 4Q as noted above)29

Domestic Delivery business（Three major brands）

Welcome Goodwill
Impairment Loss

Domestic Delivery business（Other）

Other Business

Sales at affiliate Welcome Co., Ltd. (Dean & Deluca) fell sharply owing

to temporary suspension of operations.

✓ Lifestyle business through retailand restaurant businesses
・・Main Brand ： DEAN＆DELUCA（46 shops）
GEORGE’S（21shops） etc,

Goodwill impairment loss

✔ Whilst business deterioration stems from

special factors only, roughly ¥300mn ingoodwill was written down as an
impairment loss.
(Accounted as a non-operating expense).

✔ Owing to the special factor

noted below, profits at
Welcome Co., Ltd. were below
initial forecasts.
・Temporary closure by COVID-19
・Typhoon impact, etc.

✔ On the other hand, online sales
remained strong✔

Goodwill amortization expenses are
expected to fall beginning next fiscal
year.
（Amortization amount of about 90 mn yen / year）※This item is wholly unrelated to the April 1st
announcement of “US Dean & Deluca’s Chapter 11
Bankruptcy Protection Filing.”

30

Response to COVID-19① Business continuity system② Business impact and support activities
through business③ Other support activities

31

Other support activities
We established “We Support,” a platform linking medical/healthcare
institutions to companies in food-support.
We support healthcare professionals from the “Food” angle.
■ We support
・・A platform that connects medical
institutions with food support companies

Support achievement◆Total amount of
support：About
0.2bn yen◆Support company：

73

・Ajinomoto
・Ito-en・Kagome・Kameda Seika etc.

◆Support medical
institution：

32

・Eiju General Hospital・Tokyo Hikihune Hospital・Tokyo shinagawa Hospital etc.
32

Other support activities
Implement support measures such as agricultural experience for high school
students at contract producers and provision of juice to kindergarten that arerushed for emergency response■ Agricultural Experiencefor High School Students✔ Offer an agricultural experience learning

program at the production sites of ourcontract farmers for high-school students
at home for a school closure■ Juice to kindergarten✔ Providing support for our brand ofjuice to 280 partner nursery schoolsthat are under pressure to responddue to the impact of COVID-19

33

3. Results on Business segment

34

Overview of Business Segments① Domestic Delivery business（Three major brands）
Oisix
Daichi
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business

Real Retail Business35

Domestic Delivery business（Three major brands）

Overview of Business Segments

Domestic Delivery business（Other）

Other Business① Domestic Delivery business（Three major brands）
Oisix
Daichi
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business

Real Retail Business36

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

No. of subscribers：Year-on-year, subscriptions increased
by roughly 40,000 exceeding our initial forecast by 10,000.
ARPU：Both customer basket size and purchase frequency rosedue to increased orders from existing subscribers by COVID-19.

No. of subscribers

Other Business

ARPU※

244,740

244,740（YoY +18.8％） 225,553 230,556

236,836

11,721yen（YoY +4.8％）

205,976

FY2020/3

11,721

11,562

197,272

FY2019/3

11,534

189,352
179,942

11,183

11,127
11,384

11,244
10,616FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2020/3

FY2020/3

FY2020/3

FY2020/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

*ARPU=Average Monthly Revenue Per User

4Q

37

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Other Business

Kit Oisix subscribers：
Increased demand for meal kits resulted in over 150K
subscribers.Continued growth of over 130% at YoY
No. of meal kit course subscribers

Feature of Kit Oisix

150,093１(Includes Oisix subscribers)

Delivers volumes/quantities of food

（YoY +35.0％）

suitable for a given family size. Allows

150,093
128,551

134,895

141,292

preparation of the main dish and sidedish in 20 minutes.

2
All menus contain five or more

111,169

types of vegetables and reflect

consideration for well-balanced

94,841
87,232nutrition.

79,674

3
Uses only safe, reliable ingredientsfrom farmers and manufacturers
under contract to us.
FY2019/3 FY2019/3 FY2019/3 FY2019/3 FY2020/3 FY2020/3 FY2020/3 FY2020/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

38

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）

Other Business

Cumulatively, total unit sales of Kit Oisix has now exceeded 50mn meals.
We continue to develop a variety of menus and services that meet customer needs.
In 4Q, carry out a collaboration project with VERY targeting child-raising moms

Total sales of Kit Oisix

Collaboration in 4Q

Mar. 2020✔ collaboration

50mn overproject with VERY

Nov. 2019

Launch vegan Kit
Dec. 2017

Meal kit selected
for Nikkei MJ hit prediction
Sep. 2014

Launch Chef collaboration
And Frozen Kit

Rapid growth bycapturing the increase
in women's social
advancement anddouble-income
households

2013

Launch Kit Oisix
FY13/3

FY14/3

FY15/3

FY16/3

FY17/3

FY18/3

FY19/3

FY20/339

Domestic Delivery business（Three major brands）

Daichi KPIDomestic Delivery business（Other）

Other BusinessNo. of subscribers：Rate of decline in subscriptions has been shrinking
and we expect a near-bottoming in the second half.
ARPU：Via service solutions that mirror target needs,
we aim to achieve consistent YoY growth.

ARPU※

No. of subscribers

37,18822,170yen（YoY -7.5%）
44,111 43,835（YoY +12.2％）

42,996
40,210FY2019/3
23,67938,571

FY2020/3

37,587 37,257 37,188

22,17021,84821,232

21,443

20,122
19,75819,386FY2019/3 FY2019/3 FY2019/3 FY2019/3 FY2020/3 FY2020/3 FY2020/3 FY2020/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

4Q

4Q

*ARPU=Average Monthly Revenue Per User

40

Domestic Delivery business（Three major brands）

Daichi Topics

Domestic Delivery business（Other）

Other BusinessIn 4Q, we are trying out acquisition methods targeting seniors in their 50s and beyond.
We tried to collaborate with NHK “Today Cuisine"and develop offline channels such as newspaper advertisements

Offline channel development trial◆ Collaboration
with NHK “Today Cuisine"

