FY2019/3 2QResults
Explanatory Materials

Oisix ra daichi Inc
2018.11.20

目次

1. FY3/2019 2Q Achievements
2. Results Forecast Revisions
3. About Our Subscription Model
4. Topics in Addressing Food-related Issues
5. APPENDIX・DATA SHEET

1

1. FY3/2019 2Q Achievements2

1H Highlights
Sales

Note） Radish Boya figures are for 7
months, March to September,to reflect a change in fiscal year end.

31.72bn yen

EBITDA※1(YoY +67.5％)

Operating
Profit1.11bn yen

1.51bn yen(YoY +138.1％)

0.89bn yen

Net income
Attributable toowners of theparent(YoY +369.5％)(YoY +856.2％)

Home Delivery Business
Oisix

DWMK

Sales

Sales

13.76bn yen(YoY +20.0％)

5.44bn yen(YoY -0.9％)

Marginal profit

Marginal profit(YoY +39.6％)(YoY -10.9％)

1.94bn yen※2

0.96bn yen

Radish Boya
Sales

9.92bn yen

Other Business
※2

Sales

2.75bn yen(YoY ー ％)(YoY +27.4％)

Marginal profit

Marginal profit(YoY ー ％)(YoY -24.3％)

1.76bn yen

0.29bn yen
3※1 EBITDA stands for earnings before depreciation and amortisation.
※2 Includes amortisation of goodwill (included in each business segment in the financial results & quarterly reports)

Note） Radish Boya figures are for 7
months, March to September,to reflect a change in fiscal year end.

Consolidated Results Overview

Both sales and operating profit, EBITDA set new record highs
Sales

31.72
（YoY

bn yen+67.6％）

Operating Profit

EBITDA

1.11

1.51

bn yen（YoY +369.5％）（YoY

bn yen+138.1％）
15.1

11.1

317.2

189.3

6.3

83.7

93.8

107.2
2.6

2.7

3.6
2.3

3.9

1.8

0.9

FY2015/03

FY2016/03

FY2017/3

FY2018/3

FY2019/03

FY2015/03

FY2016/03

FY2017/3

FY2018/3

FY2019/03

FY2015/03

FY2016/03

FY2017/3

FY2018/3

FY2019/03

2Q

2Q

2Q

2Q

2Q

2Q

2Q

2Q

2Q

2Q

2Q

2Q

2Q

2Q

2Q

4

Business segment Results Overview

Note） Radish Boya figures are for 7
months, March to September,to reflect a change in fiscal year end.

Sales

31.72
Other
Businessbn yenMarginal profit
margin10.6％

Segment costs

Total segment costs

RadishBoya

DWMK

Marginal profit
marginSegment costs

17.8％

Marginal profit
margin26.76bn yen

Segment costs

17.7％

Marginal profit

4.96
Oisix

Marginal profit
margin14.1％

Segment costs

bn yenCompanywide fixed costs,
goodwill

3.84bn yen
Operating Profit

1.11

bn yen5Overview of Business Segments
Business segment

Business

Business Unit

Oisix
DWMK

Radish Boya
Other Business

Overseas BusinessHong Kong
China(Shanghai)

Real Retail Business

Shop
Shop in Shop
Kindergarten Wholesale

Solution Business

Alliance
Novelties

Subsidiary

Tokushimaru

…

etc

6

Oisix KPIs
Number of subscribers: Thanks to steady growth driven mainly by measures mapped out
in Kit Oisix plans, we achieved our initial business performance plans by the end of 2Q.
ARPU: Increased slightly due to rising unit prices,despite a decreasein frequency as numbers of light users rose

Number of subscribers

ARPU

189,352

11,127yen（YoY +21.5％）（YoY +0.6％）

189,352
179,942
169,664
162,891

12,087

155,827

11,955

147,474

11,932
11,833

137,359

11,587

11,586130,673

11,602

11,562

124,283
118,124

11,127

11,057FY2017/3

FY2017/3

FY2017/3

FY2017/3

FY2018/3

FY2018/3

FY2018/3

FY2018/3

FY2019/3

FY2019/3

FY2017/3

FY2017/3

FY2017/3

FY2017/3

FY2018/3

FY2018/3

FY2018/3

FY2018/3

FY2019/3

FY2019/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

7

Oisix Topics
Cumulative shipments of Kit Oisix surpassed 28 million meals!
No. of kit course subscribers

Feature of Kit Oisix(Includes Oisix subscribers)

87,232

87,232（YoY +41.1％）

１
Delivers volumes/quantities of food

79,674

suitable for a given family size. Allows
71,124preparation of the main dish and side

66,324dish in 20 minutes.

