FY3/2019 1Q Results
決算説明資料Explanatory
Materials

FY3/20191Q
Oisix ra daichi Inc
オイシックス・ラ・大地株式会社

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.

Contents

1 2
3 4

FY3/2019 1Q
Results
Overview

FY3/2019 1Q
Activities
Overview

FY3/2019 1Q
SocialActivities

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

Contents

1

FY3/2019
1Q
c
Results
Overview

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

1. FY3/2019 Results Overview
1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・Daichi wo Mamoru Kai(DWMK) KPI・Radish Boya KPI

4

1. FY3/2019 Results Overview
1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・Daichi wo Mamoru Kai(DWMK) KPI・Radish Boya KPI

5

FY3/2019 1Q Consolidated Results Overview
Consolidated Results Overview
Sales With the addition this quarter of Radish Boya’s results (4 months of business due tochange of FY-end) & better than anticipated subscriber acquisition at Oisix, sales grew
+76%YoY, a FY target achievement rate of 27.6%

Operating Profit
Improved gross margins at Radish Boya as well as the inclusion of 4-months of its businessresults led to a 333% increase in operating profits. FY target achievement rate was
50.8%. In 2Q, however, recognition of costs associated with the merger are anticipated.

EBITDA Grew +152％YoY
Units: ¥mn

FY3/2018
1Q Results

FY3/2019
1Q Results

FY3/2019
Plan

+/YoY

YoY %

Plan
Achievement
Rate

9,602

16,85361,0007,251

175.5%

27.6%

Operating Profit

141

610

1,200

469

431.2%

50.8%

EBITDA ※1

320

808

2,000

489

252.2%

40.4%

Net Income
attributable toowners of parent

72

537

900

465

738.7%

59.7%

EBITDA per share(¥) ※2

20.06

48.75

120.8428.69

243.0%

40.3%

Sales

※1 EBITDA stands for earnings before depreciation and amortisation.
※2 On April 1, 2018, the Company implemented a 2 for 1 stock split of common shares. For the previous
consolidated accounting year, said stock split is assumed to have occurred at the beginning of that accounting year 6
for the purposes of calculating comparable Net Income per Share and Diluted Net Income per Share figures

Consolidated Sales/EBITDA Trends※１
Sales

EBITDA / EBITDA per share※2

FY3/2019 1Q

YoY￥16.85 +75.5
bn

FY3/2019 1Q

YoY￥808 ＋152.2

%

mn

%

16.85
16

9
900

Unit: bn

14

8
800

12

7
700

9.60

10
8

808

Unit: mn

48.75

6
600

：EBITDA

5500：EBITDA per share

4
400
6
4

4.10

4.72

5.38

20.06

3
300

17.60

200
2

2

1
100

0

0

7.78

19.23

209

225

2016/032017/032018/03

2019/03

1Q

1Q

1Q

1Q

321

90

2015/03

2016/032017/032018/03

2019/03

2015/03

1Q

1Q

1Q

1Q

1Q

1Q

0

※1 Radish Boya figures are for 4 months, March to June, to reflect a change in fiscal year end.
7
※2 On April 1, 2018, the Company implemented a 2 for 1 stock split of common shares. For the previous
consolidated accounting year, said stock split is assumed to have occurred at the beginning of that accounting year
for the purposes of calculating comparable Net Income per Share and Diluted Net Income per Share figures

FY3/2019 1Q Operating Profit Trend & YoY Comparison
Operating profit increased by ¥469m YoY to ¥610m
Operating Profit Trend

Profit YoY Comparison

Unit: mn

Unit: mn

Summer decrease in appetite& long holidays meant lowest
profit for the year

Year-end sales meant
max. profit for the year

610

455
141
1Q

2Q

3Q
FY3/2018

Last year new subscriber
acquisition was curbed due toearnings structure reform, but
this year promotional costs are up
as we look to expand

610

＋296

199

96

＋1,033 ▲767

141

4Q

1Q
FY3/2019

With inclusion of 4 months’
Radish Boya profits,+¥469m YoY

Oisix
FY3/2018
Greater
1Q Operating
profits
profits▲60▲31

Other Radish Boya Increased FY3/2019
DWMK
Marginal business Marginal Profit fixed costs 1Q Operating
profits
profits Marginal (4 months)
profits