・・Recorded about 1.5 times
more sales than the normal trial set◆Offline channels

・・Approaching seniors
who do not shop online
41

Domestic Delivery business（Three major brands）

Radish Boya KPI

Domestic Delivery business（Other）

Other BusinessNo. of subscribers：Reduction attained via continued
prioritization of enhanced service levels and restraint in new customer acquisitions.
ARPU：Promote the use of multiple subscription courses
and increase both purchase unit price and frequency

ARPU※

No. of subscribers

57,393

18,681yen（YoY -9.6%）
74,949（YoY +8.2％）

FY2019/3
20,028

72,104
66,23363,461

61,507

18,98859,927 58,655
57,393

FY2020/3

18,681

18,27718,301
17,264

17,177
17,277FY2019/3 FY2019/3 FY2019/3 FY2019/3 FY2020/3 FY2020/3 FY2020/3 FY2020/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

4Q

4Q

*ARPU=Average Monthly Revenue Per User

42

Domestic Delivery business（Three major brands）

Radish Boya Topics

Domestic Delivery business（Other）

Other BusinessIn 2H, we will continue to implement measures for operational excellence.
In 4Q, churn rate decreased mainly new users
due to promotion of usage of multiple subscription services,

operational excellence◆promotion of usageof multiple subscription services

Trial・Improve packing style
3Q
and strengthen inspection⇒Trial set claims 80% reduction

Periodicconversion

・promotion of usageof multiple subscription services⇒Retention rate of new users
increased by about 20%

Purchase
Delivery

4Q・Introducing a course
3Q
where vegetables can be replaced⇒40% increase in purchasing frequency of users

subscription①:「Random Vegetable
Box」+

subscription②:「Subscribe to catalog products」

・Optimization of material amount
3Q~4Q⇒About 50% reduction
in complaints related to material amount

Churn rate

・・Retention rate of new users
increased by about 20%

YoY about 15% decrease
43

Domestic Delivery business（Three major brands）

Overview of Business Segments

Domestic Delivery business（Other）

Other Business① Domestic Delivery business（Three major brands）
Oisix
Daichi
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business

Real Retail Business44

Domestic Delivery business（Three major brands）

EC support

Domestic Delivery business（Other）

Other Business

ISETAN DOOR：No. of subscribers continued to grow steadily in 4Q
dmeal-kit：Preparation for establishment of acquisition channel for next term
ISETAN DOOR

✔ Support for Isetan Mitsukoshi's EC

business Commissioned from operationand management of EC sites to
distribution and delivery✔ No. of subscribers continued to growsteadily in 4Q

dmeal kit

✔ Started in July 2019 in collaboration with NTT

DOCOMO. Offer regular delivery services, mainly
meal kit for NTT DOCOMO’s customers✔ Preparation for establishmentof acquisition channel for next term

45

Domestic Delivery business（Three major brands）

Tokushimaru(subsidiary)

Domestic Delivery business（Other）

Other Business

The value of circulation exceeds 10 bn yen .The number of operating vehicles
increased by 42 units in 4Q, exceeding 500 units
The number of affiliated supermarkets increased by 6 in 4Q as a result ofstrengthening the in-house supervisor system.

The value of circulation

Development Scale

10.71

Number of affiliatedsupermarkets

bn yen（YoY +35.4%）

10.71

Number of vehicles
in operation

515

7.90

125

515

5.55
385

3.60
1.46

303
221

145
FY2016/3

FY2017/3

FY2018/3

FY2019/3

FY2020/3

46

Domestic Delivery business（Three major brands）

Overview of Business Segments

Domestic Delivery business（Other）

Other Business① Domestic Delivery business（Three major brands）
Oisix
Daichi
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business

Real Retail Business47

Domestic Delivery business（Three major brands）

Purple Carrot(U.S.)

Domestic Delivery business（Other）

Other Business

Purple carrot is a 100% vegan meal meal delivery business in the
United States. It will recognize consolidated from 3Q

×・Courier service that offers meal kits
only for plant-based meals
・Weekly subscription model for 48
states across theUnited States

Expansion of Vegan Food × Health✔ Global
Conscious Food of Japanese Foodin both Asia and the U.S.

✔ Expanding management expertise in food
Subscription Model to Purple Carrot toachieve profitability at an early stage48

Domestic Delivery business（Three major brands）※Purple Carrot shows the businesssituation from October toDecember.

Purple Carrot(U.S.)

Domestic Delivery business（Other）

Other Business

Subscribers increased due to the effects of TV publicity。
Achieved a significant reduction in major complaints regarding
quality improvement
Promotion/Sales✔
✔

Quality improvement

New inquiries saw substantial increase
with the airing of a special programon vegan eating habits on Netflix.
Leveraging our domestic delivery know-how,
Purple Carrot introduced set-boxes limited toThanksgiving at the end of November. As aresult, falling orders during holidays were
suppressed✔

"Product quality" "Picking mistakes""Delivery" claims achieved a significant reduction
YoY

Reduction of over 30%
of major claims■ Delivery■ Picking mistake■ Product quality◆No. of subscribers
QoQ

About+20％

FY2019/12
2Q

FY2019/12
3Q

FY2019/12
4Q

FY2018/12
4Q

FY2019/12
1Q

FY2019/12
2Q

FY2019/12
3Q

FY2019/12
4Q

49

Domestic Delivery business（Three major brands）

Hong Kong/Shanghai

Domestic Delivery business（Other）

Other BusinessHong Kong：Focus on establishing a subscription model for Hong Kong people
Shanghai：Decided to develop service centering on "Kit Oisix"

Hong Kong✔ Focused on improving the model of subscribe
for Hong Kong people.
The ratio of subscribers sales is improving,
and the establishment of a model unique toHong Kong is steadily progressing.

✔ In 4Q , we started sales of Japanese
fresh milk.

Shanghai
the aim of establishing a Chinese subscription✔ Withmodel, CXO will be based in China
to identify needs
Having confirmed a healthy low-fat diet, room for✔ cooking skills improvement, and the role “Kit Oisix”
could play as a potential solution, we look to expand
locally.

