2022/3 Q3 Results
Explanatory Materials
Oisix ra daichi
2022.2.10

Table１. Trouble at Oisix New Ebina Station distribution centerand Future Recovery
1-1. Background and Overview
1-2. Financial Impact
1-3. Recovery Plan
1-4. Measures in Q4

２．Revision of Forecast
３．2022/3 Q3 Results
3-1. Consolidated Financial Results
3-2. Results on Business Segment

4. ESG Topics■ APPENDIX・DATA SHEET

1

マスター タイトルの書式設定- Iｍpact on Q4

1. Trouble at Oisix New Ebina Station distribution centerand Future Recovery
1-1. Background and Overview
1-2. Financial Impact
1-3. Recovery Plan
1-4. Measures in Q4

1-1. Background and Overview

1. Background and Overview-① PurposeWith the aim of further enhancing the distribution capability and profitability of "Oisix” which is
growing at roughly 20% annually, we decided to relocate to New Ebina Station to1) expand shipping capacity, and 2) reduce costs via company-wide shipping optimization
BeforeProducer

Distribution

After
Customer

Producer

Current Ebina Station

Distribution

Customer

NEW Ebina Station
NEW

Satellite Bases

Capacity
・ Floor Space ：5 times
・ Capacity：2 times

Cost Reduction

Inefficient delivery fromprocurement to distribution centerto customer

・ Shipping efficiency is enhanced
via new systems for the distribution center itself.
・ Through closure of satellite facilities and consolidation,
logistical costs are reduced.

4

1. Background and Overview-② Schedule AdvancementRelocation of the distribution center was initially planned around 2024.
In order to meet the increased demand for home delivery, which has been raised by COVID-19,
we have moved forward by about two years.
2020

2021

2022

2023

2024

initially planned for around 2024
Initial plan

In order to meet the increased demand for home delivery
we have moved forward by about two years

current Ebina Station

New Ebina Station

Forward planningaccording to
COVID-195

1. Background and Overview-③ Schedule RelocationThe New Ebina Station was completed in Aug. 2021. Shipment transfers and test operations began
in Oct., and on Jan. 16 th~17 th 2022, all shipment functions were shifted to New Ebina Station in a
massive relocation operation.
Aug.2021

Oct.2021

Jan. 16th~17th 2022
（Large relocation
operation）

Apr.2022

Function transfer

Current
Ebina Station

Food Rescue Center
Kit manufacturing center, etc.

Gradualshipment transfer

Shift to New Ebina Station
in a Large relocation operation

New
Ebina Station

Completion of
construction

Test run

Large Relocation
Operation

Shipping integration
to New Ebina Station

6

1. Background and Overview-④ Causes of trouble"Merchandise Receipt," the first step in logistics, experienced problems owing to, among other things, delays inincoming merchandise. Subsequent processes stagnated resulting in an inability to make deliveries.
Whilst an attempt was made to ship those items for which inventory levels were known, system parameters
preventing picking lines from operating without sufficient inventories meant lines stopped.
New Ebina Station

Current Ebina Station
moving products

producers
Merchandise Receipt

Warehousing/inventory control

shelving

picking（packing in boxes）

shipping

delivery of products

Trouble 1
 Delays in scheduled deliveries occurred. Due to thedelay, the receiving operation was not functioning andthere was great confusion.
 Post-shipment processes(inventory control, shelving, etc.) are not possible.

Trouble 2
 The logistics system is designed to precisely control the operation of thesystem when the shelves are not full of products.
 After that, the line was forcibly put into operation and product shipment
resumed.

backgroundbackgroundDue to delays in product delivery,
the initial operation did notproceed as expected.

Because it was a high-precision logistics system It
was difficult to cope with irregular situations.
7

1. Background and Overview-⑤

Current StatusShipping and delivery has been completed without delay since January 25.
Customer support was also delayed for about two weeks after the trouble,
but is now back to normal.

- Shipping and Delivery status
・ Since Jan. 25th, shipment/delivery operations
have been operating without delay.

- Customer support Status
・ Delays in customer support that continued forroughly 2-weeks have been resolved.

Both phone and email inquiries
have been Response rate andreply speed restored to normal

8

1-2. Financial Impact

2. Financial impact-① SummaryThe impact of problems is largely limited to (1) Trouble Itself ,(2) Recovery Period, and (3) Promotion Suspension.
The impact of this trouble on 2022/3 performance will be about 1.5 bn yen in sales and about 1.5-2.0 bn yen in profit.

Details・Customer service related*
・・ Lost opportunity for cancelled deliveries
・・ Discount point cost as apology
・・ Increase in labor cost for trouble shooting, etc.

1

Sales

Profit

About

About

▲0.5bn yen

yen

Trouble Itself

About▲0.2-▲0.3bn yen

・Product disposal*

2

Recovery
Period3

Promotion
Suspension▲0.6-▲0.8bn

・ Increased costs due to additional
CX improvements
・ Decrease in ARPU
・・due to continued restrictions on the numberof product items, etc.

・Loss of sales and profit opportunities
due to stagnant sbuscribers caused bysuspension of promotions

2022/3
Total Impact

About

About

▲0.3bn yen▲0.5-▲0.7bn yen

About

About

▲0.7bn yen▲0.2bn yen

Sales

ProfitAbout▲1.5bn yen

About▲1.5-▲2.0bn yen*The actual loss for auditing purposes in this trouble is about 0.36 bn yen.

10

2. Financial impact-② Trouble itself: Customer Impact-

1
2

Trouble Itself
Recovery Period

3 Promotion suspension

A total of about 110,000 subscribers were affected by this trouble and about 7,000 inquiries are generated
from subscribers.
Loss of about 0.5 bn yen in sales and 0.9 bn yen in profit due to lost opportunities caused by the failure todeliver, and apology points to subscribers.

- Affected subscribers

about 110,000

・ Product cancellation

about 80,000

・ delay in delivery

about 10,000

・ Product shortage

about 20,000- Related to trouble
Subscriber Inquiries*

Business Impact

・ Lost opportunity for cancelled deliveries：about 7,000

・ Discount point cost as apology
・ Increase in labor cost for trouble shooting, etc.

