2022/3 2Q Results
Explanatory Materials
Oisix ra daichi
2021.11.11

Table of Contents

1. Sustainable Retail1-1. Growth Strategy
1-2. Zero Food Waste
1-3. Carbon Neutral

2. 2022/3 1H Achievements
2-1. Consolidated Financial Results
2-2. Results on Business segment

3. ESG Topics■ APPENDIX・DATA SHEET
1

1. Sustainable Retail2マスター タイトルの書式設定

1-1. Growth Strategy

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.
4

Growth strategy

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

Sustainable Retail5Using business models
and technology

Using Business Models
Using Technology
Stable demand throughsubscription model✓ Utilizing food loss
in the field✓ Promoting
sustainable production

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

Eat

Produce
Crop condition
data for 4,000
houses nationwide.

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

Optimal supply/demandmatching using proprietaryalgorithms

CVC to invest in the future of foodPurchase data ofroughly 400,000
customers x 52
weeks.

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

Realization of zero food loss and carbon neutrality61-2. Zero Food Waste

7

Zero Food Waste-Supply chain
Our distribution food loss ratio is roughly 0.2% - by far the lowest within the food retailing industry.
Via further efforts, we aim to contribute to the further reduction of food loss not only at ORD , but
within the entire supply chain.

Produce

Sale

Eat

Promotion of sales of irregular andsubstandard products, and upcycling of
discarded parts

Using the SUBSCRIBE Model
Supply and demand data matching
between field and table

Offer "Kit Oisix", "Chanto Oisix" andother services for using up
ingredients

Reduction of food loss in the field *(1H of FY2021)

Food Loss in Distribution

Reduction of approximately

100 t(not including the use of offspecification products at Kit Oisix)

General retail
about

5-10％

Oisix ra daichi
about

0.2％

The amount of food wasted at home
has been reduced toabout 1/3

through the use of Kit Oisix.

Contributing to ORD food loss zero program
as well as to the program for food loss reductionin the entire supply chain.
*Food loss reduction refers to the weight of food sold/ reduction in food ingredients disposed of for items that were edible but were not consumed.
Sales weight of food loss from partner plants during production/processing (includes those from third-parties) and/or undistributed items owing to notmeeting shipping standards. Amount of food loss reduced by using the Kit Oisix meal kit. Derived by using 77g/meal of food loss reduction (based oninternal research, June 2019) and the cumulative number of kits sold.

8

Zero Food Waste

Produce-Reducing Food Loss in the Field

Sale

Eat

Kit Oisix proactively utilizes off-specification raw ingredients. Implemented new sales space focused on foodloss at the farm. By conducting promotions (e.g., providing product background and taste information) thatleverage the strength of e-commerce, we cultivate customer needs that contribute to society.

Food Loss in the Field
Uneven shapeout of specification size

Active use of normally scrapped/discarded raw ingredients.

▲Using Discarded Chives
Stems Bibimbap Kit▲Gapao rice kit using mackerel
scraps Gapao Rice Kit

good harvest

superficial blemishes

Sales space focused on food loss at thefarm (point of production).

▲Kale croquettes made fromsurplus kale due to declining
demand for restaurant food.

▲ Gyoza made from
Gyoza dumplings madefrom unripe cabbage

9Zero Food Waste

Produce- Upcycle

Sale

Eat

“Upcycle by Oisix” has been more popular than expected and has allowed us to secure both sales
growth and food loss reduction. We aim to further expand the market by increasing sales
channels to third-party customers such as retailers.
- Acceleration of Product Development
Release of 17 items, including PB products,
in about 4 months after launch▲Jam made frombanana peels

About 4 months after launch,

Sales of 30 million yen▲Stollen made from thepulp of plums used to makeplum wine-Expansion of Sales Channels
Expanding sales channels to promote thereduction of food loss in the field

Reduction of

about 6t of food loss
10

Zero Food Waste-Newly established Food Rescue Center

NEW TOPICS

Produce

Sale

Eat

To further mitigate food loss in the fields, we established the Oisix Food Rescue Center which isequipped with processing functions dedicated to food loss reduction. By purchasing entire crops –including off-specification items – we make unrelenting effort to realize food loss reduction.

Bulk purchase of crops

FieldsNEW

All crops from the field

Food Rescue Center

Regularvegetables

New processing center specializes in
reducing food loss
New Processing Center＋
Bumper crop,
uniformity
Stems, peels,leaves, etc.
Field waste

11

Zero Food Waste-Newly established Food Rescue Center

NEW TOPICS

Produce

Sale

Eat

With the aim of eliminating food loss both in the field and in distribution, via proprietary
technologies, we utilize normally discarded items for use as raw ingredients in Kit and/or Upcycle
products. We are also developing technologies to extend food expiry dates.

Food Rescue
Center1

Utilization of raw materials
and processed products2

Conversion to
upcycled products

Extending shelf life throughpackaging technology andtemperature zone control

Combination of heating and freezing

Texture control technology

Kit
Manufacturing
Center

Proactively
used as raw
materials for
Kit cut
vegetables
and processed
products

Extension of quality
retention period

Raw and cut
vegetables that areeasily damaged Cut
vegetables, etc.
Products that do
not last long

Normally
inedible parts
such as vines,
skin, and stems

Foods that canbe eaten but are
discarded in the
field

3

Accelerate
development ofupcycled products
and expand
manufacturing
capacity

By extending the quality
retention period further
contribute to food loss
reduction

12

Zero Food Waste

Produce-Supply and demand matching through the use of data

Sale

Eat

Our distribution level food loss ratio is roughly 0.2% (vs. 5~10% average for food retail). By
matching field and individual consumption data, food loss can be reduced and a stress-free
shopping environment can be achieved via improved personalization.
-Food Loss Comparison in Food Retailing(Distribution Process)- Using data to help the field and the table
Original algorithm matching

general retail store

5～10％

about

0.2％

Extremely low foodloss rate
Business Model

Supply and demandmatching based on
proprietary algorithms＋

Crop status datafrom 4,000 storesnationwide

Improving theaccuracy of
personalization
through the use of AI

Purchase data of about
400,000 customers x
52 weeks

13

Zero Food Waste-Service for using up food ingredients

Produce

Sale

Eat

By using "Kit Oisix,” "Chanto Oisix," and other services that exhaust food ingredients,
food loss at home is reduced to 1/3.
- Amount of food wasted per meal

- Service for using up food ingredients

General Dinner
A set of semi-processed ingredients

Food waste per
mealReducing foodloss at the dinner tableby about 1/3

recipes for one meal (main dish and side dishes)for three or five days.

141-3. Carbon Neutral

15

The entire supply chain
is carbon neutral
Reflecting our unique characteristics as manifested by "handling foods with low environmental impact" and"simple distribution channels from field to dinner table,” our business model results in CO2 emissions that isjust 50% of the Physical Retail Average even accounting for home delivery.