50

Domestic Delivery business（Three major brands）

Real Retail Business

Domestic Delivery business（Other）

Other Business

SinS：We have continued to expand Kit Oisix sales shops to enhance brandtouch-points
Kindergarten Wholesale：Steadily expanding the No. of trading kindergartens

Shop in Shop

Kindergarten Wholesale

Sales

0.77

Sales

0.96

bn yenbn yenNo. of shops

No. of tradingkindergartens

157

373
0.77

0.72

0.96

0.77
0.78

0.41

0.44

0.13

FY2017/3

FY2018/3

FY2019/3

FY2020/3

FY2017/3

FY2018/3

FY2019/3

FY2020/351Domestic Delivery business（Three major brands）

Future Food Fund

Domestic Delivery business（Other）

Other Business

The CVC "Future Food Fund," a fund specialized in the food innovation field,
has successfully raised about ¥2bn. We have decided to invest in HiOLi Co., Ltd.,the operator of Craft Icecream ShopNEW

Food Start-ups◆HiOli Co. ltd.,(Tokyo, Japan)

・Operation of craft ice cream
shop "HiO ICE CREAM"◆MiL Co. ltd.,(Tokyo, Japan)

・Develop and sell
”Mi+Mitas” subscription
milk-free foods

NEW◆FarmNote Co. Ltd.,(Hokkaido, Japan)

・Delelopment of cattleherd management cloudsystem/wearable devices◆Fifty Food Inc.
(San Francisco, U.S.)

・Development and salesof vegan instant noodles
52

BCP improvement progress
In addition to measures to prevent the recurrence of the trouble itself,
In the event of an emergency, we will formulate a plan that will enable swift
response and immediate resumption of business.

◆Troubles in FY2020/3
Mainly at Oisix Ebina Station✓ elevator trouble✓ Typhoon Impact
Business continuity risk has become apparent◆BCP improvement progress✓ Installation of collision prevention sensors near elevators in the warehouse✓ Emergency manual update✓ Regular risk assessment for each distribution center

53

4.FY2021/3 Strategy

54

Strengths of Our Business Model
We have assets and know-how exclusively focused on end-to-end food delivery
and subscription services.
Producers

Consumers

Oisix ra daichi

Fruit and Vegetable Producers

4,000 producers
nationwide

１Company's
Strengths

Direct Networkwith Producers

Radish Boya
Daichi

340,000 households(Total of Oisix, Daichi andRadish Boya)

Regular delivery

5,000 companies

Procurement

Manufacturers

Subscribers

Oisix

2

Subscription
Marketing

3 One of the largest distribution centers in Japan supporting
our food and subscription services
and meal kit manufacturing plant55

Business phase of theHome delivery business
Implementing brand strategies that consider each of the brands’ business phases.

Main Target

Phase:
Launch of Business

Phase:
Business Expansion

Accelerating Business Growthby capturing increased needs“Premium time savings”

Working mothers busy
balancing work andchildcare

Seniors in their late
50s and older withhealth concerns

Phase:Creation of products
and services

・”Chanto”Oisix

Completed(FY3/2020 2Q)

・Oisix・Kit Oisix

Product and service
development
in line with targets
Ongoing(“Daichi no Yasai
Okazu Set”Etc.,)

Full-time housewives in their
40s and 50s who want toimprove their cooking skills

Executing operation
excellence

Ongoing

Scheduled(FY3/2021 3Q～)

56

Executive summary
ーFY2021/3 strategy✔

The FY2020/3 strategy assumed that in addition
to growth measures according to each business phase,
we implement profitability enhancement measures✔

However, new needs such as “increased demand for home delivery” and“increased meal opportunities at home”
It is expected that the trend will continue in the future,
although the temporary increase in needs will come to an end.
We will prioritize expansion of logistics capacity and securing of products
for stable shipment.

✔

For business growth of the three home delivery brands,
we implement measures based on the customer needs that have changed
with COVID-19, centered on the measures for each brand phase✔

Regarding the profitability enhancement of the home delivery business,
which was a priority strategy in FY2020, some measures need to bereviewed due to the impact of COVID-19
However, by implementing new measures, we will continue activities sothat we can achieve the existing impact of strengthening profits.
57

FY2021/3 New strategy
Past Strategy

New strategy
New strategy1

Build a stableshipping system◆ Implement a growthstrategy according
to business phases＋◆ profitability enhancement

New strategy2
Implement a growth strategy
that responds to changes
in food needs with COVID-19
・・Responding to customer needs
by COVID-19 based on existing strategies

New strategy3
Implement profitability
enhancement measuresthat reflect COVID-19
・・Review some measuresand add new measures by COVID-19

58

FY2021/3 Strategy
New strategy
New strategy1

Build a stableshipping system
New strategy２

Implement a growth strategy
that responds to changes
in food needs with COVID-19
New strategy3

Implement profitability
enhancement measuresthat reflect COVID-19
59

New strategy No.1
-Build a stable shipping system
We implemented multiple measures to expand physical capacity.
And we aim to completely resume acquisition of new members assoon as possible■Logistics Capacity Outlook of Oisix
Past✓ Only the current
Ebina station⇒New acquisition
stoped for 1 monthdue to capacity

Sep. 2021～

Current✓ Launch new service

with small SKUs
✓ Expanded satellite center in Fujisawa✓ New Ebina station
consolidation(for small SKU service only)✓ Use a part of Radish Boya

(About 3 times
the shipping capacityof the current distribution center)

Zama station (trial set)
⇒Resumed new acquisitions
gradually from the end of Apr.
Current
Ebina

Zama

+

Fujisawa

Satellite center
expansionplanned inautumn 2020

New Ebina

×60

New strategy No.1
-Build a stable shipping system
Expanded shipping capacity by starting small SKU service and utilizing
Fujisawa's satellite center.
Also, in order to secure product supply, we will expand cropping and cultivate
new contract producers.
■Launch new service
with small SKUs

■Securing a stable product supply✓Expand shipping capacity bylaunching services with small SKUs
and utilizing satellite centers✓To meet the increasing demand,
・ Increase in cropping amountwith existing contract producers
・ Develop new contract producers✓Specialized service forshortening cooking time andshopping time

✓At the same time, we support
for producers who are sufferingfrom reduced demand for restaurants
61