61,831

2

55,489All menus contain five or more

50,010types of vegetables and reflect

47,39044,290consideration for well-balanced

37,827

nutrition.

3
Uses only safe, reliable ingredientsfrom farmers and manufacturers
under contract to us.
FY2017/3FY2017/3FY2017/3 FY2017/3FY2018/3FY2018/3 FY2018/3FY2018/3FY2019/3 FY2019/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

8

Oisix Topics
Proposing a diverse range of menus and implementing tie-ups
with various individuals and media
Raising awareness of Premium Jitan concept through increased media exposure“Kit Oisix even father can prepare,”supervised by Ken Watabe“Kit Oisix Halloween Dinner”“Final Curry,” a kit developed in collaboration
with culinary researcher Jinsuke Mizuno
to create the most delicious home-made curry dish“Iijima’s Pork Miso Soup,”a kit developed in collaboration
with the film “Midnight Diner”
9

DWMK KPI
Number of subscribers: Customer recruitment through Instagram and otherchannels has grown.
ARPU: Advances in bipolarization of purchasing behavior resulted in lower averagepurchasing frequency and decreased ARPU.

Number of subscribers

ARPU

48,611（YoY +12.3％）
45,09145,68046,43846,14547,710 48,611

45,30043,687

17,973yen

43,864（YoY -9.6％）

44,993
22,20921,30721,08820,054

19,884

19,875
19,24019,06618,991

17,973

FY2017/3

FY2017/3

FY2017/3

FY2017/3

FY2018/3

FY2018/3

FY2018/3

FY2018/3

FY2019/3

FY2019/3

FY2017/3

FY2017/3

FY2017/3

FY2017/3

FY2018/3

FY2018/3

FY2018/3

FY2018/3

FY2019/3

FY2019/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

10

DWMK Topics
Increasing the number of pages in the product catalog
Increasing revenue per purchase through the results of a catalog
with a product lineup for gala events.
Measures intended
to increase price per catalog order

Tsucione, the DWMK product catalog
40pages

Motto Tsucione,
a special pamphlet＋8pageExpanded the number of pages
in the product catalog
since July.
Added a removable pamphlet as
an insert to the product catalog,
Tsucione.
Each pamphlet features a special
theme, introducing a productlineup that adds value
to everyday meals, by focusing
on topics like direct shipmentfrom producers and careful
product selection,
for more appealing products
clearly differentiated fromordinary products and contributeto adding to revenue perpurchase.

11

Radish Boya KPI
Number of subscribers: Continued efforts from 2Q to focus on attracting subscribers
through highly effective channels
ARPU: Increased due to rising revenue per purchase, thanks to efforts promoting
seasonal ingredients and other measures

Number of subscribers

ARPU

80,031

16,394yen（YoY -9.0 ％）
91,526（YoY +3.1％）

92,19090,51087,98788,087

Note: Starting with this document, the ARPU for Radish Boya
was revised to use numerical figures consistent with thedefinitions used to calculate ARPU for the other two brands.
See p. 53 for details

87,951

89,22488,752

17,442
17,14984,26980,031

16,655
16,457

16,32016,322

16,394

16,18815,896
15,608FY2017/3

FY2017/3

FY2017/3

FY2017/3

FY2018/3

FY2018/3

FY2018/3

FY2018/3

FY2019/3

FY2019/3

FY2017/3

FY2017/3

FY2017/3

FY2017/3

FY2018/3

FY2018/3

FY2018/3

FY2018/3

FY2019/3

FY2019/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

12

Radish Boya Topics
Revenue per purchase increased due to a seasonal beverage promotion andtelephone follow-up on the revisions to delivery charges planned for
November, along with proposing products delivered regularly.
Beverage promotion
Promoted sales of beverages
for which unit prices can behigher in summer.
This contributed significantly
to revenue per purchase,
thanks to performance muchstronger than last year, due inpart to unseasonably warm
weather.

Telephone follow-up
to encourage subscribers
to agree to regular deliveries
In addition to providing information
on delivery charge revisions,

Proposing optimal shopping
Providing information on products eligible
for regular delivery◆Notifying subscribers of changes
in delivery charges◆Increasing revenue per purchase byincreasing contracts for regular
product delivery

13

Other Business：
Overseas BusinessHong Kong: Strengthening approach to Japanese customers residing in Hong Kong
China: Interviewing users with frequent purchases,
exporting Japanese products on a trial basis

Oisix Hong Kong

Oisix Shanghai

Local service launched in 2009.