A business model boasting significantly
lower CO2 emissions than the Physical
Retail Average-CO2 emissions per sales(including all of Scope 1, 2, and 3)
Physical Retail Average*

Low pesticide use and additive-free arecharacteristics of our environmentally
Domestic products
friendly food products.
Our company’s
emissions areabout 50% lower
than those of othercompanies.

Simple distribution channels fromfarm fields to dining tables.

CO2 Emissions from
Organic Products
emission reduction
into the logic.

A storelessEC food market.

Day2
Day1

Day3

FY2019FY2020～*We calculated the average of five companies that disclose information on CO2emissions in Scope 1, 2, and 3. Sales of each company are calculated on aconsolidated basis for the relevant fiscal year (based on our research).

16

Carbon Neutral

Produce-Promoting sustainable agricultural production

Sale

Eat

We are advancing initiatives such as promotion of sale of pre-organic products and biochar
production experiments to reduce by one-half, greenhouse gas emissions stemming fromagricultural production.

- Commitment
We aim to halve greenhouse gas emission
from our production within 5 years.

Reduction

Support for production of
pre-organic agricultural
products.

Aabsorption

Reduction

Energyconservation
experiment infacility cultivation

Production
experiment using
biochar

VisualizationUnderstanding theenvironmental
impact Introductionof labeling17

Carbon Neutral-Partnerships with Food Tech Startups

NEW TOPICS

Produce

Sale

Eat

Investment and business alliance with two alternative protein startups in Japan and the U.S.
Aiming to create a platform for sustainable food sales in Japan via joint product development
among other things.

- Joint Product Development

Investment and business alliance

In collaboration with Green Culture, Inc.
Green Meat" made from Oisix original
ingredients Green Meat" using Oisix
original ingredients.

×
Development, manufacturing and sales of plant-based meat

Research on culture technology forcrustaceans such as lobsters and crabs

18

Carbon Neutral

Produce-Green Delivery

Sale

Eat

Regarding decarbonization of last mile logistics, we plan introduction in Jan 2022 of green energy
delivery vehicles for Radishbo-ya and Daichi on an experimental basis.

- Commitment
We aim to halve greenhouse gas emissions
stemming from our delivery operations.
within ５ years.

Started experiments to introduce green energy
delivery vehicles using biomass fuel, which isneutral in terms of CO2 emissions, in January
2022.

19

Carbon Neutral

Produce-Expanding the Sometimes Vegan Style

Sale

Eat

In order to further expand "Sometimes Vegan" in Japan and overseas markets, we plan to sell veganfrozen foods in major supermarkets and expand the "Ready to Eat" lineup in the U.S. We also plan
to start selling PB frozen foods through our own EC site and/or via third parties in Japan.

U.S.
- About Vegan and Sustainable
Veganism is a lifestyle that does not consume foodsof animal origin.
In terms of sustainability, the energy inefficiency ofanimal products and the GHGs emitted directlyfrom animals have become a problem.
" Sometimes Vegan " who enjoy veganism only a
few days a week are spreading in Japan andabroad.

- Expansion of external salesof vegan frozen products

Sold in about 7,000
stores in the U.S.

◆Expanding the global
plant-based food market*

Japan
-

$29.4

$161.9BillionBillion

2020

2030E

- Expansion of product lineups
for a variety of food scenes

Expansion of Oisix
Vegan Course
members*Bloomberg Intelligence, OECD FAO Agricultural Outlook 2021-2030,
GFI 2020 State of the Industry Report20

2. 1H Achievements

21

Exective Summary-2022/3 1H Achievements
Sales

Led by Oisix, sales saw solid growth increasing +18％◆◆

Domestic Delivery business（Three major brands）✓Subscribers ： Led by Oisix, there was steady growth in subscriptions through the 1H.
Subscribers rose by roughly 43,000 for the three main brands.
✓ARPU ：
Whilst there was an YoY decline against the strong one-off COVID driven
performance of last year, vs 2019, growth remained high at 10-18%.

Other Business✓Purple Carrot (U.S.), which saw a near doubling in business last year, saw a decline
in subscriptions in the 2Q owing to such factors as renewed economic activity.
The business has remained profitable however, and performance above expectations.
✓ Other businesses, led by the EC Support Business. expanded steadily.
EBITDAEBITDA continued to expand more than expected reflecting Oisix driven
sales/profit growth.
✓ EBITDA continued to expand more than expected reflecting Oisix driven sales/profit growth.

✓ However, sales fell YoY. Last year was an irregular year where sales grew despite
an inability to acquire new customers given tight logistics capacity at Oisix.
✓ 2Q profit fell YoY. On top of seasonal factors, new investments in such areas
as the new Oisix distribution center and purchase frequency enhancement measures
were made for future growth.
222022/3 Summary of 1H Results
Sales：Led by Oisix, sales saw solid growth increasing ＋18％

EBITDA ： Better than expected growth reflects sales/profit expansion at Oisix
as well as continued stellar performance at Purple Carrot.

Sales

56.16bn yen

EBITDA（ YoY ▲ 10%）

（ YoY + 18%）

Operating
Income3.34bn yen Net income（ YoY ▲16%）

4.18bn yen

Attributable toowners of theparent2.15bn yen（ YoY ▲12%）23

(Note) Calculation of ARPU assumption.
To eliminate the one-off boost effects of COVID-19 on
ARPU, we assume ARPU to be equal to FY3/20 or thelevel posted before COVID-19.

Consolidated Results Overview-SalesContinued high-level growth reflects Oisix led subscription growth and high ARPU.
Sales（bn yen）

56.16

CAGR

（ YoY +18%)

21.0%
about
41.0
32.55

2021/3 2021/3
1H
1H(actual value) (results)

Results

2020/3
1H

Results

Actual value

2019/3
1H *Actual value

31.72

47.56

about
52.0

2022/3 2022/3
1H
1H(actual value)（results）*For the purposes of like-for-like vs Target comparisons, one extra monthof Radish Boya data (March 2018) was deducted from FY 3/2019 data.

24

(Note) Calculation of ARPU assumption.
To eliminate the one-off boost effects of COVID-19 on
ARPU, we assume ARPU to be equal to FY3/20 or thelevel posted before COVID-19.

Consolidated Results Overview-Profits

Whilst down YoY, profits exceeded forecast reflecting Oisix led sales/profit expansion.

EBITDA

Operating Income（bn yen）（bn yen）

4.67
CAGR

40.4%

3.97

CAGR

42.7%

CAGR

34.2%
2.46

2.15
（ YoY▲12%)Results

2021/3
1H

Actual value

2020/3
1H

Results

2019/3
1H *0.9

Actual value

2022/3
1H

1.15

3.34
（ YoY▲16%)

about
2.9

about
2.6

Results

2021/3
1H

Actual value

Results

2019/3 2020/3
1H*
1H

Actual value

1.51 1.34（ YoY▲10%)

about
3.1

Net income（bn yen）

4.18
about
3.7

Attributable to owners of the parent

2022/3
1H

0.89

2019/3
1H *0.39

2020/31H

2021/31H

2022/3
1H*For the purposes of like-for-like vs Target comparisons, one extra monthof Radish Boya data (March 2018) was deducted from FY 3/2019 data.