FY2021/3 Strategy
New strategy
New strategy1

Build a stableshipping system
New strategy２

Implement a growth strategy
that responds to changes
in food needs with COVID-19
New strategy3

Implement profitability
enhancement measuresthat reflect COVID-19
62

New strategy No.2
-Implement a growth strategy that responds tochanges in food needs with COVID-19

Develop services that respond to changing customer needs with COVID-19,
centered on business strategies in line with the growth phase of eachbusiness segment
Accelerate the speed of expansion ofoperating number+
Shopping support for the elderly
revealed by COVID-19

Strengthen premium
time saving value＋
Response to diversificationof meal needs at home
By COVID-19

Continue to improve operations+
Expand shipping capacity
to meet increased home delivery
needs by COVID-19

Transition to re-expansion phase＋
Response to healthand immune improvement
by COVID-19
Hong Kong

Continue to refine operations+
Providing services
that make cooking time at homemore enjoyable with COVID-19

China

Expand / establish subscription
services+
Response to food needs revealed
by COVID-19
Start service of meal kit+
COVID-19 to meet diversified
home meal needs

63

Oisix Strategy-Kit Oisix/ Chanto Oisix
Not only will “Kit Oisix” and “Chanto Oisix” be strengthened in their “Premium
Jitan (time saving)” value aspect, we will also be addressing the ever morediverse needs of our customers vis-à-vis COVID-19.

Main Strategy✓ Improve product value

・Shelf life extension
・Review price range etc.,

For With COVID-19✓ Response to diversificationof meal needs at home
by COVID-19
・Food education⇒Shimajiro
Collaboration
・Health / immunity⇒Part Time Vegan

・Expanded menu withmultiple patterns
to choose from etc.,

・Increased family dining opportunities⇒Menu for 3-4 people
・New needs for dine
⇒Saving / Lunch Menu
64

Oisix Strategy Topics
Reservation for Kit Oisix "Harumi Lesson" with online video firstsupervised by cook Harumi Kurihara started from 5/21
Kit Oisix supervised by cook Harumi Kurihara✓ We provide a set of lesson videos to provide youwith a fun cooking time for home dining needs increased by COVID-19

65

Oisix Strategy Topics
The “home restaurant”, which was started as a support for the restaurant business that wasaffected by corona, was well received by many customers and opened as a permanent site.
We will continue to strengthen our alliance with the restaurant businessRestaurant in Home

Current✓It is expected that eating out will
be restrained even in With COVID19, and a "Restaurant in Home" will be permanently installed as a
new table proposal.
Q:Would you like to go out
to eat in with COVID-19?
No Go

See how it goes

Go

NEW

+

Collaboration
with 3 top
chefs(5/28～)

Reducefrequency

New partnershipwith popular
restaurants(After Jun.)

66

Daichi Strategy
As we implement initiatives for subscriber growth once more, we aim to enhance
our appeal via content related to heightened health and immunology interests
stimulated by COVID-19.

Main Strategy✓Re-expand subscribers
・Development of media
for attracting customers to seniors

For With COVID-19✓Response to health /immunity improvement
・Collaboration with "Dr. Croissant"✓Improving the valueof Daichi vegetable sets
・Development of new productsthat you want to buy together
・Review the price range of the set itself
and the side dishes

・Proposal of "immune diet" under
the supervision of "NHK Publishing"67

Radish Boya Strategy
To ensure continued decline in churn, operational excellence measures will be
continued. We will also be providing a variety of services to retain subscribers
joining as a result of COVID-19.

Main Strategy

For With COVID-19✓ Eliminating negative
experiences thatlead to cancellation✓ Improving subscribers
loyalty due to COVID-19

・Eliminating the experience of
discarding too much vegetables
・Further improvement of
product quality

・ Providing services that make cooking fun⇒Farmer's online cooking class▶

・Reduction of cardboard boxes⇒Weekend meal Kit

68

Tokushimaru Strategy
As part of social infrastructure for shopping refugees, we look to accelerate
expansion of vehicle fleets to not only realize overwhelming presence,but to fulfill needs of the elderly newly made apparent by COVID-19.

Main Strategy

For With COVID-19✓Accelerate the speedof expansion of operating
units to establish social
infrastructure

・New partnership with Ito-Yokado ✓Responding to the needsof various elderly people
revealed by COVID-19⇒Started operation at Minami Osawa
store from 4/30

・Achieved developmentin 47 prefectures nationwide

・Prevention of 100,000 yen
benefit fraud etc.,
・Strengthening the businessof watching over elderly people
in partnership with the community

69

Overseas delivery Strategy
While maintaining core strategies, we are developing overseas
services/infrastructure able to provide subscription services in a robust
manner as home dining needs grow.

Main Strategy✓Further improvementof delivery quality
and operation
・Launching a department specializing
in improving customer satisfaction✓Expand and establish services
that utilize Japanese know-how

Hong Kong

・Start a new subscribe course
・Establishing a channel
to attract customers
that can be stably acquired

For With COVID-19✓Expanding capacity to meetthe rapidly increasing demand
for COVID-19＋Strengthen customer support✓ Response to diversificationof meal needs at home
by COVID-19(Hong Kong)
・Expanded lineup of frozen side dishes
that can be easily cooked and stocked

Shanghai✓Start of subscription
service centeredon meal kits・Scheduled to be releasedaround the summer of 2020

（Shanghai）
・Proposal of meal kit
for overseas cuisine70

Outlook for CRAZY KITCHEN/
DEAN&DELUCA
The impact of self-restraint measures to mitigate the spread of COVID-19 has
worsened. We aim to resume business and recover business performance while
exploring new possibilities amidst new lifestyles and values.