Margin improvement
through increased sales &higher customer spend,
greater profits from cost
controlProfits were downwith the addition ofRadish Boya’s
corporate wholesalearmRadish Boya’s
fixed costs
add-on etc

8

1. FY3/2019 Results Overview

1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・DWMK KPI・Radish Boya KPI

9

FY3/2019 Results Overview by Segment
Both sales & marginal profit were in line with plan at the 2 brands
Oisix and DWMK. Structural reform at Radish Boya translated
into an improved achievement rate at the profit level.
FY3/2019
Home Delivery Business
Oisix

Plan (FY)

Actual (1Q)

Achievement

Sales
Marginal profit

27,800
3,890
14.0%

6,863
970
14.1%

24.7%
24.9%
-

Sales
Marginal profit

11,550
2,030
17.6%

2,769
479
17.3%

24.0%
23.6%
-

Sales
Marginal profit

15,920
2,240
14.1%

5,811
1,030
17.7%

36.5%
46.0%
-

Sales
Marginal profit

5,730
840
14.7%

1,409
154
10.9%

24.6%
18.3%
-

Total sales
Marginal profit

61,000
9,000
14.8%
7,800
1200

16,853
2,633
15.6%
2,024
610

27.6%
29.3%
26.0%
50.9%

DWMK

Radish Boya※1

Other Business ※2

Company Total

Fixed costs ※3
Operating profit※1 4 months’ booked due to change of FY-end※2 Other Business: Solutions, media, shops, overseas, wholesale, etc.)※3 Includes amortisation of goodwill (included in each business segment in the kessan tanshin & quarterly reports)

10Oisix KPI Trends
No. Subscribers

ARPU※
YoY

FY3/2019 1Q

FY3/2019 1Q

179,942 +22.0%¥11,562

YoY

-2.3%

179,942
169,664

147,474¥12,087¥11,562¥11,833

118,124¥11,602

1Q

2Q

3Ｑ

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018

4Q

1Q

1Q
FY3/2019•Robust subscriber acquisition via LINE &affiliates•Kit Course-centric accelerated subscriber
growth2Q

3Ｑ

FY3/2017

4Q

1Q

2Q

3Q

4Q

FY3/2018

1Q
FY3/2019•Per customer spend increased, but anincrease in light users translated into alower frequency of purchase & a slightdecline in ARPU.

※ARPU：Average Revenue Per User (per month）
Regular subscriber frequency of purchase x amount spent/no. times

11

DWMK KPI Trends
No. Subscribers

ARPU※
YoY

FY3/2019 1Q+5.3%

47,71045,30045,091

FY3/2019 1Q

44,993¥18,991

YoY

-4.7%

47,710¥21,088¥19,844¥18,991¥19,240

1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018

4Q

1Q

1Q

FY3/2019

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

4Q

FY3/2018

1Q
FY3/2019•Improved conversion rate after initial trial set ・Per customer spend trended flat, but
an increase in light users translated into
•Successful relaunch of approaching pasta lower frequency of purchase and ausers
slight decline in ARPU.
※ARPU：Average Revenue Per User (per month）
Regular subscriber frequency of purchase x amount spent/no. times

12Radish Boya KPI Trends
No. Subscribers

ARPU※
YoY

FY3/2019 1Q-4.3%

84,26991,526

FY3/2019 1Q¥18,238

YoY

+0.8%

88,752

88,087

84,269¥18,468¥18,238¥18,088¥17,400

1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018

4Q

1Q

1Q

FY3/2019•No. subscribers fell as a result of
curbing promotion spend & reducing
inefficient channels

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

4Q

FY3/2018

1Q
FY3/2019• While per customer spend slightly fell,frequency of purchase rose withthe departure of low LTV users, translating
into an almost unchanged ARPU.
※ARPU：Average Revenue Per User (per month）
Regular subscriber frequency of purchase x amount spent/no. times

13

Contents2

FY3/2019
1Q
c
Activities
Overview

2. FY3/2019 Strategy & Action
1. 3 Brand Merger Synergies
2. Takuhai Home Delivery Business Growth Strategy(1) Oisix：Strengthen value of Premium Jitan meal kits(2) DWMK：Killer veggies, catalogue improvements(3) Radish Boya：Implement earnings structure reform

3. Non-takuhai Business Growth Strategy(1) Real retail business (Physical Stores, Wholesale)(2) Overseas business(3) Alliance business4. Tokushimaru