25

YoY：Sales
On top of the additional Oisix led 43 thousand subscribers posted in 1H within domestic home delivery,
the effect of continued high ARPU (vs. pre-COVID-19) resulted in a revenue increase of 8.6bn yen.

- Sales（bn yen）
2 Sales increase

56.16:Purple Carrot

(A)
About
7.6

47.56

（B）
About
▲2.9

About
2.4

About
1.5

・(A) Increase in subscribers ：about7.6bn yen

・(B) Increase in ARPU

3
Sales increase:Other：about▲2.9bn yen

２ Sales increase of Purple Carrot：about1.5bn yen

1
Sales increase:
3 home delivery
business(A) subscribers(B)ARPU2021/3
1H

１ Sales increase of
3 home delivery business: about4.7bn yen

３ Sales increase of Other：about2.4bn yen
・EC support
・Kindergarten wholesale・Hong Kong/ Shanghai
・Consolidated subsidiaries(include new consolidation by "Toyoichi")2022/3
1H

26

YoY：EBITDA
EBITDA were above expectations. Whilst aggressive growth investments were made – newlarge-scale PR spending, transitioning to the new Oisix distribution center – subscriptions and
ARPU remained strong.

１ Profits increase of- EBITDA（bn yen）
（B）
About
（A） ▲0.7
About
1.5

4.67

３ Purple

4

Profits
Increase:Other

CarrotCo
nsolidatio
About
▲1.6

About
0.4

3 home delivery business：about0.8bn yen

About
0.3

About
▲0.4

4.18

・(A) Increase in subscribers ： about

1.5bn yen

： about

0.7bn yen・(B) Increase in ARPU

2

Increased investment in growth：about▲1.6bn yen
・(C) PR investment:about▲1.5bn yen

・(D) Increase in logistics costs for

２ growth investment(C) PR investment(D) Increase in new
distribution center costs1

new Oisix distribution center3

5 Fixed cost

Profit increase of Purple Carrot ：about0.4bn yen⇒Turn into surplus in 1 year after consolidation

increase

Profits increase:
3 home delivery business(A) Subscribers (B)ARPU

2021/3
1H:about▲0.1bn yen

2022/3
1H

4Profits increase of Other ：5Companywide fixed costs increase：about▲0.4bn yen

about0.３bn yen

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

27

Seasonal fluctuations inbusiness performance
Our business model is characterized by seasonal fluctuations to sales and profit margins. COVID-19
has tended to mask those fluctuations. In the current FY3/22, as the effect of COVID-19 subsides,
seasonal fluctuations are likely to be more pronounced.

- Seasonal changes in normal conditions

Sales*

profit ratio*

1Q(4-6)2Q(7-9)3Q(10-12)

4Q(1-3)slight increase

Decrease

Increaseslight decrease

Decrease in sales due tosummer vacation andObon vacations

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

Sales decrease due
to spring vacation
Slightly decrease

Increase in sales forMother's Day and otherevents Slight increaseflat
Spring PR costinvestment

aggravation improvement
Deterioration due todecrease in ARPU

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

flat
Spring season PR costinvestment (scale ofinvestment flexibly
adjusted depending on
business conditions)- Impact of COVIⅮ-19 Seasonal Variations
Due to the impact of the COVID-19, the range of seasonal variation such as the impact of summer
vacation is smaller than normal, but the seasonal variation is larger than the previous year because the
COVID is gradually settling down this year.
*Sales: Image of seasonal changes in sales assuming a constant number of members 28*Profit margin: Assumption that there are no irregular cost investments

EBITDA: Changes from 1Q to 2Q
In addition to the effect of seasonally lower profit margins, we invested actively in growth
initiatives such as the new Oisix distribution center and measures to improve purchasefrequency.
-EBITDA:
Changes from 1Q to 2Q（bn yen）

１

Profits increase of
3 home delivery business：about0.2bn yen

2

Increased investment in growth：about▲0.3bn yen

1 Profits increase of
3 home delivery
business

2.31

3

About
0.2

About
▲0.3
About
▲0.2

２

Increased
investment ingrowth4

Profits
decrease of
Purple Carrot

About
▲0.2

1.87

・Increase in one-time expenses for relocation of the new
Oisix distribution center
・Increase in expenses for measures to improve purchasing
frequency

3 Profits decrease of Purple Carrot：about▲0.2bn yen

Fixed Costs

・Decrease in profits due to a reactionary decline in the numberof members following the resumption of the economy after anirregular pace of growth・Increase in expenses due to the switch to materials thatmaintain quality during the summer
・Increase in manufacturing and development costs for new
products, etc.

4 Increase Fixed Costs：about▲0.2bn yen
2022/3Arp-Jun2022/3Jul-Sep

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

29

Business segment Results
Sales

Oisix

28.58 bn yen 4.04bn yen(YoY +24％)

Daichi

Segment profit(YoY ▲7％)6.62 bn yen

1.31 bn yen(YoY ▲7％)(YoY ▲4％)RadishBoya8.73 bn yen

1.14 bn yen(YoY ▲4％)(YoY ▲30%)

PurpleCarrot5.53 bn yen

0.81 bn yen(YoY +37％)(YoY +130%)(Results for
January to June)

Other
business

6.91 bn yen

0.86 bn yen(YoY +55％)(YoY +28％)

Overview
・Promotions are progressing better than expected.
New subscriptions increased by roughly
39,000 in the 1H.
・Reflecting promotions timed to public holidays
and continued demand for home delivery, ARPU has
remained high at roughly +18% vs pre-COVID levels.
・Advertisements highlighting seasonal vegetables
being one example, we continue development ofcustomer acquisition methods in line with thetarget customer.

・ARPU remained high and was up roughly +10%
vs pre-COVID levels.
・As demonstrated by the likes of the fuzuroi-radish
campaign, customer-focused advertising knowledge
is accumulating.
・ARPU remained high and was up roughly +10%
vs pre-COVID levels.
・Coming off of an irregular one-off increase,resumption in economic activity suggests a negative
repercussion phase in subscriptions. On the other
hand, the impact has been less severe than
expected and business remained profitable in 2Q.
・EC support services continued to see strong
performance.
・The SinS/Nursery School Wholesale business saw
sales expansion on steady growth in the number ofcustomers
・Overseas, the impact of COVID has subsided. We will
return to advancing our efforts to refine our services.