CRAZY KITCHEN(subsidiary)

WELCOME(DEAN & DELUCA)(Affiliate)◆Current◆Current✔ Since March, orders for catering and events have

✔ Significant sales decrease as a result of shortening◆Outlook◆Outlook✔ Project participation in medical support (We support)✔ Starting from May 11th, some stores will resume

been canceled and business is suspended✔ Focus on activities to create new businesses, suchas providing food for online weddings

business hours and implementing temporary closures

operations centered on delivery and takeout✔ Although the impact of corona will continue in the firsthalf of the year, we aim to recover earnings from thesecond half71

FY2021/3 Strategy
New strategy
New strategy1

Build a stableshipping system
New strategy２

Implement a growth strategy
that responds to changes
in food needs with COVID-19
New strategy3

Implement profitability
enhancement measuresthat reflect COVID-19
72

4 conventional strategies
Marginal
profit4 conventional strategies■Efforts to improve product costs

1
Product
Costs

Logistics/
delivery costs

2 Reduce products costby accelerating the shift to SPA■Initiatives to improve distribution
centers and distribution costs
3 Reduce distribution center costs by starting
operation of a new distribution station in Oisix
COVID-19
EffectPrice/
purchase

Improvement of Procurement
Logistics through ”VegeNeco” Project⇒Until the new logistics ST operation (September2021), productivity is deteriorated due toexpansion of satellite center■To reduce the ratio of fixed operating costs

4
COVID-19
EffectOther SG&A
costs

Improve average customer spend
by strengthening product lineup⇒SKUs are difficult to increase
due to tight shipping capacity73New profitability
Enhancement strategy
Marginal
profitProduct
Costs

New 4+1 Strategy

Before 4 Strategy

Marginal profit +3.0pt～5.0pt■Efforts to improve
product costs※Scheduled to be completed in 3 years■Efforts to improve product costs

1

Improvement of Procurement
Logistics through”VegeNeco” Project1

Improvement of Procurement
Logistics through ”VegeNeco” Project2

Reduce products costby accelerating the shift to SPA

2Reduce products costby accelerating the shift to SPA▲1.0pt～▲3.0pt■Initiatives to improve distribution
centers and distribution costs

3

Price/
purchase

Reduce distribution center
costs by starting
operation of a new
distribution station in Oisix

Logistics/
delivery costs■To reduce the ratioof fixed operating costs

4
Other SG&A
costs

Improve average customer spend
by strengthening product lineup▲0.5pt～▲1.0pt■Initiatives to improve distribution
centers and distribution costs

3

Reduce distribution center
costs by starting
operation of a new
distribution station in Oisix▲1.0ptby consolidating collection centers▲0.3pt3’ Cost reduction■To reduce the ratioof fixed operating costs

4

NEW

Unit price improvement due to increased use ofmultiple subscription services

NEW▲0.3pt～▲0.5pt
74

“VegeNeco”Project
Good progress in our joint project with Yamato Transport.
We commenced joint transport logistics in Nagasaki Prefecture
and aim to operate in the whole of Kyushu Area by 2Q
1“VegeNeco”Project
Before：▲0.5pt ～ ▲1.0pt
Progress

Distribution Center

After
Distribution Center

Consolidate procurement to Yamato
Transport and reduce product costs✓ Started full-scale operationof consolidated procurement
in Nagasaki Prefecture from 4Q✓ By the 2nd quarter of this term,
operation is planned to start allover Kyushu area.
Completion of service information
for producers nationwide
by the end of this fiscal year
✓ We will also promote development
to processed products75

Accelerating the shift to SPA
Rather than merely becoming a "platforms," we will strengthen development andmanufacturing.
We are focusing on pork processing, vegetable/fruit packaging and others to reduce
manufacturing costs.

２ Accelerating the shift to SPA ：▲1.0pt ～ ▲3.0pt■In-house meat processing✓ We are focusing on in-house meat
processing where significant cost reductions
can be had and where quality improvement
potential is large■in-house packaging/cutting operatio
for vegetables and fruits✓ We look to bring in-housepackaging/cutting operations forvegetables and fruits by shifting such workto our own fruit and vegetable centers✓ We aim to increase in-houseproduction from 30% currently toroughly 70% by March-end 2021.

76

Investing in and reorganizing
distribution centers
Construction of a new Ebina Station, which is scheduled to start operation in
September 2021, has started.
In addition, financing is completed
3

Started operationof a new distribution station in Oisix ：▲1.0pt◆Image ofa new distribution stationin Oisix

Progress✓ We completed fund raising of roughly¥4.5 billion for capital investment in
distribution centers via issuance of newshares in March.

✓ About 300% increase in shipping
capacity. Function conversion of thecurrent center into a manufacturingbase for Kit Oisix✓ Initial investment is expected to be about 3 billion,
but return on investment is expected as soon as
possible by reducing logistics center costs by 1.0pt.

✓ Construction work will start
as scheduled from April this year.
Scheduled to start operationin September 2021

77

(Ref) Public offering on Mar.2020
In March 2020, a public offering was conducted to raise capitalfor the New Ebina Station.
Financing of about 4.6 bn yen completed.

Use of Funds Raised
Expected investment amount
Office(Location)

New Ebina Station（Ebina, Kanagawa）
New Ebina Station（Ebina, Kanagawa）
Head office（Shinagawa-ku, Tokyo）

Businesssegment

Home delivery
business（Oisix）
Home delivery
business（Oisix）
Common to alldivisions

Equipment

Total(1,000 yen)Amount paid
(1,000 yen)

Building andmachineryequipment

3,200,000―

Softwaredevelopment, etc.

470,000―

Softwaredevelopment, etc.

✔ Invest in new Oisix distribution
stations :about 3.7bn yen

880,000―

Scheduled start and completion
Funding
methodcapital increasefund
own fundcapital increasefund
own fundcapital increasefund
own fundIncreasedcapacity after
completion

Start

Completion

April 2020

October 2021

Shipping scale: up
to 300%August 2020

October 2021

Shipping scale: up
to 300%March 2023

Improvement ininvestment
efficiency anddevelopment speed

April 2020

✔ Invest to improve the productivity anddevelopment speed of the systeminfrastructure for three home delivery
service brands :about 0.9bn yen

78

Establishing of collection
center of Radish Boya

NEW

Where producers nationwide have been delivering individually, enhanced
efficiencies and CoGS reduction are expected by establishing the collection
center of Radish Boya’s distribution center.