- Subscriber's Voice
Scolding
・I order a few days in advance based on the availability of my refrigerator,
so I don't want to be contacted on the day of delivery.

Sales ：about▲0.5bn yen
Profits：about▲0.6-▲0.8bn yen

・I was informed that the items scheduled for delivery tomorrow are almost
out of stock. If I don't get the meal kit, I'll be out of a week's worth ofmenus. I'm wondering if I should stop using it in the future.
Encouragement
・I received an email regarding the trouble. To be honest, it is very
troubling to not receive food, but please take it easy and get some rest.

*Number of unique telephone and e-mail inquiries during the first week after trouble occurred (1/19-1/25)

11

1
2

2. Financial impact-③ Trouble itself: Merchandise disposal effects-

Trouble Itself
Recovery Period

3 Promotion suspension

We incurred about 0.2-0.3 bn in product disposal costs.
The food waste rate, which is normally about 0.2-0.3%, worsened to about 2% in a single month of Jan.
Reduction of actual waste through donations through “WeSupport Family” and conversion of processed products
to raw materials- Increase in the rate of food waste in distribution- Activities to reduce the actual amount of waste
usual

In Trouble（Jan, 2022）

about0.2～0.3％

about2％Business Impact

Activities to reduce the actual amount of waste
as much as possible.

・Donating to food pantries
・Used as raw material
for processed products
・ Donating to food pantries

・ Product disposal cost・ Used as raw material
for processed products

Profits：about▲0.2-▲0.3bn yen▲Donations to single-parent families▲Cabbage to be discarded isquickly processed into dumplings122. Financial impact

1
2-④ Recovery period-

Trouble Itself
Recovery Period

3 Promotion suspension

Regarding recovery period, from February onward, the top priority will be to improve the shopping
experience for customers and stabilize the service level even at a cost.
From March onward, move to the phase of cost reduction in stages.
-

To implement shopping experience improvement as a priority
Increase in logistics costs, etc.

・ To reduce product shortages
Increase in waste due to increasedorder quantities

・ Increase in logistics costs, labor costs,
and disposal due to irregular operations

・ Continuous logistics
station Strengthen
manpower-

Business Impact

Due to the limitation of the numberof product items soldDecrease in unit purchase priceLong tail products
Restricted to focus on

・ Decrease in unit purchase price due torestrictions on the number of items sold

Sales ：about▲0.3bn yen

Profits：about▲0.5-▲0.7bn yen

132. Financial impact

1
2-⑤ Promotion suspension -Trouble Itself
Recovery Period

3 Promotion suspension

Regarding the number of subscribers, the churn rate of existing subcribers temporarily increased but was
lower than expected, and is also returning to normal levels at an early stage.
On the other hand, due to the impact of the temporary suspension of promotions, the acquisition of new
subscribers actually decreased significantly for one month-Decrease in new subscribers due to suspension of promotions
・ The impact of the temporary suspension of promotions was significant.
As a result, the actual number of new acquisitions
for the month decreased significantly.

Promotion
Large Impact

low Impact

Charn

When trouble occurs

From Feb.

Stop new acquisition(About a week)

Even after the resumption,
the number of acquisitions
declined due to factors such asa decrease in the frequency ofmachine learning in PR.

Business Impact
・ Opportunity loss due to suspensionof promotion

Sales ：about▲0.7bn yen
Profits：about▲0.2bn yen

The week when trouble
Then almost to normal level.
Occurs increased toIt's settling down in stages.
1.3 times the normal rate14

1-3. Future Recovery Plan

3. Future Recovery Plan-① Schedule OverviewWith regard to Recovery Plan, the establishment of a shipment system without delays has already been
completed in January.
The recovery will be achieved in three major steps: (1) Expansion of the quantity, (2)Improving the quality,and (3) Productivity Improvement.
FY2021
Details

1 Expansion of the

Quantity

Trouble Feb.
Occurrence

・ Productivity improvement
at New Ebina Station
・ Increase in the number of shipments
at satellite and refrigeration stations⇒To increase shipping capacity in February
Top priority will be given to

2 Improving the
Quality3

Productivity
Improvement

・ Gradual expansion of the numberof items for sale, which had been limited.
・ Resumption of alliance advertisingthat had been suspended⇒By the end of this fiscal year, the qualityof orders and deliveries will beback to the level before the trouble.
・ Reduction of logistics cost from theoriginally planned New Ebina Station
Reduction in logistics costs
・ The Food Rescue Center is one monthbehind schedule (from May).
Implemented the transfer from thecurrent Ebina Station⇒By the first half of the next fiscal year, we
will recover to the originally planned level ofcost reductionMar.

FY2022Apr.

Jul.

By the end of Feb.
Shipping capacity
expansion completed

By the end of
this fiscal year
Quality
improvement
completed

During 1H FY22
to the planned
cost level
Recovery to
expected cost
level

16

3. Future Recovery Plan-② Impact on next fiscal yearThe impact of the recovery period for the trouble itself will be settled by the end of this fiscal year.
Sales, profit, and profit margin are expected to increase significantly next fiscal year due to the earlycompletion of the recovery plan for productivity improvement.

Business impact for next fiscal year

Impact for the current fiscal year

Sales

1.5bn yen

about▲

Profit

The impact of the trouble on our businesswill be settled in this fiscal year,
and No impact on next fiscal yearComplete the recovery planfor productivity improvement as soon as possible
and Strengthen profitability on scheduleAbout▲1.5-▲2.0
bn yenImpacts will becontained within thisfiscal year

Sales, profit, and profit margin are expected
to increase in the next fiscal year.

171-4. Measures in 4Q

3. Measures in 4Q-① Promotion of new subscriber acquisition
Recovery Plan "1: Expansion of the Quantity" will be completed by the end of February,and large-scale promotions, including TV commercials, will be implemented on schedule
for the spring season when new life begins.
(TV commercials are scheduled to start airing on February 17.)