2. FY3/2019 Strategy & Action
1. 3 Brand Merger Synergies
2. Takuhai Home Delivery Business Growth Strategy(1) Oisix：Strengthen value of Premium Jitan meal kits(2) DWMK：Killer veggies, catalogue improvements(3) Radish Boya：Implement earnings structure reform

3. Non-takuhai Business Growth Strategy(1) Real retail business (Physical Stores, Wholesale)(2) Overseas business(3) Alliance business4. Tokushimaru

Food Delivery Business: Building the Platform for Growth
Going forward, aim is to create distinct platforms with uniquefunctions that allow for sharing of knowhow & infrastructure.
Promotes rationalization/social problem-solving.
SocialIssuesGrowing needfor timesaving
solutions

Growing
healthconcerns

Concern fora sustainable
society

Growing needfor timesaving
solutions

Growingdemand forsafe &
secure food

Meal Kit EC

Hong Kong

Increasing
number of
shopping
refugees(w/ DOCOMO)

China

MarketingPlatformSubscription
CRM
UI/UX
Web promotion, etc.

Fulfilment
Platform







Producers
3 temperature logistics centers
Food processing/manufacturing facilities
Delivery network/facilities
Quality control, etc.
17

Benefits of Platform Approach
Marketing Platform
Subscription/Promotion

 Development of subscription model to create a solid customer base & stable income streams
 Repeat marketing using access logs, purchase analysis & improved UI/UX, etc.
 Improved customer acquisition rates through use/promotion of web marketing
 Optimisation of customer acquisition methods using catalogues¥▲300m(FY3/2019 Plan)

Fulfilment Platform
Procurement/Production

 Stabilised supply through expanded supplier network Increased productivity through sharing operational knowhow of 3 temperature-zone food centers
 Merged processing & production facilities for increased productivity, lower costs& improved quality

Quality Control

 Unified product selection & quality checking functions to resolve differences in brand quality &reduce costs

Materials

 Unification of packaging materials to reduce costs & improve quality
 Cost savings via centralization of catalogue printing

Logistics

 Building of an effective delivery network using Yamato Transport, our own trucks & regional facilities
 Increased convenience for customers through delivery method diversification

Settlement

 Unification of vendors for volume discounts¥▲200m(FY3/2019 Plan)

Others SG&A expenses from office/branch mergers (rent, telecom, fixtures, etc.)
 Collaboration in customer support

18

Merger Synergy with Radish Boya
Dedicated “Radish Boya”area on Oisix EC site. Top billing given to
additive-free Private Brand (PB) seasonings. Sales over 150%
greater than plan.
Ra in O Initiative
Launched Radish Boya dedicated sales site on

Sales trend since launch

Oisix.com
In the 9 weeks since launch

40m

Sales： ¥（versus plan: +159％）

May

June

July

19

Event held to Commemorate Merger
In anticipation of our October 2018 management integration,
a commemorative event was held to foster a culture of mutual
respect where three brands exist under one roof.

20

2. FY3/2019 Strategy & Action
1. 3 Brand Merger Synergies
2. Takuhai Home Delivery Business Growth Strategy(1) Oisix：Strengthen value of Premium Jitan meal kits(2) DWMK：Killer veggies, catalogue improvements(3) Radish Boya：Implement earnings structure reform

3. Non-takuhai Business Growth Strategy(1) Real retail business (Physical Stores, Wholesale)(2) Overseas business(3) Alliance business4. Tokushimaru

(1) Oisix：Growing Need for Meal Kits
The number of course subscribers for “Kit Oisix”, which makecooking meals easier, continues to grow. Cumulative shipments
surpassed 11 million in 1Q.
Kit Oisix Characteristics

No. Kit Course Subscriber Trends

FY3/2019 1Q

79,672Just the right amount ofingredients for thefamily to your door. 1
main dish & 1 side dish,ready in 20 minutes.

Each recipe is designedwith nutritional balancein mind & contains 5 ormore veg.

Kits only use safe &sound ingredients fromcontracted farmers &manufacturers.

Cumulative Shipments

OVER

11 Million(24 million meals)(July 2013 – July 2018)

What is a meal kit?
A product comprising a pre-prepared set of all the ingredients(including sliced & diced veg) required to cook specific dishes

1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018

4Q

1Q
FY3/201922

(1) Oisix：Heightened Recognition through Collaboration
Accelerated product development under the supervision of celebrities
is designed to both expand the meal kit market & raise awareness of
Kit Oisix.