30

Business segment Results Overview
Sales

56.16
Other

bn yenMarginal profit

Segment costs

12.6％

PurpleCarrotMarginal profit

RadishBoya

Marginal profit

Daichi

Marginal profit

Total segment costs
Segment costs

14.7％

47.98bn yen

Segment costs

13.1％
Segment costs

19.9％

Total
Marginal profit

8.18
Segment costs

Oisix

Marginal profit

14.2％

bn yenCompanywide fixed costs,
Goodwill etc

4.84bn yen
Operating Income

3.34

bn yen31

Future Outlook
Sales：By adjusting to lifestyle changes post COVID-19, we aim to secure a healthy increase in subscribers. Although ARPU is
expected to see gradual decline, we aim to maintain purchasing frequency at a high level even after COVID-19.
Costs：we anticipate gradual reduction to CoGS via such initiatives as transitioning to in-house processing. New PR investments
for customer acquisitions will be implemented to the maximum within the appropriate CPA range. With startup of operations at
Oisix’s new distribution center, one-off additional logistical costs are expected in the 2H. With full integration of distribution,
however, we anticipate gradual cost reductions from next fiscal year.
2H 2022/3

Subscribers

Expansion

2023/3

Outlook

Expansion

Respond to changes in customers' lifestyles, which will continue
after Corona, and steadily expand by acquiring members
mainly in the spring, which is an opportune time as before.

Sales

In the 1H, the decline was less than initially expected, but we expect a gradual decline in
the 2H due to changes in lifestyles following the lifting of the emergency declaration. In
the second half, we expect a gradual decline.On the other hand, in the next fiscal year, we
aim to maintain the level of sales at a higher level than the previous year throughmeasures such as strengthening value propositions.In the next fiscal year, however, we
will aim to maintain sales at a level higher than that of the previous fiscal year throughmeasures such as strengthening our value proposition.Translated with
www.DeepL.com/Translator (free version)

Decrease

Retain ～Increase

CoGs

Improve

Improve

Reduced product and manufacturing costs by promoting
in-house production of processing processes.

PR

Increaseincrease

Implemented to the maximum within the appropriate CPA
range.

Improve

With commencement of operations at the new Oisix refrigeration
center in August, additional expenses of roughly ¥0.8bn (including
roughly ¥0.6bn in depreciation and land rent) will be incurred in
FY3/22. Next year, with elimination of one-off expenses andconsolidation of logistics, a gradual decline in expenses is expected.

Improve

With expanding sales, the ratio of fixed SG&A tosales declined.

ARPU

Costs

Logistics

Other SG&A

Temporalyincrease
Improve32

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 Overseas Business
Purple Carrot(U.S.)
Hong Kong, Shanghai④ Other Business33

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Overseas Business

Subscribers: Increased by 39,000 in the 1H reflecting the use of influencers and localized TV
Other Business
commercials. This is a +27% increase relative to 1H last year when subscriptions
grew with resumption of customer acquisition activities following shipping capacity issues.
ARPU ：Fell compared to the COVID-19 induced one-off increase of last year. It remained, however,at high levels that exceeded our expectations.

No. of subscribers*1

ARPU*2

12,564

347,772（ YoY+ 27％）

347,772

（ YoY

yen

▲3％ , vs 2020/3 +18％）
2022/3

333,8502021/3

13,822308,899
285,168
274,929

12,891

252,303239,837
230,393
226,187
221,6122020/3
12,986

12,564
11,095

13,106

13,042

11,745
11,37910,6342020/32020/32020/32020/32021/32021/32021/32021/32022/32022/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

2Q

3Q

4Q

34

*1:Implemented withdrawal procedures for customers who place orders infrequently (impact of decrease in 2Q: approx. 2,000 customers)*2:ARPU=Average Monthly Revenue Per User

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Overseas Business

The number of Kit Oisix course members increased by 28,000 in the 1H.
Beyond the continued needs of increased home dining lifestyle changes,
we look to meet increasingly diversified dining needs via breakfast/lunch menu propositions.

Other BusinessNo. of Kit Oisix course subscribers*(Includes Oisix subscribers)

Mealtime

209,964（ YoY-Speedy expansion of value-added areas

+34％）

Break
Fast

Lunch

209,964

198,821

181,930
163,496
156,416

Value provided HealthConscious

140,934
130,165
124,753 128,320
119,458

Food
Education©Disney✓ Constant growth of new household food needs✓ Via product development and manufacturing at
2020/32020/32020/32020/32021/32021/32021/32021/32022/32022/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

our own factory facilities, we aim to realize
speedy and diverse product development.

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

35

Oisix Topics

NEW TOPICS

Domestic Delivery business（Three major brands）
Domestic Delivery business（Other）-Start considering collaboration
with AKACHAN HONPO CO., ltd.

Overseas BusinessStarted considering collaboration with AKACHAN HONPO, which mainly targets householdswith children. Aiming to grow the business to a scale of 10 billion yen by solving issues
in the area of food for childcare through joint product development, etc.

Other Business

Oisix with AKACHAN HONPO✓ Solving food-related problems so that life with babies
and children can be filled with smiles✓ We plan to open a special course in Oisix next spring.

１

Services specialized for families raising children
Suggesting popular Akachan Honpo products, distributing coupons, etc.
We will provide comprehensive support for the food and lifestyle of families
raising children by offering popular products from Akachan Honpo anddistributing coupons in conjunction with Oisix shopping. Comprehensive
support for the food and lifestyle of families raising children

2
Acquiring Members for the Oisix with
Akachanhonpo Course

3

Use Akachan Honpo stores and apps to promote
the new course, which will open next spring.

Joint product development
Jointly develop original products in the areas of baby food, snacks,
meal kits, etc. for families raising children aged 0-3.

✓ Sales and service ofmaternity and baby goods✓ High name recognition
among families with babies✓ 121 physical stores*
nationwide, reachingapprox 3 million people.

*As is Oct,2022

36

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）-Progress of Logistics Strategy

Overseas Business

New ORD Ebina Station started test operation.
Step-by-step transition to centralized logistics
to double refrigerated shipping capacity compared to March 2021

■Enhancement of refrigeration equipment

Other Business

Refrigerate(New ORD Ebina Station）

Current
state・Completion ceremony held on Aug. 5th・Scheduled to start operation in October.
Preparation is going well

Expected
effect・Doubled refriggerate capacity compared to Mar. 2021
・Improved distribution efficiency by unifying
the new ORD Ebina station

Initialinvestment

About 4bn yen

Features・All electrical power consumed is procured fromrenewable energy sources.
・BCP (Business Continuity Plan) facilities in theevent of natural disaster.

37

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）-Progress of Logistics Strategy

製造

Overseas BusinessTo achieve further business growth, we will invest in logistics to expand capacity
Other Businessand improve logistics efficiency. Following the shift of the refrigeration baseto the New ORD Ebina Station, we plans to expand its refrigeration facilities in the autumn of 2023
Aug.2021

Oct.2021

2023 Autumn

Close in stages.

Satellite
Center＋Function transfer to processing
and manufacturing facilities

Current
Ebina Station

Refrigerate

Logistics functions
will be centralized
at New Ebina
Completion of
construction

New
Ebina Station

Apr.2022

Food Rescue Center
Kit manufacturing center, etc.