1

TV Commercial

・ New Oisix commercial to air from Feb. 17

2

Expansion of web ad campaigns.

（Images of the past）（Images of the past）

19

3. Measures in 4Q-② Sales promotion for current subscribers
Freezing fee campaign started today, on Feb. 10.With the launch of the new service "Patto Oisix" (Feb. 24), we
have been working on frozen products, which are in increasing demand due to the expansion of COVID.The
launch of the new service "Pato Oisix".We will aim to increase ARPU by strengthening sales of frozen productsthat we have been able to deliver stably from other distribution stations.

1

Strengthen sales of frozen foods“Patto Oisix”

2NEW● Frozen lunches
that only need to be
microwaved up● 1 Step Side Dish

Disney Kit Oisix Course

・ Focusing on further nutrition education efforts
by making the meal kits featuring Disneycharacters a yearly course.

It contains more vegetables than any other frozen foodever had.

＋Four-week campaign
with no refrigeration fees

20

マスター タイトルの書式設定

2. Results Forecast Revisions

Highlights
of Results Forecast Revisions-SalesSales increased due to steady progress in the number of suscribers and ARPU compared to the initialplan assumption. On the other hand, there was a loss of sales due to trouble at Shin Ebina Station.
As a result, sales were revised upward by about 8 bn yen.

-EBITDA

Profit increase due to steady progress in the number of suscribers and ARPU.
On the other hand, profit loss due to trouble at Shin Ebina station. As a result, EBITDA was revised
downward by 0.5-1.0 billion yen and operating income by 1.0-1.5 billion yen.

-Operating
Infome(Please refer to the APPENDIX page for the difference between the downward revision of EBITDA and operating income)

Initialforecast

Sales

105.0bn yen

Revised forcast

113.0bn yen

EBITDA

6.5bn yen

5.5-6.0bn yen

Operating
Income5.0bn yen

3.5-4.0bn yen

3.0bn yen

2.5bn yenNet
incomeAttributable toowners of theparentChange%+8.0bn yen

+7.6%

▲0.5-

▲7.7%-▲1.0bn yen▲1.0-▲15.4%▲20.0%-▲1.5bn yen▲30.0%▲0.5bn yen▲16.7%

22

EBITDA：Forecast trend
EBITDA was expected to be about 7.5 bn yen before the trouble,
compared to the initial forecast of 6.5 bn yen.
However, due to the costs related to the distribution center trouble (about 1.5-2.0 bn yen),
We now expects to arrive at 5.5-6.0 bn yen (Revised downward by 0.5-1.0 bn yen).

-EBITDA：Forecast trend（bn yen）
１

Increased
demand forfooddelivery

6.5

Increased demand for food delivery：about+0.5bn yen

2Change in rent of Shin Ebina Station todepreciation expense

7.5
約5

約5
0.5

▲1.5

-

0.5

2

１

Transfer of New
Ebina Station Rent
Expenses toDepreciation
Expenses▲2.0(Change in Accounting Standard)

5.5-6.0：about+0.5bn yen

3TroubleCost

・Refer to the APPENDIX page for details.
３

New Ebina Station Trouble Cost
：about▲1.5-▲2.0bn yen

Original

Before Trouble

After Trouble

・ Cost of Trouble itself：about▲0.8-1.1bn yen

・ Cost of Recovery Period：about▲0.5-0.7bn yen

・ Promotion Suspension: about▲0.2bn yen（Refer to pages 9-14 for details）

23

マスター タイトルの書式設定

3-1.2022/3 Q3 Achievements

Executive Summary-2022/3 Q3 Achievements
Sales
With lifting of state-of-emergency declarations in October, new subscriptions andpurchase frequencies have slowed relative to the high levels seen in 1H.
Led by Oisix, however, sales have shown healthy growth at +17% YoY.
◆ Domestic Home Delivery
Even in Q3, when acquisition efficiency declines seasonally, the three major brands✓ Subscribers ：increased by about 0.8 million subscribers.
(Excluding about 1 million subscribers affected by the cancellation of subscriptions of suscribers with low
purchasing frequency at Oisix)✓ ARPU：

Despite a gradual decrease in purchase frequency due to increased opportunities togo out, all three brands continued to enjoy high levels of growth, up 2% to 13%
from pre-COVOD-19 levels◆ Other Businss✓ Purple Carrot (U.S.), which saw a near doubling in business last year,
saw a decline in subscriptions in the Q2 owing to such factors as renewed economic activity.

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.
✓Expenditure of about 400 mn yen (logistics cost and depreciation) in Q3 non-consolidated
for relocation to Oisix New Ebina Center as planned.

25

2022/3 Q3 Achievements
Sales：With lifting of state-of-emergency declarations in October, new subscriptions
and purchase frequencies have slowed relative to the high levels seen in 1H.
Led by Oisix, however, sales have shown healthy growth at +17% YoY.

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

Sales

87.40bn yen

EBITDA（ YoY ▲ 11%）

（ YoY + 17%）

Operating
Income4.97bn yen（ YoY ▲19%）

6.38bn yen

NetincomeAttributable toowners of theparent3.29bn yen（ YoY ▲15%）26

Consolidated Results Overview-Sales(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.

Continued high-level growth reflects Oisix led subscription growth and high ARPU.

Sales（bn yen）

CAGR

87.40

22.7%

（ YoY +17%)

about
84.0

74.79
about
66.0

52.42

Results

2021/3
3Q

Actual value

2020/3
3Q

Results

2019/3
3Q*

Actual value

47.31

2022/3
3Q*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.

27

Consolidated Results Overview-Profits(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.

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

EBITDANet income（bn yen）（bn yen）

7.19

CAGR

30.2%

（bn yen）

6.38（ YoY▲11%)

6.13

CAGR

30.0%

about
5.6

about
4.2

about
3.2

2021/3
3Q

Results

2019/3 2020/3
3Q
3Q*

3.29
（ YoY▲15%)

Actual value

1.59

3.90

Results

2022/33Q

2.19

Actual value

Results

2021/3
3Q

Actual value

Results

2019/3 2020/3
3Q
3Q*

Actual value

2.38

4.97
（ YoY▲19%)

about
4.3

2.81

Attributable to owners of the parent

Operating Income

2022/3
3Q

2.46
0.69

2019/33Q*

2020/33Q

2021/3
3Q*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.