Ken Watabe, known as the gourmet celebrity in Japan, and Yuko Ogura,Japan’s most popular celebrity mum, are two examples of the celebs
under whose supervision Kit Oisix are being developed.
23

(1) Oisix：Strengthen Value of Premium Jitan
Developing a menu of recipes to meet a wide range of needs, basedon the Premium Jitan concept of “save time, put healthier meals on
the table”.
Easily get the essential fatty acids
that tend to be lacking”EPA&DHA oil! Chicken in tomato sauce”

Just a little extra effort for thatseasonal feel
“Rice cooked with whole ayu”

Have fun learning about food withyour kids“Hand-made butter chicken curry”

Extravagant luxury withminimum effort“Ippudo supervised soy milk
soup veggie ramen”

24

(2) DWMK：Killer Fruit and Veg
Providing a service that enables the constant & easy realization of a “proper
food life”. The introduction of vegetables & fruit developed in line with thekiller veggie concept is designed to whet subscribers’ appetite to buy.
Killer fruit & veg selection
In response to strong user needs for “good fruit and vegetables”, we have begun
to develop our own unique products.
Torori thin-skin aubergines

Uttori juicy plums

25

(2) DWMK：Change to Catalogue Concept
Design of product catalogue changed to be more target focused.
Chiming with the concept of a “Proper Food Life”, there is newcontent such as different serving suggestions.
BeforeAfter
New features include
serving suggestions &food fact columns

New calmer design is more in
keeping with our adult female
target demographic.
26

(3) Radish Boya：Service Improvements
Working to improve per customer profit structures throughinitiatives to both more efficiently attract new customers & increase
existing customers’ spend.
More efficiently attract new customers
Enhancing contracted product lineup to attract
new customers from websites. Increase new
subscriber spend & frequency of purchase.

New customer visits translate into
improved per customer spend

Revision to the sales flow of staff visiting
potential new customers resulted in significant
improvement in initial customer spend.
Initial spend of visited new subscribers
4 months’ improvement+42％¥3,899¥4,409¥4,045¥3,097

March
3月

April
4月

May
5月

June
6月

27

(3) Radish Boya: Profitability Improvements
Optimizing product CoGS & sales promotion costs andimplementing a bottom-up leaner business structure campaign
Improved earnings structure

Bottom-up leaner business campaign

Synergy effects from the 3 brand merger, forexample product cost optimization & careful
examination of sales promotion costs, haveresulted in significant improvements in main
cost items.

With an objective to maximize profits,
initiatives arising from a bottom-up approach tomore efficient working practises relating to sales,
costs & routines are being implemented laterally.
Taking this approach has resulted in significant
changes to profit structures.

◆Product CoGS
Improvement from mergerrelated cost optimisation:

Some of the initiatives (38 in total)

1.7%◆Sales promotion costs
Improvement from inefficient
subscriber acquisition channel
reduction:

2.6%◆Control of the effect of increased transportation costs
resulting from development of delivery routes◆Standardization of materials disposal criteria◆More efficient drafting of instruction manuals◆Sales staff training toraise per customer spend◆Utilization of existing infrastructure
Free space
availableTokyo

Use available
backhaul space tomove materials
Kanagawa

28

2. FY3/2019 Strategy & Action
1. 3 Brand Merger Synergies
2. Takuhai Home Delivery Business Growth Strategy(1) Oisix：Strengthen value of Premium Jitan meal kits(2) DWMK：Killer veggies, catalogue improvements(3) Radish Boya：Implement earnings structure reform

3. Non-takuhai Business Growth Strategy(1) Real retail business (Physical Stores, Wholesale)(2) Overseas business(3) Alliance business4. Tokushimaru

（1）Real Retail Business (Shop in Shop/Kindergarten Wholesale)
Expansion of Shop in Shop business with agreement on new sites
such as Naritaya. Kindergarten wholesale business is also growing
as more new kindergartens sign up.
Shop in Shop business

Kindergarten Wholesale Business

183
Sales Trends

Sales

¥183m

98

105

The kindergarten wholesale
business was launched in
FY2015. This quarter there
was a significant increase in
the number of participatingkindergartens in April, thefirst month of the newfinancial year.