*ref.P12

CAPEX

About4bn yen

Test runTransfercompleted

Logistics cost is expected to improveby 1pt in stages (compared to current Ebina Station)

Increase in costs for transition

About0.8bn yen

Temporary increase in logistics
costs：0.2~0.3bn yen

Depreciation(Rents, logistics equipment and systems)：0.9～1.0bn yen／annual
CAPEX

FrozenAtsugi
Station

About4bn yen

Startof operation

38

Domestic Delivery business（Three major brands）

Daichi KPIDomestic Delivery business（Other）

Overseas Business

Subscribers：Slight increase as we continue to experiment with customer acquisition strategiesaligned with the target customer.
ARPU ：Remaining at levels exceeding initial expectations reflecting strengthened services
for the senior market that has allowed maintenance of high unit prices.

No. of subscribers

ARPU*

45,394（YoY

23,251+1％）
44,878 44,998
43,941

38,51737,532 37,121

Other Business

45,30745,39445,196（ YoY

yen▲4％ 、vs 2020/3 +10％）
2022/3

27,1172021/32020/324,12837,12723,02524,35623,52023,251
22,391

20,821

2020/32020/32020/32020/32021/32021/32021/32021/32022/32022/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

21,159

2Q

3Q* ARPU=Average Revenue Per User

21,604

4Q

39

Domestic Delivery business（Three major brands）

Radish Boya KPI

Domestic Delivery business（Other）

Overseas Business

Subscribers：Continued to see a net increase in the 1H reflecting good signs from customer
acquisition methods aligned with customer needs. “Fuzoroi Radish” is one example.
ARPU ：Although there was a slight decrease compared to the previous year,
unit prices in particular remained at a high level and remained higher than expected.

No. of subscribers

ARPU*

66,464（YoY

Other Business

19,748

+8％）

（ YoY

yen

▲5％ 、vs 2020/3 +10％）
2022/3

66,46461,00959,40058,52865,32062,751
62,51561,822 61,518

2021/323,1892020/356,93520,18818,202

2020/32020/32020/32020/32021/32021/32021/32021/32022/32022/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

20,88421,00019,74819,65920,25918,621
17,926

2Q

3Q* ARPU=Average Revenue Per User

4Q

40

Domestic Delivery business（Three major brands）

Daichi/Radish Boya Topics

Domestic Delivery business（Other）

Overseas Business

Daichi：Newly established sales floor featuring products that can be easily combinedwith vegetables to encourage a sense of easy health
Radish Boya："Fuzoroi Radish" contributed to sales of 300 million yen
and a reduction in food loss of approximately 90 tons*.

Other Business✓ Launched a new sales space dedicated to
products that allow for easy preparation ofhealthy meals.

✓ “Fuzoroi Radish," which specializes in the saleof non-standard agricultural and marine
products, continues to be popular.

✓ Promoting health awareness via proposition ofeasily prepared vegetables and fruit dishes.

✓ We are actively developing convenient processedfood products. This year we expect sales of ¥0.3bn
and a 90t contribution to food loss reduction.

*Food loss reduction refers to the weight of food sold/ reduction in food ingredients disposed of for items that were edible but were not consumed.
Sales weight of food loss from partner plants during production/processing (includes those from third-parties) and/or undistributed items owing to notmeeting shipping standards. Amount of food loss reduced by using the Kit Oisix meal kit. Derived by using 77g/meal of food loss reduction (based oninternal research, June 2019) and the cumulative number of kits sold.

41

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 Overseas Business
Purple Carrot(U.S.)
Hong Kong, Shanghai④ Other Business
42

Domestic Delivery business（Three major brands）

EC Support

Domestic Delivery business（Other）

Overseas BusinessContinuing from the previous fiscal year, both subscriptions and ARPU have been steadily
increasing. Via product planning and propositions aligned with individual customer needs,
we have been able to maintain unit basket prices at levels exceeding those prior to COVID.

Other Business

ISETAN DOOR

d-meal kit

Support for Isetan Mitsukoshi's EC businessCommissioned from operation and management of EC
sites to distribution and delivery.

Started in July 2019 in collaboration with NTT
Docomo. Offer regular delivery services, mainly
meal kit for NTT Docomo’s customers.

1H, both sales and the number of✔ In
subscribers has grown steadily, partly due tothe influence of COVID-19.
of unbundled gift sets being one example,✔ Saleimplementing events that leverage the strengthof department stores.

✔ In 1H, both sales and the number ofsubscribers has grown steadily, partly due tothe influence of COVID-19.

have developed a new original d-meal kit.
✔ We
Targeted at the very high need for shortening
cooking processes.

43

Domestic Delivery business（Three major brands）

Subsidiary

Tokushimaru

Domestic Delivery business（Other）

May.2016~

Overseas Business

Due to the continuous rise in demand for mobile sales, the total amount of distribution
Other Businessmaintained a high growth rate of +40% YoY.
The establishment of the SV system has strengthened cooperative relationships with partner supermarkets,and the number of units in operation has been steadily increasing.

Impact scale-Development Scale
2022/3 1H value of circulation

10.80

bn yen（YoY +40%）

Number of vehicles
in operation

884

10.80
7.72

✓ Partnerships with 142 supermarkets,with growth in the number of units
in operation in 42 prefectures nationwide✓ Ito-Yokado Co., Ltd. made a significant
contribution to the number of units inoperation by strengthening advertising for
Tokushimaru.

884

4.98
3.67
2.53
268

614
440

336

2018/3

2019/32020/32021/32022/3

1H
上期

1H
上期

1H
上期

1H
上期

上期
1H

44

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 Overseas Business
Purple Carrot(U.S.)
Hong Kong, Shanghai④ Other Business45

※Purple Carrot shows the businesssituation from Jan. to Jun.

Subsidiary

Purple Carrot＜U.S.＞

May, 2019~

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

Overseas Business
Other BusinessA home delivery business focusing on 100% vegan meal kits, which is being developedin the US. Although the number of members began to decline due to the impact of the economic resumption,
the impact was slower than expected and progress was better than expected.

Quarterly results（$mn）
Sales

Sales
Operating Income

$24mn

Sales

$23mn
Returned to
profitability-Business Overview
Home delivery service offering meal kitswith only 100% vegan foodconsolidated✓ Weekly home delivery to 48 states in thecontinental U.S. subscription model✓ Veganism is a lifestyle in which people do not
2020/3 2020/3 2020/3 2020/3 2021/3 2021/3 2021/3 2021/3 2022/3 2022/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

consume foods of animal origin.
Veganism is a lifestyle that does not consume
food of animal origin.
In recent years, the style has spread to enjoy
only a few days a week.

46

Purple Carrot＜U.S.＞

Domestic Delivery business（Three major brands）

Subsidiary

Domestic Delivery business（Other）

May, 2019~

Overseas BusinessWe look to create opportunities allowing for more people to readily adopt vegan food.
Means to accomplish this include store sales and expansion of Ready-to-Eat scenarios.
We look to utilize our knowledge of home delivery and expand the range of value provided.