2022/3
3Q

28

YoY：Sales
In the domestic home delivery business centered on Oisix, the number of subscribers increased by about
40,000 in the cumulative 3Q, and ARPU is also at a high level.
As a result, sales increased by about 12.6 bn YoY.

- Sales（bn yen）
2

(A)
About
10.6

74.79

１

Sales increase:Purple Carrot
（B）
About
▲3.4

87.40
About
1.5

About
3.9

・(A) Increase in subscribers ：about 10.6bn yen

・(B) Increase in ARPU

3：about▲3.4bn yen

Sales increase:Other

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

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

Sales increase of
3 home delivery business: about7.2bn yen

３2022/3
3Q

Sales increase of Other：about3.9bn yen
・EC support
・Kindergarten wholesale・Hong Kong/ Shanghai
・Consolidated subsidiaries(include new consolidation by "Toyoichi")29

YoY：EBITDA
Aggressive investment costs for growth, including new PR costs for the three home delivery businesses andtransition costs (including depreciation) for the Oisix new Ebina Station .
EBITDA is also progressing better than expected due to steady growth in the number of subscribers and ARPU
and sales growth.

１ Profits increase of-EBITDA（bn yen）
３
（B）
About
（A） ▲0.8
About
2.1

7.19

PurpleCarrotConsolidatio
About
▲2.2

２

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

2021/3
3Q

Profits
Increase:Other

・(A) Increase in subscribers ：about+2.1bn yen
・(B) Increase in ARPU

About
0.4

1

4

3 home delivery business：about1.3bn yen

About
0.3

About
▲0.6

6.38

2

：about▲0.8bn yen

Increased investment in growth：about▲2.2bn yen
・(C) PR investment:about▲2.0bn yen
・(D) Increase in logistics costs for
new Oisix distribution center:about▲0.2bn yen

5 Fixed cost
increase*In addition, depreciation and amortization increased
by about 0.3 bn yen, affecting operating income.

3 Profit increase of Purple Carrot：about+0.4bn yen
4 Profits increase of Other：about+0.3bn yen
5 Companywide fixed costs increase：about▲0.6bn yen

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

2022/3
3Q

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

30

Business segment Results
Sales

Oisix

Daichi*

RadishBoya

PurpleCarrot*(Results for
Jan to Sep)

Other
Business*

Segment profit

45.19 bn yen

6.52 bn yen(YoY +22％)(YoY ▲7％)10.15 bn yen

2.01 bn yen(YoY ▲6％)(YoY ▲7％)13.33 bn yen(YoY ▲2％)1.88 bn yen(YoY ▲23％)

Overview
・Decrease in subscribers in 3Q alone due to churn of lowfrequency customers, but increase of about 36,000 in thecurrent fiscal year.
・ARPU remained on a high trend, up 13% from pre-COVID19, despite a decline in frequency due to the resumption of
travel.
・UX improvements, such as reviewing the content of regular
proposals for new subscribers, have been successful inmaintaining a slight pace of growth.
・ARPU remained high and was up roughly +8%
vs pre-COVID levels.

・Continue to promote "Fuzoroi - Radish" to newsuscribers and refine the UX after acquisition.
・ARPU gradually declined, but remained above 2%
compared to pre-COVID-19 levels

7.89 bn yen

0.98 bn yen

・The number of subscribers continues to decline due to arebound from last year's irregular increase and the impactof the economic resumption.

(YoY +24％)(YoY +74%)

・On the other hand, the impact has been less severe than
expected and business remained profitable in 3Q.

11.19 bn yen

1.29 bn yen(YoY +55％)(YoY +25％)

・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.

*Segment profit of Daichi, Purple Carrot, and other businesses differs from the segment figures in the Financial Results
due to the deduction of goodwill amortizations and the impact of Earn-out.

31

Business segment
Results Overview
Sales

87.40

bn yenMarginal profit

Other

11.6％

Segment costs

PurpleCarrotMarginal profit Segment costs

RadishBoya

Marginal profit

Daichi

Marginal profit Segment costs

74.71bn yen

12.5％

14.1％

Total segment costs

Segment costs

19.8％

Total
Marginal profit

12.69
Marginal profit Segment costs

Oisix

14.4％

bn yenCompanywide fixed costs,
Goodwill etc

7.72bn yen
Operating Income

4.97

bn yen32

マスター タイトルの書式設定

3-2.Business Segment Summary

Overview of Business Segments

1

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, Shanghai

4

Other Business34

＊Cancellation procedures were implemented forcustomers who place orders very infrequently. The
number of suscribers will decrease by about 10,000 in
3Q, but there will be almost no impact on sales.

Oisix KPI

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

Overseas Business
Other Business

Subscribers：Owing to measures designed to eliminate inactive accounts,
subscriptions for the period mainly between Sept. and Nov. fell roughly 10,000 and resulted
in a 2Q decline. Cumulative subscriptions through 3Q, however, increased by 36,000.
ARPU ：As regards to unit customer basket values, sales of high-priced items (e.g., year-end seasonal products)
were strong. Whilst overall purchase frequency fell reflecting increased opportunities to go out,
overall ARPU continued to be in excess of 10% above pre-COVID-19 levels.

No. of subscribers

ARPU

345,40912,880yen（ YoY + 21％）

Excluding the impactof low-frequency member cancellations（ YoY ▲2％ , vs 2020/3 +13％）

355,556
347,7722022/32021/32020/3Results

333,850

345,40913,822308,899
285,168
274,929

12,986

13,106

12,88012,564

252,303239,837
230,393
226,187
221,612

13,042

Results

Excluding the impactof low-frequency member cancellations

12,614
11,745
11,379

11,095
10,6342020/3 2020/3 2020/3 2020/3 2021/3 2021/3 2021/3 2021/3 2022/3 2022/3 2022/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

4Q

*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

35

Domestic Delivery business（Three major brands）
Domestic Delivery business

Oisix KPI

（Other）

Overseas Business
Other Business

The number of Kit Oisix course subscribers increased
by a net 7,000 in 3Q alone (included in the increase in Oisix subscribers).
In the midst of prolonged stay-home life, the experience of being able to make premium meals
in a short amount of time, regardless of cooking skills, is gaining support.