・Establishing of collection center of Radish Boya ：▲0.3pt
Before

●

●

●

●

●

After

●

●

●
Collection Center（East Japan）

Distribution Distribution Distribution Distribution
CenterCenterCenterCenter
D
A
B
C✓ Procurement and logistical costs are high under
existing practices where producers nationwide
deliver individually to varying distribution centers.

Collection Center（West Japan）

Distribution Distribution Distribution Distribution
CenterCenterCenterCenter
D
A
B
C✓ Reducing procurement costs
by consolidating suppliers
79Promoting the use of several
subscription coursesNEW

By promoting the use of several subscription courses,
we aim to enhance average customer baskets
and reduce the proportion of fixed operating expenses.
4

Promoting the use：▲0.3pt ～ ▲0.5pt
of several subscription courses

Kit Oisix

Daichi Vegetable set“Palette”

Part time Vegan

Other subscription
courses

Subscription
For Catalogue items

Main
subscription
courses+
Additional
subscription
courses80

5. FY2021/3 Outlook

81

Consolidated Outlook Overview

Sales and profits are expected to increase, reflecting the increased
demand for home delivery due to COVID-19 and the impact
of stagnation in consumer sentiment.

Sales

Operating
Income78.00bn yen EBITDA 4.40bn yen(YoY +10％)

3.00bn yen(YoY +22％)(YoY +22％)

Net
incomeAttributable toowners of theparent1.20bn yen(YoY +52％)82

※For the purposes of like-for-like YoY comparisons,
one extra month of Radish Boya data (March 2018)
was deducted from FY 3/2019 data.

Consolidated Outlook Overview

Sales and profits are expected to increase, reflecting the increased
demand for home delivery due to COVID-19 and the impact
of stagnation in consumer sentiment.
Sales

Operating Income

EBITDA

78.00

bn yen(YoY +10%)

4.40(YoY +22%)

2.46
2.24

FY
2020/3FY
2021/3
OutlookFY
2018/3FY
2019/30.89

FY
2020/3FY
2021/3
OutlookFY
2018/3

Including Extraordinary
factors

1.67

Including Extraordinary
factors

FY
2019/33.00

3.08

Including Extraordinary
factors

FY
2018/3(YoY +22%)

3.59

62.43

39.98

bn yen

4.40

78.00
71.04

3.00

bn yenFY
2019/3FY
2020/3FY
2021/3
Outlook83

FY2021/3 Sales Outlook
Sales will grow steadily with the three home delivery brands.
On the other hand, the real business is expected to decrease
due to the large impact of COVID-19

Sales Outlook

About
2.0

71.05

About
7.0

62.43

About
2.0

Increased sales
due to full-year
consolidation of
Purple Carrot

78.00

Decrease inother businessBusiness
growth ofthree homedeliverybrands

39.98

YoY

about

+7.0bn yen
FY2018/3

FY2019/3

FY2020/3

FY2021/3(Outlook)84

FY2021/3 Profit Outlook
Profit significantly increased in EBITDA, operating income and net income.
The difference from the previous term is that of Purple Carrot
Expected to increase goodwill due to full-year consolidationand increase loss at affiliated companies due to COVID-19 impact

Profit Outlook

4.40

Increase in goodwill due tothe full-year consolidationof Purple Carrot/
Increase depreciation

1.40

Increase loss ataffiliated companies
due to COVID-19
impact3.00

goodwill・
depreciation

About
0.60
Non-operating loss

About
1.20

1.20

Corporate tax

EBITDA

Oparating Income

Net income
85

Business segment Results
OutlookMarginal profit Outlook
Sales Outlook

Home Delivery Business

Oisix

43.00bn yen 6.15bn yen(YoY +20％)

Daichi(YoY ＋9％)14.00bn yen 2.55bn yen(YoY -7％)

Other
Business(YoY ＋28％)

11.00bn yen 2.05bn yen(YoY +4％)

RadishBoya（Exclude the impact
of goodwill amortization）(YoY -4％)

10.00bn yen 0.90bn yen(YoY +5％)(YoY +7％)

FY2020 Strategy
New acquisition stopped
due to distribution capacity over.
Working to increase capacity as a top priority
Profitability also increased in the short term
due to undigested PR expenses

Increase sales by expanding
the number of subscribers.
In addition, continue to evolve products
and services to improve LTV

Subscribers aim to stop lowering thisterm.
Thoroughly improve service levels
as a preparation period for growthfrom next term
Due to the impact of COVID-19, sales
will increase in the full-year
consolidated period of Purple Carrot,
while sales in the real segment will
decline.
Profit increased due to improvement in
Purple Carrot's profit86Outlook of subscribers/
3 brands business growth
In accordance with management expertise in Subscription delivery,
we properly implement business strategies in line with the businessphases of each brand during the FY2020/3 period
Outlook of subscribers

367,000（+28,000）

339,000
310,000
57,393▲5,000Radish Boya
52,000Daichi63,461
37,188Daichi40,000+3,00040,210205,976

Radish Boya

244,740

Oisix

Oisix

+30,000

275,000Note) The increase in Oisix subscribers
reflects the impactof the recent suspension of new acquisitions.
FY2019/3

FY2020/3

FY2021/3（Outlook）

87

Notice Concerning Change of Stock
Market Listing to First Section of the TSE

On April 9, 2020, the Company changed its market
from TSE Mothers to First Section of the TSE.
We would like to express our sincere gratitude forthe support of many people.

We intend to fulfill our role faster and more flexibly
with a greater sense of responsibility.

Thank you for your continued support.

88

5. APPENDIX・DATA SHEET

89

Corporate Overview

Name：

Oisix ra daichi Inc.

Location：

Shinagawa-ku, Tokyo

Established：

June 2000

Representative： Kohey Takashima, Representative Director & CEO
Capital：1,690,928 thousand yen

Employees：

860 (consolidated), as of the end of March 202090

Overview of Affiliates
Consolidated subsidiaries
Tokushi-maru Inc.

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

Fruits Basket Co., Ltd.

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

Karabiner Inc.

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

Crazy Kitchen Co., Ltd.

Handles catering, event production, and space production businesses.

Oisix Hong Kong Co.,Ltd.

Operates our businesses in Hong Kong under contract.