Sales Trends

223

Sales

¥223m

69

56

No. of Sites

120

No. participatingkindergartens
2016
1Q

2017
1Q

2018
1Q

2019
1Q

290

11
2016年
1Q

18
2017
1Q

2018
1Q

※ 4 months of business due to change of FY-end

2019
1Q※

30

(2) Overseas Business: Hong Kong/China
Hong Kong : Same system architecture as Japan for improved usability
China: Enhancement of product quality via expansion of our
proprietary truck delivery area
Oisix Hong Kong Office

Oisix China Office

Local service launched in 2009, local corporate
entity established in 2015.
Employing the same system architecture as
Oisix in Japan this quarter has improved
usability & increased subscriber numbers.
In tandem, we also launched $HK settlement
operations.

Service launched in November 2017.
Acceleration of local Chinese procurement of
products that meet Oisix Japan’s safety
standards has translated into 180 items.
This quarter the level of product quality is toimprove through expansion of the area inwhich our trucks operate.

31

(3) Alliance Business：ISETAN DOORISETAN DOOR, an EC site operated with our support by Isetan
Mitsukoshi Holdings’, is open.
Details of Support

March
2018
Entry
into
alliance

ISETAN DOOR Operational Support
Marketing Platform• Marketing specific to regular home deliveries• Online promotions• Design of EC site user interface

Fulfilment Platform• Quality producer network• Three temperature zone logistics centers• Food product processing/manufacturing plants• Quality management function, etc.

A regular homedelivery food EC
site operated by
Isetan Mitsukoshi
Holdings
Designed tostrengthen pointsof contact withcustomers throughroll out of “Food x
Online”322. FY3/2019 Strategy & Action
1. 3 Brand Merger Synergies
2. Takuhai Home Delivery Business Growth Strategy(1) Oisix：Strengthen value of Premium Jitan meal kits(2) DWMK：Killer veggies, catalogue improvements(3) Radish Boya：Implement earnings structure reform

3. Non-takuhai Business Growth Strategy(1) Real retail business (Physical Stores, Wholesale)(2) Overseas business(3) Alliance business4. Tokushimaru

Tokushimaru : Expansion of Mobile Sales Infrastructure
for “Shopping Refugees”
The positive effect of management support & the bolstering of
personnel has resulted in robust growth of total transaction
value. There are more than 300 vehicles now in operation.
Transaction value &Expansion of Affiliated Supermarkets
No. vehicles in operation(As of 30 June) (As of 30 June)ththTransaction Value

No. Vehicles in Operation

No. Affiliated Supermarkets

96¥1,782m

314(YoY +45.7%)(YoY +42%)(YoY +26 supermarket operators)

Transaction Value
1,500

300

No. Vehicles in Operation

1,000

200

500

100

0

0
1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018

4Q

1Q

FY3/2019

34

Contents

3

FY3/2019 1Q
SocialActivities

Support in the wake of Western Japan Torrential Rain
To support recovery of disaster-struck areas, from the day after torrential
rains let up, we delivered relief supplies to Mihara City (Hiroshima Prefecture)& Kamijima Town (Ehime Prefecture). We also initiated donation reception
facilities across our 3 brands.
Details of Torrential Rain Relief
July 2018 Torrential Rain

Jul 8

Next day
Jul 9

Jul 10Jul 12

Jul 16①Delivered relief supplies Initiated donation ②Delivered relief supplies ③Delivered relief(Mihara, Hiroshima Pref.) reception on our site (Mihara & Kamijima) supplies (Kamijima)

Details of Relief Supplies① -Vegetable Juice ‘Vegeel(125mL)’：18,000 cans
-Black-sugared Banana Chips (132g)：600 bags
-Unsalted mixed nuts (120g)：1,000 bags
② -Tea (500mL)：1,200 bottles③ -Mineral water 2L：1,440 bottles, 350ml：6,720 bottles

Donation Reception
・Donations accepted across 3 brands
・Initiated ‘Eat and Send for Western Japan’ purchase-linked
donations36

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 theconstruction 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 June 2018)

APPROX.

4.35 MILLION LUNCHES※*Cumulative 2009 – FY3/18 1 lunch = ¥20

37

Hosted “A Million People Candle-night 2018”“Turn out the lights, spend a mellow evening” was the catchphrase
for 2018, the event’s 16 th year. 5,500 people attended.
What is A Million People Candlenight?