◆Features of Kit Oisix

No. of Kit Oisix course subscribers*(Includes Oisix subscribers)

217,680（ YoY

You can make two main dishes and side

✓ dishes in less than 20 minutes.

✓ Uses 5 or more kinds of vegetables
collected from contract farmers.

+33％）
217,680

209,964✓ Reduced food waste because theingredients are used up

198,821
181,930

156,416

163,496

140,934
119,458

130,165
124,753 128,320

2020/3 2020/3 2020/3 2020/3 2021/3 2021/3 2021/3 2021/3 2022/3 2022/3 2022/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

*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.

36

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）-Kit Oisix Over100mm meals sold

Overseas Business
Other Business

Cumulative sales of Kit Oisix, the meal kit first launched
in Japan in 2013, surpassed the 100 mm unit mark in November.

-Total sales of Kit Oisix
Nov. 2021

100 mm meals overNov. 2019
Launch vegan Kit

・ The main product that currently
accounts for 30-40% of Oisix's sales

Dec. 2017
Meal kit selected
for Nikkei MJ hit prediction
Sep. 2014

Launch Chef collaboration
And Frozen Kit
・ Commemorating the 100 mmth meal, ameal kit with more vegetables than usual
is available.

Rapid growth bycapturing theincrease in women'ssocial advancementand double-income
households

2013
Launch Kit Oisix
13/3

14/3

15/3

16/3 17/3

18/3

19/3

20/3 21/3 22/3

37

Domestic Delivery business（Three major brands）

Daichi KPIDomestic Delivery business（Other）

Overseas Business
Other Business

Subscribers：UX improvements, such as reviewing the content of regular box proposals for new
subscribers,
have been successful, maintaining the pace of slight growth.
ARPU ：Sales of high unit price products, such as year-end goods, were good,
and the level was as high as last year when Covid-19 had a tailwind.
ARPU

No. of subscribers

45,730（YoY

24,079yen（ YoY ▲1％ 、vs 2020/3 +8％）+2％）

2022/345,73043,941

38,51744,878 44,998 45,307 45,196 45,394

2021/3

27,1172020/324,12837,532 37,121 37,127

24,35623,52024,07921,60423,251
23,02522,391
21,15920,821

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

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

4Q

* ARPU=Average Revenue Per User

38

Domestic Delivery business（Three major brands）

Radish Boya KPI

Domestic Delivery business（Other）

Overseas Business
Other Business

Subscribers：Continue to work on acquiring new suscribers through “Fuzoroi- Radish"and refining communication after joining.
ARPU ：Decreased to around the pre-Covid-19 level due to a decline in frequency caused by increased
opportunities to go out on trips, etc., and a decline in unit price caused by an increase in new subscribers.
ARPU

No. of subscribers

66,206

20,137yen（ YoY ▲4％ 、vs 2020/3 +2％）

（YoY +8％）2022/3

66,20665,32061,82261,00959,40062,51561,51866,4642021/323,18962,751

2020/358,52856,93520,88421,00020,25920,137
20,18819,74819,65918,621

18,202
17,9262020/3 2020/3 2020/3 2020/3 2021/3 2021/3 2021/3 2021/3 2022/3 2022/3 2022/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

* ARPU=Average Revenue Per User

4Q

39

Domestic Delivery business（Three major brands）

Daichi/Radish Boya Topics

Domestic Delivery business（Other）

Overseas Business
Other Business：Improved subscription box for new subscribers to reduce early contract cancellation rate.
Daichi
Radish Boya ：Established a new subscription course for "fuzoroi-Radish". Contributed to a
cumulative reduction of about 145 tons of food waste* this fiscal year.

ReduceEasy feeling of health
Processed products
to be used withvegetables are"increased."

Vegetables are"reduced" to an
amount suitable for
two adults.

145

t
Food Waste

First proposed menu

The “fuzoroi-Radish" is a series that specializes in the sale ofnon-standard agricultural and marine products.

・ Via set menus enabling a “ready healthexperience” and new value propositions,
we have been able to reduce churn.

・ Commenced sales of a new subscription
course that includes in a regular box set
processed items from fuzoroi-Radish andmarine products.

*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.

40

Domestic Delivery business（Three major brands）

Domestic Delivery Topics

Domestic Delivery business（Japanese New Year Dish :Osechi）（Other）

Overseas Business
Other BusinessIn light of difficulties faced by customers in planning for year-end holidays vis-à-vis COVID-19,
we implemented countermeasures including extension of cancellation periods and accommodations
for last-minute orders. Sales grew ＋11% YoY.

・ Repeat sales promotions to past users
showing strong results.

・ Strengthened sales promotions to
new subscribers.

・ Exceeding last year’s Covid-19 boosted
numbers, sales volume posted a recordhigh.

・ Created a new sales website
page directed at the generalaudience.

・ Higher-priced products are
performing better than usual.
・Thanks to the ingenuity of planssuch as Osechi with donations record
sales volume and sales.

Overall, sales achieved ＋11% growth YoY.
41

Overview of Business
Segments
1

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, Shanghai

4

Other Business

42

Domestic Delivery business（Three major brands）

EC Support

Domestic Delivery business（Other）

Overseas Business
Other Business

The overall level of subscriptions has risen and continues to perform well YoY.
We look to promote development of original services/products by leveraging knowledgeof individual customer needs.

Support for Isetan Mitsukoshi's EC
business Commissioned from operationand management of EC sites to
distribution and delivery.