-Sales of frozen foods at retail stores-Expansion of product lineup”Ready to Eat”

✓ Purple carrot products are sold at major retail✓stores such as Whole Foods Markets, thelargest organic retailer in the U.S.

Other Business

Expanding the lineup of products that areeasier to prepare than meal kits. These
include microwavable staple foods and snacks
that can be eaten as is for breakfast/snacks.

Growing recognition as a vegan meal kit player with expanding sales channels
and a broadening product range.
47

Domestic Delivery business（Three major brands）

Hong Kong/Shanghai

Domestic Delivery business（Other）

Overseas Business

Hoang Kong：The negative repercussion effect in subscriptions following COVID appears
Other Businessto be bottoming out. To help strengthen brand recognition, collaborative projects
with popular local entities such as Tsukada Farm are being implemented.
Shang hai：Restrictions on travel to Japan have been eased. Local surveys have been conducted and via furthering ofunderstanding of daily food needs, we look to accelerate product development and cultivationof customer acquisition channels.

Hong Kong

Shanghai

Launched the service in 2009.
Cross-border delivery of Japanese products

Business experiment started in 2017. Deliver productsthat meet Oisix product standards by local procurement✓ After an increase in the number of members
due to COVID, there was a reactionary decline,
but the decline is bottoming out.

✓ Travel restrictions due to COVID impact
eased Detailed field survey to begin✓ Expand brand recognition throughcollaborations with popular local companies
such as Tsukada Farm and MUJI stores.

✓ Promote understanding of local dietary habits
and environment, and proceed with localized Kit
Oisix production and development. In parallel, we
are also developing channels for acquisition (ABC
Cooking Studio, etc.).

48

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 Overseas Business
Purple Carrot(U.S.)

Hong Kong, Shanghai④ Other Business49

Domestic Delivery business（Three major brands）

Shop in Shop

Domestic Delivery business（Other）

Rapid expansion in the number of stores with which we do business, with a total increaseof 53 stores in the first half of the year, mainly due to the model of introducing meal kits
to stores. We aim to further expand our business by creating models suitable for those areas
where meal kit penetration has not progressed.

Impact scale
FY2022/3 1H Sales

0.46

bn yenOverseas Business
Other Business-Expansion through introductionof model stores

No. of shops

237
0.46

0.37

0.38

0.40

237

136

145

✓ Via the horizontal deployment of model store
sales methodology, the number of transacting
stores has been growing nicely.

150✓ Advancing development of a new model to allow for
speedy introduction in larger geographical markets.

2019/32020/32021/32022/3

上期
1H

上期
1H

上期
1H

上期
1H

50

Domestic Delivery business（Three major brands）

Nursery School Wholesale

Domestic Delivery business（Other）（suku-suku Oisix）

Overseas Business

Strengthen nutrition education opportunities for nursery schools and actively implement
information disclosure. Promote nutrition education through eventsand expand Oisix recognition among parents of child-rearing age.

Impact scale
No. of trading nursery school

2022/3 1H Sales

0.58

bn yen624

Other Business-Providing information
to the child-rearing generation
through nutrition education

0.58
0.50
0.41*

0.36

314

2019/3
1H
上期

624
367

2020/31H
上期

412

2021/3
1H
上期

2022/3
1H
上期▲An initiative to get children interested in vegetables they eat byhaving them name them.

✓ We continue to organize nutrition education
events which are in high demand from nurseryschools and parents. We offer those facilities
supplying food ingredients with tools andopportunities.
✓ By strengthening the dissemination of event
information, we expand brand recognition among
the child-rearing generation*In the 2021/3 period, the nursery school was closed
one after another due to COVID-19, resulting in an irregular decrease in sales.

51

New PR support service forother companies: "Space AD”

NEW TOPICS

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

Overseas Business

Launched "Space AD", an offline promotion support service specializing
Other Businessin subscriptions. Providing the know-how built up
through our own offline promotions, we aim to turn this into a 5 bn yen business in three years.

-Strengths of our offline PR-Examples of Support✓ Thorough management of acquisition costs
and customer LTV✓ Experience in offline customer
acquisition at Oisix✓ Experience in holding eventsin a variety of event spaces atapprox 2,200 facilities

Features of "Space AD”① Supports efficient offline advertisingby visualizing sales efficiency based on factual data

✓ We have provided support to several clientcompanies, including Nestle.

② Provision of customer service staff specializingin the promotion of subscribed services✓ Customer service staff introduce the appealof services face-to-face, and some companies
acquire more than 10,000 customers per year.

③ Propose event spaces that meet your needs basedon area characteristics uniquely identified
from customer attributes and human flow.

52

Domestic Delivery business（Three major brands）

Subsidiary

ToyoichiDomestic Delivery business（Other）

Mar, 2021~

Overseas Business
Other Business
Jointly developing raw materials for meal kits with Toyoichi which was consolidated
into Oisix in March 2021. Strengthened product development based on customer needsin the three home delivery businesses, selling 31 new products in the first six months after consolidation

Development of Kit Oisix ingredients

RequestCooperation andprocurementwith ports-Business Overview✓ Developed exclusive ingredients for Kit Oisixby combining Toyoichi's information on ports
and Oisix's information on popular products.
✓ In addition to promoting the strengtheningof marine products in the home delivery business
Gradual increase in transaction volume as a new
Toyoichi business

Wholesale of marine products, mainly forrestaurants-Strengths✓ Unique procurement network from both "market"
and "direct production✓ Purchase from the customer's point of view by
utilizing the mother company of restaurants

53

DEAN＆DELUCA

Domestic Delivery business（Three major brands）

AffiliatedDomestic Delivery business（Other）

Feb 2019

Overseas Business

Affiliated company Welcome (DEAN&DELUCA, 20% owned) continues
to be affected by COVID's request for shorter business hours.
Exhibiting at events across Japan was strong as new demand.

Other Business-Performance overview✓ COVID continues to have an impact on the reductionof human flow and shortening of business hours✓ Increase in requests for participationin department store events
・・Exhibited in 10 cities,
about double the number of theprevious year
・・We aim to build on rising
DEAN&DELUCA driven customer
traffic by implementing productdevelopment of highly popular
local specialty products.

・・Lifestyle business throughretail and restaurant businesses◆Main Brand： DEAN＆DELUCA,GEORGE’S
etc,-Outlook✓ Although uncertainties about the impact of
COVID-19 will continue, continuous
improvement in business performance is
expected.
✓ Inclusive of likely employment adjustment
subsidies, we believe the possibility of alarge non-operating loss is low.

54

3. ESG Topics

55

WeSupport Family
Borrowing from our WeSupport Medical platform – a food support platform for medical
professionals, we initiated “WeSupport Family” which is a project to address child poverty
and food loss.

WeSupport Medical

WeSupport Family

Launched in the wake of COVID,
WeSupport Medical is a food support
platform for medical professionals.
127 supported support for 700,000 people
and more than 700 million yen

A food support platform for poor households withchildren, mainly single parents.
By utilizing the surplus stock of supporting
companies, we can also contribute to solving the
problem of food loss.