2018 Event• In collaboration with SSFF＆ASIA※ screened movies
with an environmental theme• In the DWMK kitchen, under the theme of foodloss, menus to use up veggies, skins & all, were
proposed.

38

An initiative started in 2003 by Daichi
wo Mamoru Kai which advocates weturn off the lights & spend two hours,
from 8pm to 10pm on the nights of thesummer and winter solstice, to freely
enjoy some down time by candlelight.
※SSFF＆ASIA : Short Shorts Film Festival & Asia 2018

Heading up Japan Wheelchair Rugby
CEO Takashima has been appointed Head of the Japan Wheelchair Rugby
Federation & plans to beef up the Federation’s organizational structure in
the run up to the 2020 Paralympics.
Background to appointment
We have signed up as an “Official Supplier” to the Japan
Wheelchair Rugby Federation. Leveraging the business &marketing acumen of our CEO Hohey Takashima tobeef up of the Federation’s organizational structure,
the aim is to achieve even greater things, not only at the2020 Paralympics, but also at other prior major events suchas the IWRF 2019 World Wheelchair Rugby Challenge (tobe held in conjunction with the Rugby World Cup) in Japan.

39Support for Working Women
We are promoting support for working women via initiatives suchas “meal kit development”, “launch of a site for mums” & “worklife
proposals”
Accelerated development of Kit Oisix
Helping working women who don’t have much time forcooking by developing meal kits from a mum’s perspective.

Launch of working
mums’ campaign site

have launched a
Various initiatives We
campaign site thatspecial priceto support working sells
goods & services
for busy mums,
womenand recruits
volunteer monitors

Support for a smooth return to work from leave
To enable a smooth return to work from maternity leave,
we hold a “Return to Work Ceremony”. We also run a“Return from Childcare Program” based on theexperience of mums who have been through the process.

40

Sustainable “Doyo no Ushinohi” (Dog days of Summer)
We are taking a joint three-brand approach to propose shared oralternative products to address continued eel shortages & keep alive thetradition of eating eel during the period following the summer solstice.
Ways of selling
Substitute ingredients
We propose alternative-to-eel
ingredients that are similar in
look, texture & stimulant effectWays of eatingWith eel resources drying up, we
propose new ways of eating eel,such as “sharing small amounts” &“appreciating the taste more”

A bridge to the next
generation
We have established a Sasaeel
Unagi Fund to keep alive thecultural tradition of eating eel
during the dog days of summer
for the next generation

Sasaeel Unagi Fund

Kabayaki-grilled sanma (pacific saury)

Kabayaki-grilled tofu

Chopped eel ‘histumabushi’Aiming to safeguard/bring back eel
resources, ¥50 of the purchase price of
certain products goes to the fund.
Proceeds are used to establish “stone
cages” for the release of eels & to provide
them with shelter.

“Yukimai” rice that goes well with eel
41

Contents

4
TOPICS

Subsidiarization of “CRAZY KITCHEN”
Crazy Kitchen, a company that is in the business of order-madecatering, will be made a subsidiary. We will be looking tostrengthen communication in the food domain.

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Partnership with Ibaraki Prefecture
We have entered into a partnership agreement with Ibaraki
Prefecture. We will be matching producers in Ibaraki andpromoting the branding & sale of their agricultural products.
Details of initiatives
・Matching of producers in Ibaraki
・Participation in study & exchange sessions hosted
by Oisix Ra Daichi
Going forward, looking into partnering to support theskills of farmers & improve logistics efficiency, etc.

Ibaraki farmers invited to one of ourstudy sessions

Initiatives going forward

Partnership signing ceremony(Left: Ibaraki Prefecture Governor Oikawa, Right: ORD CEO Takashima)

・August:Carry out farmer matching events for items thatare popular but sell out on Oisix
・October:
Ibaraki Prefecture to participate in the Tokyo
Harvest Festival

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Subsidiarization of “Karabiner Technology ”
Karabiner Technology made a subsidiary to secure near-shore systemdevelopers & Web designers, who are in extremely short supply
Business
Alliance(Apparel EC Consulting &System Development)• Development of new online
shopping business solutions, etc.