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

Results
・ Continued strong year-on-year growthin both subscribers and sales

Results
・ Continued strong year-on-year growthin both subscribers and sales

Topics・ A product line-up allowing at-home enjoyment ofhigh-quality department store products is seeing strong
popularity.

Topics・ Expanding point-based promotional campaigns withthe start of cooperative arrangements with d-Point.

43

Tokushimaru

Domestic Delivery business（Three major brands）

Subsidiary

Mobile car sales businessfor shopping refugees

Domestic Delivery business（Other）

May.2016～

Overseas Business
Other Business

Owing to growing demand for mobile services, the value of total distribution grew 39% YoY as strong
performance continued. By reinforcing supervisory staffing, relationships with partner supermarkets havebeen strengthened allowing for steady growth in the number of operating vehicles.
Development Scale

Impact scale
2022/3 1H value of circulation

16.89

bn yenNumber of vehicles
in operation

948

Number of affiliatedsupermarkets

142

Number of vehicles
in operation

743（YoY +277）（YoY +39%）

16.89
12.14

948

7.83
5.85
4.05
288

・ Partnerships with 142 supermarkets,with growth in the number of units
in operation in 42 prefectures nationwide

671
473

362

2018/3

2019/32020/32021/32022/3

3Q累計
3Q

3Q累計

3Q累計

3Q累計

3Q累計

3Q

3Q

3Q

・ Ito-Yokado Co., Ltd. made a significant
contribution to the number of units inoperation by strengthening advertising for Tokushimaru.

3Q

44

Overview of Business Segments

1

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, Shanghai

4

Other Business45

Purple Carrot＜U.S.＞

Subsidiary
May, 2019~

Domestic Delivery business（Three major brands）※Purple Carrot shows the businessperiod from Jan. to Sep.

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 suscribers 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）
Business Overview
・ Home delivery service offering meal kitswith only 100% vegan foodSales
Operating Income

・ Weekly home delivery to 48 states in thecontinental U.S. subscription model

27

・ Veganism is a lifestyle in which people do notconsume 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.

23

Returned to
profitability

24
22

22

3Q

4Q

21

15
consolidated

1Q

2Q

3Q

4Q

1Q

2Q

1Q

2Q

3Q

46

Purple Carrot＜U.S.＞

Domestic Delivery business（Three major brands）

Subsidiary

Domestic Delivery business（Other）

May,
2019~
2019年5月～

Overseas Business
Other Business

A “Ready to Eat” line of microwavable meals was launched in the United States.
In addition to existing meal kits, we have expanded our lineup of more convenient products to target andattract customers with an interest in easy adoption of veganism.

- Expansion of "Ready to Eat" microwave
cooking products・ Via plant-based food products that make it evereasier to start vegan-style dining, we look to
support a healthier lifestyle full of pleasantsurprises and joy.

Launched in 48 U.S. states

2021 Sales area tobe expanded
gradually to 48
mainland states

Sales to begin on
the East Coast in
2020

47

Domestic Delivery business（Three major brands）

Hong Kong/Shanghai

Domestic Delivery business（Other）

Overseas Business
Other Business

Hoang Kong：The negative repercussion effect in subscriptions following COVID appears
to 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
Launched the service in 2009.
Cross-border delivery of Japanese products

ShanghaiBusiness experiment started in 2017. Deliver productsthat meet Oisix product standards by local procurement

Results
・ After an increase in the number of suscribers
due to COVID-19, there was a reactionary
decline, but the decline is bottoming out.

・ Travel restrictions due to COVID-19 impact eased
Detailed field survey to begin

Topics・ Based on a Japanese autumn theme, we presented
gifts of mounting/message cards with autumn foliage
patterns to increase brand awareness via SNS posts.

・ The trial set was sold at supermarkets and sold better
than expected. Awareness of the product gradually
spread through SNS posts of customers' finishedproducts.

Topics48

Overview of Business Segments

1

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, Shanghai

4

Other Business49

Domestic Delivery business（Three major brands）

Nursery School Wholesale/SinS

Domestic Delivery business（Other）

Overseas Business
Other Business

Nursery School Wholesale：We launched popular school lunch menus as KitOisix recipes so that they
can be enjoyed at home
SinS： Based on a store model centered on KitOisix sales, store growth continues to be strong.
Nursery School Wholesale

Shop in Shop（suku-suku Oisix）
Sales of nutritionally controlled menus and ingredientsfor nursery schools
Sales

0.90

Sales

0.68

bn yenbn yen（YoY +5%）（YoY +37%）

No. of trading nursery school

No. of shops

656

0.90

（YoY +227）

0.73
0.66 ＊

0.56

323

Selling KitOisix and fruit and vegetableproducts at the supermarkets of our clients

363

251
（YoY +93）

0.55

0.58

0.64

656

251
138

429

0.68

153

158

2019/32020/32021/32022/3

2019/32020/32021/32022/3

3Q
3Q累計

3Q累計
3Q

3Q累計
3Q

3Q累計
3Q

3Q累計
3Q

3Q累計
3Q

3Q累計
3Q

3Q累計
3Q

*In the 2021/3 period, the nursery school was closed
one after another due to COVID-19, resulting in an irregular decrease in sales.

504. ESG Topics

51

Upcycle by Oisix
Selling "Upcycle" that adds value to what was previously
abandoned About 15 tons of food waste has been reduced since the sale.
By selling upcycle chocolate timed to Valentine’s Day, we accelerate a new initiative to makeenvironmentally friendly products readily accessible.

▲Upcycled "chocolate crunch"Broccoli stems and radish peels used
Eggplant stems used

52

*消費されなかったり家庭で使い切れずに残ったりする非可食部も含む食品・出荷規格外のため小売流通しない食材を、商品化して活用した重量・廃棄を未然に防いだ重量をさす。
出荷重量には、提携先工場の商品製造・加工の過程で出る廃棄食材（他社商品製造過程での排出含む）、需要過多による代品販売重量も含む。

WeSupport Family
We created the "WeSupport Family" platform to provide food support for needy families with children.
With 18 food/retail companies participating, 6 organizations have been provided
support in the first three months of operation.