Service launched in November 2017.

In 2Q, by strengthening

In 2Q, we interviewed

our approach to Japaneseusers with frequentcustomers residing

purchases about theirin Hong Kong,

needs to establish a stable

we expanded subscriber

business model. We also

rolls while maintaining

implemented trials inrevenue per purchase.

preparation for exporting
high-quality Japanese
products for sale in China.

14

Other Business：
Real Retail Business
Shop in Shop
While sales declined overall due to the withdrawal of unprofitableaccounts, a Shop in Shop under the Radish Boya brand was added.
Sales

0.38bn yen

4.0

3.8

No. of sites

136
2.0
1.5

FY2016/3

FY2017/3

FY2018/3

FY2019/03

2Q

2Q

2Q

2Q

15

Other Business：
Real Retail Business
Shop
Shop specializing in Kit Oisix sales opened in Shin-Koshigaya on August16Other Business：
Real Retail Business
Kindergarten Wholesale
Sales grew with steady growth in new customers.

3.6

Sales

0.36bn yen
No. of participatingkindergartens

314

1.9

0.5
0.3

FY2016/3

FY2017/3

FY2018/3

FY2019/03

2Q

2Q

2Q

2Q

17

Other Business：
Solution Business
Drawing on our expertise with subscription-based EC andhigh-quality produce and meal kits to expand alliances andprojects involving novelty items.
Alliances

Novelties

Steady progress on alliances with

Providing a jointly developed

Isetan Door, Vitality, and others

Kit Oisix product to buyers of
Rinnai gas appliances◆EC support for Isetan Door◆Partnership with Sumitomo Life’s
Vitality◆Collaboration with Rinnai’s DELICIA

18

Tokushimaru
Steady growth in transaction value, no. vehicles in operation, and prefectures served.
Number of vehicles in operation has surpassed 330, and number of subscribers ofaffiliated supermarkets has surpassed 100.

Transaction Value & Numberof Vehicles in Operation
Sales

1.89bn yen

18.9
17.8

Number of vehicles
in operation

336
10.2

15.2

Affiliated Supermarkets
Number of affiliatedsupermarkets

101

15.0

13.1
12.2

10.4

8.5
7.0

FY2017/3 FY2017/3 FY2017/3 FY2017/3 FY2018/3 FY2018/3 FY2018/3 FY2018/3 FY2019/3 FY2019/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

19

2. Results Forecast Revisions

20

Highlights
of Results Forecast RevisionsNote） Radish Boya figures are for 7
months, March to September,to reflect a change in fiscal year end.

Sales were revised up by 4.9% and operating profits by 50.0%.
Plans for the second half call for office integration and investing in thedevelopment of computer systems and other shared infrastructure as wellas in expenses associated with growth in the next year.
Initial forecast

Revised forecast

Change%Sales

61.00bn yen

64.00bn yen +30.0

Operating
Profit1.20bn yen

1.80bn yen +6.0

+50.0％EBITDA※1

2.00bn yen

2.60bn yen +6.0

+30.0％

0.90bn yen

1.50bn yen +6.0

+66.7％Net income
Attributable toowners of theparent ※2

bn yenbn yenbn yenbn yen+4.9％※2※2 Net income for this fiscal year reflects reductions in income tax due to losses carried over by Radish Boya.
※1

EBITDA stands for earnings before depreciation and amortization.

21

Note: Radish Boya’s results in
March 2018 were deducted fromthe revised forecast and the 2Q
results.

2Q Target Achievements

Even after deducting Radish Boya’s results in March 2018,
we made steady progress on both sales and operating profits.
Revised forecast

2Q Results

Achievement Rate

62.40bn yen 30.12bn yen

48.3％

Operating
Profit1.73bn yen

1.04bn yen

60.1％

EBITDA ※2.53bn yen

1.44bn yen

56.9％

1.43bn yen

0.82bn yen

57.3％

Sales

Net income
Attributable toowners of theparent※ EBITDA stands for earnings before depreciation and amortisation.