Make subsidiary(51% stake)• Secure near-shore system• developers & Web designers(EC Platform System Development)

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Partnership with Sumitomo Life’s “Vitality”
Entry into partnership with Sumitomo Life’s “Vitality” health-improving
insurance policy, offering up to a maximum of 25% discounts on
healthy food to “Vitality” policy holders
Details of PartnershipAs a benefit to “Vitality” policy holders◆ Approx. 750 items classed ashealthy food by Oisix
Safe and sound Oisix quality daily fooditems such as fruit & veg, chicken breasts,
low-fat milk and tofu.

Max. 25% discount
Sumitomo Life “Vitality”
Different from conventional life insurance
policies in that premiums change according
to health check ups & the appraisal ofcontinued health-improving activities.
Various benefits are provided to support
activities that improve the health ofsubscribers.

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Co-Development with a Food Tech Fund Partner
Co-development with “Food Tech” partner Routrek Networks of “ZeroAgri” special cultivation※ support functions to deliver smart farming※Special cultivation: Agriproduct cultivation in which the number of times
pesticides are applied and the volume of nitrogen used in chemicalfertilizers are both less than 50% those of normal local cultivation practices.

Details of Development

Use AI + IoT to develop functions to reduce theworkload in special cultivation, toward the “spread ofsafe & sound agri products” for which there is
growing demand“Zero Agri” AI-embedded irrigation & fertilization system
A system that automatically supplies the optimal amount of water andfertilizer in accordance with data from sunshine & soil environment sensors

Farmers take a holiday! Thanks to AI + IoT

What is Food Tech Fund?
The Food Tech Fund is Japan’s first strategic
investment arm that specializes in “food”.
More than simple investment, the fund offers
implementation support from a wide range offields utilizing ORD’s platform with the aim offacilitating the speedier implementation
and/or commercialisation of new start-up
businesses’ technologies & services.
◆Project No.1: Routrek Networks Inc

In accordance with crop growth

AI irrigation& fertilization
Invisible soil data becomes

All sorts of data via SNS

VisibleNotification

Platform development of asystem that employs AI & IoT to
improve agriproduct profits◆ Project No.2: Furarito Ltd.
Home cooked meal sharing
business that utilizes the freetime of housewives & others.

◆ Project No.3: Nihon Agri, Inc
Total coordination of agriproductexports from Japan.

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Bolstering of Corporate Governance Structure
We have strengthened our Corporate Governance Structure byincreasing the number of internal & external directors by one.
Directors(from 4 to 5)

Directors(from 8 to 10)
Two more directors tostrengthen corporate
governance

External Directors(from 4 to 5)

Kazuyoshi Fujita

Mitsuyo Hanada

Kohey Takashima

Keichi Ushida

Yusuke Tsutsumi

Hitoshi Tanaka
New

Hiroyuki Ozaki

Yuichiro Nakamura
New

Kohei Matsumoto

New

Wakako Sakurai

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Reference
Materials

(Ref.) Oisix Customer Spend/Frequency of Purchase
Customer spend

FY3/2019 1Q¥6,002Frequency of purchase

YoY

FY3/2019 1Q

+3.2%

YoY

1.93x

-4.9%

2.20

6,500

2.06x
2.03x

¥6,0022.00

6,000¥5,874

1.93x¥5,817

5,500

1.80
1Q

2Q

3Ｑ

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018

4Q

1Q

FY3/2019

1Q

2Q

3Ｑ

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018

4Q

1Q

FY3/2019

50

(Ref.) DWMK Customer Spend/Frequency of Purchase
Customer spend

FY3/2019 1Q¥7,731Frequency of purchase

YoY

FY3/2019 1Q

+1.9%

YoY

2.46x

-5.4%

3.00

8,500

2.80

2.77x

8,000

¥7,731

2.60x
2.60¥7,605¥7,589

2.46x

7,500
2.40

7,000

2.20
1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018

4Q

1Q

FY3/2019

1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018

4Q

1Q

FY3/2019

51

(Ref.) Radish Boya Customer Spend/Frequency of Purchase
Customer spend

Frequency of purchase

FY3/2019 1Q

YoY¥5,455

FY3/2019 1Q

-0.8%

YoY

3.34x

+1.7%

3.50

6,000

3.40

3.35x

3.34x

3.29x

5,500

¥5,455¥5,501¥5,505

3.30

3.20

3.10

3.00

5,000
1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018

4Q

1Q

FY3/2019

1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018

4Q

1Q

FY3/2019

52