WeSupport Family
Mainly for those led by single parents,
WeSupport Family is a food support platform
for needy families. Via such initiatives as useof excess inventories among supporting
entities, we also aim to help solve theproblem of food waste.

SupportCompany

Recipient of
support22

About

Food and retail companies

2,700household- Background of the Activity
・In April 2020, we established "WeSupport Medical" toprovide 760,000 meals to 124 medical institutions debilitatedby Covid-19. In November 2021, the platform was used tostart a food support program for needy families withchildren.
- WeSupport Family image

53

Initiative to provide
support for milk sales
Owing to suspension of year-end/beginning school lunches and a persistent decline
in consumption of travel related gift confectionary, a nationwide surplus of raw milk resulted.
To support dairy farmers, we implemented discount sales of milk and milk-based productsthat help mitigate the situation.
- Support sales for milk surpluses during the year-end and New Year holidays

・ During Covid-19 related school closures and summer break extensions, we implemented sales supportof milk for school lunches. Stimulating demand for milk and supporting dairy farmers even during thewinter when milk consumption is low

54

APPENDIX・DATA SHEET

55

Corporate Overview

Name：

Oisix ra daichi Inc.

Location：

Shinagawa-ku, Tokyo

Established：

June 2000

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

Employees：

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

56

Overview of Affiliates

Consolidated subsidiaries

Karabiner Inc.

Develops alliances with supermarkets in the mobile supermarket business;
provides expertise to sales partners.
Handles processing, product development, and sales,
for agricultural produce, including fruits and vegetables.
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

Tokushi-maru Inc.
Fruits Basket Co., Ltd.

Main Affiliates
Nihon Agri Inc.

Exports agricultural products.

DEAN & DELUCA

Lifestyle business through retail and restaurant businesses

57

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.
(bn yen)

October 2018

March 2013

May 2019

The Company merges
with Radish Boya

The Company lists on
TSE Mothers

Three Limes, Inc.
(also known as Purple Carrot), a U.S.
company, becomes a subsidiary of theCompany

February 2019
The operator of DEAN & DELUCA
JAPAN becomes an affiliated companyof the Company

100.0

August 2013
The Company forms a business and capitalalliance with DEAN & DELUCA Japan (current
Welcome Co., Ltd.)

October 2017
Daichi wo Mamorukai merges
with the Company

40.0

EBITDA

14.6

15.9

18.1

20.2

8.9

62.5 *

May 2016
Tokushimaru, which operates amobile supermarket business for
elderly customers, becomes a
subsidiary of the Company

Sales

71.0

3.1

23.0

*

3.5

1.7

0.9

0.9

0.8

1.0

1.0

2013/3

2014/3

2015/3

2016/32017/3

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.

58

Seasonal fluctuations inbusiness performance
We have a business model in which sales and profit margins fluctuate from quarter to quarter.
Sales and profit margins improved in 3Q due to sales of high unit price products during the year-end
and New Year holidays, while sales and profit margins declined in 2Q due to the summer vacation.

- Seasonal changes in normal conditions

Sales*

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

4Q(1-3)slight increase

Decrease

Increaseslight decrease

Increase in sales forMother's Day and otherevents Slight increase

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 decreaseflat

aggravation

improvement

flat

Spring PR costinvestment

Deterioration due todecrease in ARPU

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

Spring season PR costinvestment (scale ofinvestment flexibly
adjusted depending on
business conditions)profit ratio*- Impact of COVIⅮ-19 Seasonal Variations
Due to the impact of COVID, seasonal fluctuations such as the impact of summer vacation are expected to be smaller
than normal in FY2021.3 and FY2022.3, but seasonal fluctuations are expected to return to normal in the future.

*Sales: Image of seasonal changes in sales assuming a constant number of suscribers 59*Profit margin: Assumption that there are no irregular cost investments

Trend in No. of Employees

915

Ratio of female employees- Total860- Full-time

735
65%

680

47%

421

192
163

179

2013/3

2014/3

2015/3210

2016/32017/3

2018/3

2019/32020/32021/360

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

■Inside Directors

Chairman
Yoshikazu Fujita
Appointed 2017
Director of Fruit Basket Co., Ltd,
President and CEO of
Sougounousha Yamagatamura
Corp.

President and CEO
Kohey Takashima
Appointed 2000
Representative Director of
Gochimaru Co., Ltd., Chief
Director of Eat, and Energize theEast, Director of Oisix Hong Kong
Co.,Ltd

Director
Yusuke Tsutsumi
Appointed 2000

Director
Hiroyuki Ozaki
Appointed 2010

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
Junko Watabe

Director
Wakako Sakurai

Director
Kouhei Matsumoto
Appointed 2018
Director and Executive Officer ofOisix Inc., General Manager ofCorporate Planning Division■Outside Directors

Director
Mitsuyo Hanada

Appointed 2008
Keio University Honorary
Professor, Chief Director of FC
Forum, Representative Directorof Corporate University Platform,
Inc.

Director
Hitoshi Tanaka
Appointed 2015
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.

Appointed 2019
General Manager of CRM
Promotion Office ofRecruit Holdings Co., Ltd.

Appointed 2018
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" established61

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.

62

Our Subscription Model
Expanding our business areas to include alliances and marketing support for other companies based onsubscription 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

63What Our Three Brands Deliver
Based on the distribution of safe, reliable food products, each of our three brands 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

64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

ProfitPriceperpurchase

CPA
recovery
periodProfit LTV
Profitabledeliveries

0
Time
CPA

CPA: cost per acquisition
Profit LTV: lifetime acquisition value

Loss-making
deliveries
人数

65

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
decisions66Differences in the assetsof the three brands

How tojoin

WEB mainly

How toorder

WEB mainly

Logistics
bases

4 placein Kanagawa

Last One
Mile

Yamato trucks
about 99％

WEB/
door-to-door sales

WEB mainly

WEB/
Paper catalogs/
TEL

WEB/
Paper catalogs/
TEL

4 placesin Hokkaido,
Tokyo, Kanagawa,
Osaka.
Our trucks
about 95％
（area around
Logistics bases）

1 placein Chiba

Our trucks
about 80％
（area aroundmetropolitan area）

67

Oisix Progress of Logistics Strategy
製造

To achieve further business growth, we will invest in logistics to expand capacity
and 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. P11 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

68

Domestic Delivery business（Three major brands）

EC support

Domestic Delivery business（Other）

Overseas Business
Other BusinessWe 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
Operation and management of
e-commerce sites focusing on foodLogistics andDistribution
Providing assets forfood delivery

product development
Development and provision of
products that meet client needs

69

Domestic Delivery business（Three major brands）“Tokushimaru” (subsidiary)

Domestic Delivery business（Other）

Overseas Business
Other Business

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

13％・ 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.