Messages from the medical institutions
we support
Thank you very much for all the support you have extended us.
Thanks to you, we have been able to maintain the health andmorale of our medical staff.
As for future initiatives, it is truly wonderful that you aresupporting single-parent households that have been hit especiallyhard by COVID.

56

Tokyo Harvest“Tokyo Harvest," an event to showcase the wonders of food producers, was held online.
Under the slogan "#Start not throwing away," the event called for participation in food loss
reduction activities from a variety of perspectives including those of producers and consumers.

Producer

Craft gin
Craft gin saving the food andbeverage industry. Production of
spirits via distillation of beersuffering from inventory hangovervis-à-vis COVID.

Consumer

Whole food recipes
Introduction of turnip andcarrot leave recipes that can bepreserved.

Tokyo Harvest
An event held for the ninth time this year to communicate the excellence of foodproducers such as farmers, fishermen, and livestock breeders both in Japan andoverseas, and to convey feelings of gratitude and respect in a tangible form.

57

Supporting AthletesContinuing to implement "food" support to help athletes competing on the world stage.
We also provide minor sports marketing know-how. Additionally, we created a sports support
project within the company to encourage proactive participation by employees.

Support for wheelchair rugby
Federation Director involved in administration
including that of dissemination and education.
Also involved in providing food support attraining camps and tournaments.

Food support for athletes
Provide food support
for our vegetables and juices.

(C)Megumi Masuda/World Wheelchair Rugby✓ Won a bronze medal
at the Tokyo Paralympics!

✓ One of our support athletes, wrestler
Ms. Mukaida, has won a gold medal
at the Tokyo Olympics!

58

APPENDIX・DATA SHEET

59

Corporate Overview

Name：

Oisix ra daichi Inc.

Location：

Shinagawa-ku, Tokyo

Established：

June 2000

Representative： Kohey Takashima, Representative Director & CEO
Capital：3,993 million yen

Employees：

915 (consolidated), as of the end of March 2021

60

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 No.1
investment limited partnership

Investment business for food-related startup companies

Future Food Fund Inc.

Investment business for food-related startup companies

Toyosu gyosho sanchoku ichiba(Toyoichi)

Wholesale sales of marine products mainly for the foodservice industry

Main Affiliates
Nihon Agri Inc.

Exports agricultural products.

DEAN & DELUCA

Lifestyle business through retail and restaurant businesses
61Growth Trajectory
The Company has been built and rapidly grown on Oisix with mergers with Daichi wo
Mamorukai and Radish Boya. Overseas operations has been steadily expanding with amerger with a U.S. company, etc.
May 2019(Billion yen)Three Limes, Inc.
(also known as Purple Carrot), a U.S.
company, becomes a subsidiary of theCompany

October 2017

March 2013

Daichi wo Mamorukai merges
with the Company

The Company lists on
TSE Mothers

100.0

October 2018
The Company merges
with Radish Boya

August 2013

February 2019

The Company forms a business and capitalalliance with DEAN & DELUCA Japan (current
Welcome Co., Ltd.)The operator of DEAN & DELUCA
JAPAN becomes an affiliatedcompany of the Company

62.5

May 2016

Sales

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

*

40.0

EBITDA

14.6
0.9
2013/30.9
2014/30.8
2015/3

3.1 *

23.0

20.2

18.1

15.9

8.9

71.0

1.0

2016/31.0

2017/3

3.5

1.7

2018/3

2019/32020/32021/3

EBITDA＝Operating Income ＋Depreciation and Amortization＋Amortization of Goodwill＊ Due to a change in the consolidated fiscal year, FY2019/3 includes one extra
month (4-months in 1Q resulting in 13-months total). For the purposes of like-forlike YoY comparisons, one month of Radish Boya data (March) was deducted.

62

Trend in No. of Employees
915

Ratio of female employees- Total860- Full-time

735
65%

680

47%

421

163

179

2013/3

2014/3

192

2015/3210

2016/32017/3

2018/3

2019/32020/32021/363

Directors Profile
The Board of Directors, consisting of four outside directors with variety of experienceand knowledge, actively discuss sustainable growth of the company in the rapidchanging business environment.
■Inside Directors

Chairman
Yoshikazu Fujita

President and CEO
Kohey Takashima

Director
Yusuke Tsutsumi

Director
Hiroyuki Ozaki

Director
Kouhei Matsumoto

Appointed 2017

Appointed 2000

Appointed 2000

Appointed 2010

Appointed 2018

Director of Fruit Basket Co., Ltd,
President and CEO of
Sougounousha Yamagatamura
Corp.

Representative Director of
Gochimaru Co., Ltd., Chief
Director of Eat, and Energize theEast, Director of Oisix Hong Kong
Co.,Ltd

Director and Executive Officer ofOisix Inc., General Manager of
Solution Business Division

Director and Executive Officerof Oisix Inc., General Manager of
Human Resources Planning
Divisionand Physical Store Division

Director and Executive Officer ofOisix Inc., General Manager ofCorporate Planning Division

Director
Junko Watabe

Director
Wakako Sakurai■Outside Directors

Director
Mitsuyo Hanada

Director
Hitoshi Tanaka

Appointed 2008

Appointed 2015

Appointed 2019

Appointed 2018

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

President and Representative
Director of JINS Inc., President
and Representative Director of
Brand New Day Co., Ltd.,
President and Representative
Director of JINS NORMA Co.

General Manager of CRM
Promotion Office ofRecruit Holdings Co., Ltd.

Department Manager of Life
Support Business Promotion
Department of NTT docomo Inc.

Director
Misato Kowaki
Appointed 2021
Sabae City Advisor, Female
Advancement Promotion.
AdvisorWeb media "MOTHERS
editorial department" established64

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

Effects of concentrationof logistics centers
We operate our own logistics centers, where logistics functions such as
inspection, storage, sorting, and packing of our products areconcentrated. For the most part, products under the Oisix brand areshipped to customers through our logistics center located in the city of
Ebina, Kanagawa Prefecture. Those under the DWMK brand are shipped
through a center located in the city of Narashino, Chiba Prefecture. If anatural disaster, fire, or other cause were render either or both logistics
centers unable to operate, potential consequences include inventory
losses, shipping delay, and temporary suspension of services, which inturn would affect Group businesses and business results.

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

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

65

Our Subscription Model
Expanding our business areas to include alliances and marketing support for othercompanies based on subscription model strengths in our three home 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

66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.
Two-worker householdswith small children

Households who want toenjoy cooking

Senior householdwith two people

Meals that can be boasted
without taking time

Self realization
through Cooking

Easy feeling of health

Producers

67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

68Subscription Network
Reducing risks and securing stable transactions through a subscription network
based on 4,000 producers nationwide and procurement under transaction 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
decisions69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

4 placein Kanagawa

4 placesin Hokkaido,
Tokyo, Kanagawa,
Osaka.