22

3. About Our Subscription Model

23

Farm for Tomorrow, Table for Tomorrow
We provide services that enable a better food life
for more people.
We realize a society where good farmers are
rewarded and proud.
We evolve continuously to 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.
24

Changing Societal
Consumption Patterns
As consumer goals change from ownership to use as needed,various businesses are setting their course to subscription models
Private vehicles

Servers

Streaming video

Car sharing

Cloud

On-demand video

25

Trends and Forecasts
in Global Streaming Video Market
Subscription sales in the streaming video market grew rapidly in FY2017.
This rapid growth is expected to continue.
48.37

Streaming video market trends
42.59

Per-use fees
Set fees

35.70

26.07

12.43
5.88 7.05

6.30

9.38

7.71
5.65

5.92

6.15

6.36
（bn $）

2014

2015

2016

2017

2018
(Forecasts)

2019(Forecasts)

2020(Forecasts)

Source: Ministry of Internal Affairs and Communications website,“Changes in and forecast for sales and numbers of contracts in the global streaming video market.”26

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

27

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

28

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

29

The KPIs that make up profit LTV
Since profit LTV is essential to the profitability of the subscription model,
we implement individual target management based on sets of KPIs withdifferent emphases on various KPIs.
Main KPIs
Original Sub-KPI image

Personnel
Sales
LTV

×
Frequency

×
Unit cost×
Marginal profitability

・Conversion ratio
・Turnover ratio・Cancellation ratio

etc.

・Receipt ratio
・High-frequency product purchases
・Behavior patterns of first-time
subscribers
etc.
・Sales in special categories
・Rate of use of personal setsetc.

・Cost ratio
・Logistics center expenses ratio
・Packing and shipping costs
etc.
30

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
decisions31EC expertise
Trouble-free operation of the EC sites of ISETAN DOOR
and DEAN & DELUCA supported by EC expertise gained with the subscription model
ISETAN DOOR

DEAN & DELUCA(Launched Aug. 2018)(Support began May 2015)

Steady growth after release

Continued YoY growth of 130%

Support for EC sites basedon Oisix’s subscription-based EC expertise32

Expansion our Subscription Model
Beyond sustained growth in existing businesses, we will consider various
measures to expand the scale of our overall business in ways that make themost of shared marketing functions and improve customer satisfaction. The
measures considered will include new businesses, alliances with other firms,
and capital investments.

Business
Food Delivery

Alliance
・ISETAN DOOR
・DEAN & DELUCA・Sumitomo Life
・New alliance etc.

New Business

setup

Capitalinvestment

MarketingFulfillment
33

33

4. Topics in Addressing Food-related Issues

34

Disaster Aid
All three brands have worked to provide aid
to victims of a succession of natural disasters, including torrential downpours in western Japan,
the Hokkaido Eastern Iburi Earthquake, and typhoons

Torrential downpoursin western Japan
We began delivering aid supplies inaffected areas the day after these
downpours truck.
We raised donations of 2,146,200
yen from subscribers.

Hokkaido Eastern
Iburi Earthquake
To aid areas affected by theearthquake that occurred on
September 6, all three brands begancollecting donations the week after
the earthquake. We are alsocollecting donations in connection
with shareholder benefits for thisfiscal year.

Typhoon damage
We seek to support producers who
suffered losses due to Typhoon Jebi,
which struck western Japan in
September, through sales of fruitthat remained on branches during
the storm.
The fruit issold as typhoon
persimmonsand typhoon
mandarins.

35

Emergency Alliances
SEAM participation in response to the torrential rainfalls in West Japan
made it possible to deliver the supplies needed.

36

TABLE FOR TWO
Oisix donates 3% of revenue to TFT from the sale of TFT-accredited
products purchased by our customers. The proceeds are used to fund meals
and the construction of dining facilities for children in developing countries.
TFT-accredited products sold3％
of revenue
donatedLunchesdelivered tochildren indeveloping
countries

To date, Oisix has delivered (as at end September 2018)

Approx. 4.35 million lunches※ lunch = ¥20

37

Tokyo Harvest
The sixth Tokyo Harvest was held this year, at Toranomon Hills.
A total of 22,000 people attended over the three days of this event,which featured various booths related to preparations for hosting the Olympics and Paralympics.

Tokyo Harvest, one of Japan’s top harvest
festivals, expressed gratitude and respect
for those who produce our food: farmers,
fisher people, and ranchers.
Tokyo Harvest is an enjoyable opportunity
to rediscover the culture, traditions, andhistory of each region and to community
information on delicious Japanese farefrom Tokyo to the nation and to the world.

38

M&As and Strategic Investment
Policies
We will move forward with business tie-ups and investments in FoodTech
domains, including subscription commerce, the sharing economy, kitchentech, AgriTech, and biotechnology, to further promote our solutions tosociety’s food-related challenges.
Enhancement of abilities tocreate and deliver solutions

Expanding solutions domains

Technological advances

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

Securing HR for systems
development and Web production

Operates website connecting
food producers and consumers.