Oisix Shanghai Co., Ltd.

Operates the food products home delivery business in China.

Purple Carrot

Meal kit delivery service in the United States

Oisix Inc.

Overseas investment business

Future Food Fund Inc.

Investment business for food-related startup companies

Future Food Fund No.1
investment limited partnership

Investment business for food-related startup companies

Affiliates
Nihon Agri Inc.

Exports agricultural products.

DEAN & DELUCA

Lifestyle business through retail and restaurant businesses
91Trend in No. of Employees

860
735
680

421

163

179

FY2012FY2013192

FY2014210

FY2015FY2017/3

FY2018/3(Consolidated)

FY2019/3(Consolidated)

FY2020/3(Consolidated)92

Main Business Risks
Effects of poor weather
Fresh produce accounts for about 30 % of Group sales. We deploy astructure for fresh produce that makes it possible to secure supplies
from other regions if poor weather in specific regions prevents harvests
or results in poor quality. The system distributes transactions and inprinciple allows procurement of key products from multiple producer
regions. Nevertheless, poor weather lasting longer and having more
broad-ranging effects than expected may lead to product shortages andquality issues, with potential consequences for Group businesses andbusiness results.

Effects of concentrationof logistics centers

Issues related to food safety
We have established proprietary standards for the products handled for all our
major brands. Whenever possible, we seek to offer produce grown without
pesticides or chemical fertilizers. Our processed food products are made using the
fewest possible additives. We have also established unique inspection systems for
produce (including inspections of production sites and testing for residual
pesticides) and processed food products (including use of third-party experts andindependent institutions). We also strive to secure appropriate quality and safetythat can be objectively demonstrated and evaluated through health and safety
management guidance provided to suppliers and other means.
Nevertheless, it remains possible that those who produce the products we offer
may provide misleading or fraudulent labels regarding use of pesticides andsimilar matters or provide false quality information. Such cases could well lead torebuke or penalties from regulators, customer complaints, and compensation fordamages, in turn damaging the image of the Group’s brands or leading to a lossof confidence in the Group and potentially affecting Group businesses andbusiness results.

Effects of relationshipwith Yamato Transport Co., Ltd.

We operate our own logistics centers, where logistics functions such as

Most deliveries of the Group’s products to subscribers are handled byinspection, storage, sorting, and packing of our products are

Yamato Transport. While the Group strives to maintain a favorable ties

concentrated. For the most part, products under the Oisix brand areto Yamato while building relationships with alternative delivery services,shipped to customers through our logistics center located in the city of

due to current conditions in the logistics business, if the Yamato Group

Ebina, Kanagawa Prefecture. Those under the DWMK brand are shipped

were to demand a major increase in delivery fees or if transaction

through a center located in the city of Narashino, Chiba Prefecture. If a

volumes between us were to shrink, the resulting changes may affectnatural disaster, fire, or other cause were render either or both logistics

Group businesses and business results.

centers unable to operate, potential consequences include inventory
losses, shipping delay, and temporary suspension of services, which inturn would affect Group businesses and business results.

93

Our Subscription Model
Expanding our business areas to include alliances and marketing support
for other companies based on subscription model strengths in our threehome delivery brands.
consumers

Our Strength

Home delivery

Marketing forhome delivery
subscriptions

Own brand

Alliance
Managing subscriptions
to ensure thoroughmanagement ofrevenue structures
Purchasing
Producers

Subscription networkwith producers

94What Our Three Brands Deliver
Based on the distribution of safe, reliable food products, each of our threebrands delivers products tailored to the lives and values of our customers.
Working mothers withsmall children

Mothers focusing on
the home and children

Senior women in twoperson households

Meals that can be boasted
without taking time

Self realization
through Cooking

Healthy daily living

Producers

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

Rigorous managementof unit revenues and expenditures

Setting a period to recoup CPA and rigorously

Making percentages of loss-making deliveries visible

managing CPA within this range

for each unit and reducing them structurally

Building a sustained profit stream

ProfitCPA
recovery
periodPriceperpurchase

Profit LTV
Profitabledeliveries

0
Time
CPA

CPA: cost per acquisition
Profit LTV: lifetime acquisition value

Loss-making
deliveries
Subscribers

96Subscription Network
Reducing risks and securing stable transactions through a subscription
network based on 4,000 producers nationwide and procurement undertransaction conditions arranged in advance
Typical distribution of agricultural products

Consumers

Retail store
Wholesale market

Purchase prices vary
widely withproduction
conditions.

Inability to control
volumes purchased
and prices due tomarket conditions

consumers
Purchases at stablepricing regardless ofmarket conditions

Oisix ra daichi

Facilitating demand
control/projections
through sales plans
based on projectedsupply volumes

Advance purchase commitment basedon specified product types,
quantities, timing, and prices

Agricultural cooperative

Producers

Our efforts

Revenue prospects
unclear due to pricevariations resulting
from market
conditions

Producers

Clear revenue
projections to backsound investment
decisions97Differences in the assetsof the three brands

How tojoin

How toorder

Logistics
bases

Last OneMile

WEB mainlyWEB/
door-to-door sales

WEB mainly

WEB only

WEB/
Paper catalogs/
TEL

WEB/
Paper catalogs/
TEL

1 placein Kanagawa

6 placesin Hokkaido, Miyagi,
Tokyo, Kanagawa,
Aichi, Osaka,.

1 placein Chiba

Yamato trucks
approximately 99％

Our trucks
approximately 95％（area around
Logistics bases）

Our trucks
approximately 85％（area aroundmetropolitan area）
98

EC support
Utilizing the subscription know-how and assets that we have got
in the domestic food delivery business, which is our strength,
we develop the business of supporting other companies' EC

99

Tokushimaru
Offering mobile supermarkets for seniors and “shopping refugees” difficult
to approach via the Internet
Business model
Tokushimaru
Headquarters
Contractual fees
Royalties

Brands, expertise,
information provision

Regional supermarkets
Bases for supply of products

13％
Products

Product gross profits
30％
17％

Sales partners

In-person
sales

Owner-operators＋5 yen＋5 yenCustomers+10 yen rule

100

Overseas Home Delivery
Hong 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
U.S. Meal Kit Market*

Oisix Shanghai
the service in 2017.
✔ Started
Grasp the needs to establish$2.5

the subscription model for
Chinese customers

Billion
USD

2017

$9
Billion
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 ofcoronavirus, both users andsales are dramaticallyincreasing×
expansion of vegan food x Japanese✔ Globalfood “Health Conscious Food” both in Asiaand the U.S.