1 placein Chiba

Yamato trucks
approximately 99％

Our trucks
approximately 95％（area around
Logistics bases）

Our trucks
approximately 80％（area aroundmetropolitan area）
70

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

E-commerce Marketing

Logistics andDistribution

product development

Operation and management of
e-commerce sites focusing on foodProviding assets forfood delivery

Development and provision of
products that meet client needs

71

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

Revenue Model
Tokushimaru
Headquarters
Contractual fees
Royalties

Brands, expertise,
information provision

Regional supermarkets
Bases for supply of products

overview

Operating a mobile supermarket for seniors

aim

Provide value to customers who cannot beapproached through EC✓ Solving the Social Problem of "Shopping Refugees"
Who Cannot Go Out to the Neighborhood
Supermarket✓ Strong network of customers with weekly
face-to-face sales.

13％
Products

Product gross profits
30％
17％

Sales partners

In-person
sales

Owner-operators＋5 yen＋5 yenCustomers+10 yen rule72

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 Q3* Hexa Research『Global Meal kit Delivery Service Market Size And Forecast,/ByType (Fresh Food, Process Food) And Trend Analysis, 2015 - 2025』73

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

supermarket-Image of affiliated supermarkets

products

overviewaim

Wholesale of the Company's products toaffiliated supermarkets
Expand awareness to customers who
cannot be reached online✓ By selling our products in real supermarkets, we will
expand our recognition to the segment that wecannot reach through online advertising.

✓ Our products are expected to attract customers to
our partner stores.

74

Nursery School Wholesale（suku-suku Oisix）
Provides a unique system for ordering food for school lunches based on a menu.
It supports the operation of nursery school facilities in terms of food service and food education.

Nursery Schoolmenu～shippingmenu

Procurement
packagingoverviewaimshipping-Image of nursery school

menu selection

Menu suggestions
products and food education tools

Support for nursery school facility management
for food service and food education
Fostering food awareness at an early age
Expanding awareness among parents✓ The workload of nutritionists and nursery school
teachers is reduced because menus can beordered in bulk.
✓ Confronting children's food problems. And
to raise awareness of our company among parents.
75

Future Food Fund (subsidiary)
Utilizing our experience at the time of our founding, we will build an ecosystem of food tech thatprovides a wide range of support by making maximum use of the platforms of operating companies
that participate as LPs, not just investment activities.
Business
cycle

Businessidea

Financing

Product /serviceconstruction

Business growth/
EXIT

By comprehensively following the business growth of startups,
the speed of business growth will be significantly accelerated.
Utilization of various LP assets
and know-how

Collaboration and support withproven American VCs and incubators

Service experiment utilizing
startup specialty EC sales floor◆Example
Sales

Import /Logistics

Infrastructure76

DATA SHEET：Results
Results
2020/32021/32022/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

16,26532,552

52,42571,04023,132

47,567

Operating
Profit

543

900

1,597

2,467

2,076

EBITDA

755

1,348

2,381

3,595

Net income
Attributable toowners of theparent

270

390

695

790

（mn yen）

Sales

4Q

1Q

2Q

74,790 100,061

27,911

56,167

3,976

6,131

7,465

1,950

3,347

2,419

4,679

7,198

8,902

2,316

4,188

1,184

2,452

3,900

5,031

1,293

2,156

77

DATA SHEET：Business Segment Result
Business Segment Result
2020/3

Daichi

Radish Boya

Purple Carrot

Other
Business*

2022/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

Sales

8,308

16,524

26,52235,82911,26523,04737,03649,86314,14528,580Marginal
profit

933

1,868

3,261

4,801

2,367

4,335

7,012

8,984

2,057

4,045

Sales

2,587

5,137

7,936

10,541

3,636

7,094

10,761

13,978

3,314

6,628

Marginal
profit

457

885

1,397

1,889

724

1,368

2,160

2,751

663

1,319

Sales

3,770

7,459

11,41014,980

4,721

9,083

13,653

17,704

4,331

8,732

Marginal
profit

688

1,273

2,001

2,667

899

1,626

2,449

3,023

584

1,143

Sales

-

-

-

-

-

-

-

-

2,842

5,536

Marginal
profit

-

-

-

-

-

-

-

-

549

811

Sales

1,663

3,529

6,383

9,497

3,601

8,522

13,60018,922

3,373

6,911

Marginal
profit

256

557

656

846

391

1,038

1,599

2,320

427

869

1,792

3,683

5,719

7,736

2,305

4,391

7,089

9,655

2,329

4,842

（mn yen）

Oisix

2021/3Companywide fixed costs,
Goodwill etc*From 2022/3, Purple carrot will be disclosed independently from Other business.

78

Data Sheet：Main KPIKPI trend
2020/3Oisix

Daichi

RadishBoya2021/32022/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

Subscribers(number)

221,612226,187

230,393239,837

252,303

274,929

285,168

308,899

333,850

347,772

ARPU
（yen）

11,095

10,634

11,37911,745

13,822

12,986

13,106

13,042

12,891

12,564

Price/
purchase
（yen）

5,884

5,840

6,055

6,166

6,748

6,201

6,315

6,215

6,098

6,057

Purchase
Frequency(number)

1.89

1.82

1.88

1.90

2.05

2.09

2.08

2.10

2.11

2.07

Subscribers(number)

38,51737,532

37,121

37,12743,94144,87844,99845,30745,19645,394

ARPU（yen）

20,821

21,15922,391

21,604

27,117

24,12824,35623,52023,02523,251Price/
purchase
（yen）

8,195

8,292

8,732

8,508

9,234

8,610

9,000

8,729

8,425

8,557

Purchase
Frequency(number)

2.54

2.55

2.56

2.54

2.94

2.80

2.71

2.69

2.73

2.72

Subscribers(number)

61,00959,40058,52856,93562,51561,822

61,51862,751

65,32066,464

ARPU（yen）

18,202

17,926

19,65918,621

23,18920,88421,00020,25920,18819,748

Price/
purchase
（yen）

6,055

6,060

6,398

6,206

7,028

6,373

6,696

6,441

6,402

6,407

Purchase
Frequency(number)

3.01

2.96

3.07

3.00

3.30

3.28

3.14

3.15

3.15

3.08

79

(Supplemental Information)
Impact of changes
to revenue recognition standards.

◆Main change schemes

Sales and profits will not be significantly affected bychanges to revenue recognition standards.
Although, the CoGS ratio shows represented ashaving worsened.

１ Domestic Delivery✓ Some sales promotion expenses,
such as point discounts, are offset against sales◆Changes CoGs
revisedprevious

51.0%

50.7%

50.7%

50.6%

50.8%

50.9%

49.9%
49.6%

21/3 1Q

21/3 2Q

49.5%

21/3 3Q

CoGs

SG&A

Segmental
Profit2 EC Support✓ Sales and expenses that were shown
on a net basis are now shown separately✓ Expenses are accounted for in CoGS.

49.4%

21/3 4Q

Sales

22/3 1Q

22/3 2Q

Sales

CoGs

SG&A

Segmental
Profit80

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.

81