Applying AI and IoT to increase
agricultural earnings

Made-to-order catering service
Expanding sales of domestic
products through exports
39

5. APPENDIX・DATA SHEET

40

Corporate Overview

Name：

Oisix ra daichi Inc.

Location：

Shinagawa-ku, Tokyo

Established：

June 2000

Representative： Kohey Takashima, Representative Director & CEO
Capital：1,282,961,000 yen

Employees：

680 (consolidated),
423 (nonconsolidated) as of the end of March 201841

Overview of Affiliates
Consolidated subsidiaries
Tokushimaru Inc

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

Fruits Basket

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

Furari Ltd.

Operates website connecting food producers and consumers.

Karabiner.Inc.

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

Crazy Kitchen

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.

Affiliates
Gochimaru Inc.:

Operates food EC site (Oisix × Ponta Point)

Nihon Agri Inc.:

Exports agricultural products.

42Trend in Number of Employees
680

421

163

FY2013/3

179

FY2014/3

192

FY2015/3

210

FY2016/3

FY2017/3(Consolidated)

FY2018/3（Consolidated）

43

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.

44

International BusinessHong Kong

Oisix Hong Kong
Producers

Regularsubscribers

Hong Kong

RegulardeliveryChinabuyingup

Yamato trucks

Oisix Shanghai
Same standardsof Oisix

Regularsubscribers

Producers

China

Regulardelivery

Our trucks
Yamato trucks

buyingup

45

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

46

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 management47

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.

48

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

49

DATA SHEET：Results
Results
FY2017/3（mn yen）

FY2018/3

FY2019/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

Sales

5,379

10,718

17,11323,016

9,602

18,93530,00739,987

16,85331,720Operating
Profit

169

270

625

752

141

237

692

891

610

1,115

EBITDA

225

391

810

996

320

635

1,282

1,670

808

1,513

Net income
Attributable toowners of theparent

119

187

429

515

72

93

336

237

537

893

50

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

1Q

FY2019/3

2Q

3Q

4Q

1Q

2Q

Sales

5,790

11,47018,481

24,7996,863

13,769Marginal profit

674

1,392

2,421

3,288

970

1,943

Sales

2,790

5,487

8,508

11,215

2,769

5,440

Marginal profit

539

1,078

1,650

2,095

479

960

Sales

-

-

-

-

5,811

9,926

Marginal profit

-

-

-

-

1,030

1,765

Sales

1,109

2,163

3,263

4,250

1,482

2,755

Marginal profit

185

384

571

760

154

290

1,257

2,853

3,951

5,253

2,024

3,844

Oisix

DWMK

Radish Boya

Other BusinessCompanywide fixed expenses

51

Overview of Main KPIs
ARPU distribution

ARPU
Average Revenue Per User(per month)＝

Price/purchase
Price paid at timeof purchase×

Purchasefrequency
Number of purchases
per month,
per subscriber

52

Data Sheet：Main KPIKPI trend
FY2017/3

ARPU
（yen）
Oisix

Price/
purchase（yen）
Purchase
Frequency(number)
ARPU
（yen）

DWMK

Price/
purchase（yen）
Purchase
Frequency(number)
ARPU
（yen）

Price/
Radish Boya purchase（yen）
Purchase
Frequency(number)

FY2018/3

FY2019/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

12,087

11,586

11,955

11,932

11,833

11,057

11,587

11,602

11,562

11,127

5,874

5,799

5,975

5,872

5,817

5,704

5,908

5,925

6,002

5,973

2.06

2.00

2.00

2.03

2.03

1.94

1.96

1.96

1.93

1.86

21,08820,05421,307

19,066

19,884

19,87522,20919,24018,991

17,973

7,605

7,524

7,965

7,525

7,589

7,700

8,336

7,726

7,731

7,786

2.77

2.67

2.67

2.53

2.60

2.58

2.67

2.49

2.46

2.31

16,655

16,32017,442

16,18816,457

15,89617,14915,60816,322

16,394

5,543

5,546

5,751

5,378

5,501

5,518

5,889

5,339

5,542

5,691

3.00

2.94

3.03

3.01

2.99

2.88

2.91

2.92

2.95

2.88

53

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.

The announcement of FY3/2019 3Q results is scheduled to begin at 3:00 pm on February 13, 2019.

54