✔ Recognize consolidated from FY2020/3 3Q* Hexa Research『Global Meal kit Delivery Service Market Size And Forecast,
101/ByType (Fresh Food, Process Food) And Trend Analysis, 2015 - 2025』

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

102

Kindergarten wholesale
The kindergarten wholesale business was launched in FY2015. Based on the Omakase Boya systemthat makes it possible to order ingredients for student meals based on menus,
it provides support for kindergarten operations in both serving meals and nutrition.
Oisix ra daichi

Kindergarten

Omakase Boya system
for receiving orders from kindergartens

Producers

Ordering◆Stable purchases of safe produce andprocessed food meeting strict standards◆A wide-ranging product lineup thateliminates the need for additional purchasing

Deliveryon
Requested
date

Purchase◆Full-time senior nutritionists develop uniquemenus for use by kindergartens; they also
respond to requests for nutritional
consultations.
◆Easy ordering using a simplified Web form
◆Simplified single supplier management103Business Solutions
We propose B2B business solutions based on our safe, reliable products,
outstanding customer base, and expertise in subscription-based EC.

EC consulting
Solutions support basedon our expertise in repeat marketing,site user interface/user experience
improvements,
food logistics in three temperaturezones, securing new EC customers,
and omni-channel management

Ad Oisix:

Tavelty：

Periodic advertisements
delivered to subscribers

seasonal vegetablenovelty products

In addition to an EC site that boasts 1.2
million unique views per month, thisservice delivers advertising to about
300,000 households, including
subscribers to DWMK and Radish Boya.

We offer novelty products basedon our expertise in service,products, and delivery, establishedthrough more than 3 million
regular deliveries a year.

104

DATA SHEET：Results
Results
FY2018/3/3（mn yen）

Sales

1Q

2Q

3Q

FY2019/3/3

4Q

1Q

2Q

3Q

FY2020/3/3

4Q

1Q

2Q

3Q

FY2020/3

4Q

1Q

2Q

3Q

4Q

5,379 10,718 17,113 23,016 9,602 18,935 30,007 39,987 16,853 31,720 48,906 64,026 16,265 32,552 52,425 71,040

Operating
Profit

169

270

625

752

141

237

891

610 1,115 2,265 2,312

543

EBITDA

225

391

810

996

320

635 1,282 1,670

808 1,513 2,882 3,154

755 1,348 2,381 3,595

381NetincomeAttributabl
e toowners ofthe parent

119

187

429

515

72

93

537

270

692

336

237

893 2,533 2,387

900 1,597 2,467

390

695

790

105

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

1Q
Sales

Oisix

2Q

FY2019/3

3Q

4Q

1Q

5,790 11,470 18,481 24,799

2Q

3Q

FY2020/3
4Q

6,863 13,769 22,190 29,619

1Q

2Q

3Q

4Q

8,308 16,524 26,522 35,829

Marginal
profit

674

1,392

2,421

3,288

970

1,943

3,371

4,036

933

1,868

3,261

Sales

2,790

5,487

8,508 11,215

2,769

5,440

8,405 10,902

2,587

5,137

7,936 10,541

Marginal
profit

539

1,078

1,650

2,095

479

960

1,989

457

885

Sales

-

-

-

-

5,811

9,926 14,346 18,028

3,770

Marginal
profit

-

-

-

-

1,030

1,765

2,657

3,342

688

1,273

2,001

2,667

Sales

1,109

2,163

3,263

4,250

1,482

2,755

4,198

5,793

1,663

3,529

6,383

9,497

Marginal
profit

185

384

571

760

154

290

479

724

256

557

656

846

Companywide fixed
costs,
Goodwill etc

1,257

2,853

3,951

5,253

2,024

3,844

5,779

7,779

1,792

3,683

5,719

7,736

DWMK

RadishBoya

OtherBusiness

1,536

1,397

4,801

1,889

7,459 11,410 14,980

106

Data Sheet：Main KPIKPI trend
FY2018/3

Oisix

DWMK

RadishBoya

FY2019/3

FY2020/3

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Subscribers(number)

169,664

179,942

189,352

197,272

205,976

225,553

230,556

236,836

244,740

ARPU
（yen）

11,602

11,562

11,127

11,534

11,183

11,244

10,616

11,384

11,721Price/
purchase
（yen）

5,925

6,002

5,973

6,150

6,015

5,887

5,839

6,056

6,152

Purchase
Frequency(number)

1.96

1.93

1.86

1.88

1.86

1.91

1.82

1.88

1.91

Subscribers(number)

44,933

44,111

43,83542,996

40,21038,571

37,587

37,25737,188

ARPU（yen）

19,24020,122

19,386

21,84819,75821,232

21,443

23,67922,170Price/
purchase
（yen）

7,726

7,770

7,553

8,529

7,811

7,990

8,026

8,472

8,386

Purchase
Frequency(number)

2.49

2.59

2.57

2.56

2.53

2.66

2.67

2.79

2.64

Subscribers(number)

78,062

74,94972,101

66,233

63,14461,50759,92758,65557,393

ARPU（yen）

16,63917,277

17,177

18,98817,26418,301

18,27720,02818,681Price/
purchase
（yen）

5,278

5,460

5,616

6,114

5,869

6,055

6,060

6,398

6,296

Purchase
Frequency(number)

3.15

3.16

3.06

3.11

2.94

3.02

3.02

3.13

3.01

107

Disclaimers◆This material is intended to provide an understanding of Oisix ra daichi activities,

not to solicit investment◆Forecasts of Oisix ra Daichi’s operating results and future performance are based on information

available to Oisix ra daichi at the time this material was drafted and are not guaranteed to beaccurate.
Actual operating results may differ from the future outlooks contained in this material.

108