Products

Product gross profits
30％
17％

Sales partners

In-person
sales

Owner-operators＋5 yen＋5円

Customers+10 yen rule70

Domestic Delivery business（Three major brands）

Overseas Home Delivery

Domestic Delivery business（Other）

Overseas Business
Other BusinessHong 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- Oisix Shanghai

U.S. Meal Kit Market*

・ Started the service in 2017.
Grasp the needs to establish thesubscription model for Chinese
customers

$2.5
bn
USD

2017

$9
bn
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 of
COVIDvirus, both users andsales are dramaticallyincreasing

×・ Global expansion of vegan food x Japanesefood “Health Conscious Food” both in Asia andthe 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』

71

Domestic Delivery business（Three major brands）

Shop in Shop

Domestic Delivery business（Other）

Overseas Business
Other Business

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, wewill expand our recognition to the segment that wecannot reach through online advertising.
・ Our products are expected to attract customers to
our partner stores.

72

Domestic Delivery business（Three major brands）

Nursery School Wholesale（suku-suku Oisix）

Domestic Delivery business（Other）

Overseas Business
Other Business

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 be ordered inbulk.
・ Confronting children's food problems. And
to raise awareness of our company among parents.

73

Future Food Fund(subsidiary)
Utilizing our experience at the time of our founding, we will build an ecosystem of food tech that provides awide 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

Infrastructure74

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
Attributableto owners of
the parent

270

390

695

790

（mn yen）

Sales

4Q

1Q

2Q

3Q

74,790 100,061

27,911

56,16787,400

3,976

6,131

7,465

1,950

3,347

4,979

2,419

4,679

7,198

8,902

2,316

4,188

6,385

1,184

2,452

3,900

5,031

1,293

2,156

3,294

75

DATA SHEET：Business Segment Result- Business Segment Result
2020/3
1Q（mn yen）

Sales
Oisix

Daichi

Radish Boya

Purple Carrot

Other
Business*2Q

2021/3

3Q

4Q

1Q

2Q

2022/3

3Q

4Q

1Q

2Q

3Q

8,308 16,524 26,522 35,829 11,265 23,047 37,036 49,863 14,145 28,580 45,190

Marginal
profit

933

1,868

3,261

4,801

2,367

4,335

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 10,154

Marginal
profit

457

885

Sales

3,770

Marginal
profit

688

1,273

2,001

2,667

899

1,626

2,449

3,023

584

1,143

1,883

Sales

-

-

-

-

-

-

-

-

2,842

5,536

7,893

Marginal
profit

-

-

-

-

-

-

-

-

549

811

985

Sales

1,663

3,529

6,383

9,497

3,601

8,522 13,600 18,922

3,373

Marginal
profit

256

557

656

846

391

1,038

1,599

2,320

427

869

1,295

1,792

3,683

5,719

7,736

2,305

4,391

7,089

9,655

2,329

4,842

7,720

Companywide fixed costs,
Goodwill etc

1,397

1,889

724

7,459 11,410 14,980

4,721

1,368

7,012

2,160

2,751

663

9,083 13,653 17,704

4,331

1,319

6,525

2,010

8,732 13,336

6,911 11,194*From 2022/3, Purple Carrot has been separated from other businesses and disclosed.

76

Data Sheet：Main KPI- KPI trend
2020/3
1Q
Subscribers(number)

Oisix

Daichi2Q

2021/3

3Q

4Q

1Q

2Q

2022/3

3Q

4Q

1Q

2Q

3Q

221,612 226,187 230,393 239,837 252,303 274,929 285,168 308,899 333,850 347,772 345,409

ARPU
（yen）

11,095

10,634

11,37911,745

13,822

12,986

13,106

13,042

12,891

12,564

12,880Price/
purchase
（yen）

5,884

5,840

6,055

6,166

6,748

6,201

6,315

6,215

6,098

6,057

6,220

Purchase
Frequency(number)

1.89

1.82

1.88

1.90

2.05

2.09

2.08

2.10

2.11

2.07

2.07

Subscribers(number)

38,51737,532

37,121

37,12743,94144,87844,99845,30745,19645,39445,730ARPU（yen）

20,821

21,15922,391

21,604

27,117

24,12824,35623,52023,02523,251

24,079Price/
purchase
（yen）

8,195

8,292

8,732

8,508

9,234

8,610

9,000

8,729

8,425

8,557

9,002

Purchase
Frequency(number)

2.54

2.55

2.56

2.54

2.94

2.80

2.71

2.69

2.73

2.72

2.67

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

61,51862,751

65,32066,464

66,20618,202

17,926

19,65918,621

23,18920,88421,00020,25920,18819,74820,137

6,055

6,060

6,398

6,206

7,028

6,373

6,696

6,441

6,402

6,407

6,589

3.01

2.96

3.07

3.00

3.30

3.28

3.14

3.15

3.15

3.08

3.06

Subscribers(number)

ARPU

Radish （yen）
Price/
Boyapurchase（yen）

Purchase
Frequency(number)77

(Reference)
Difference between the downward revisionof EBITDA and operating income
At the time of the original Forecast, about 500 mm yen of rent for the New Ebina Station was to be recorded as SG&A
expenses, but due to a change in accounting standards, the it was changed from SG&A expenses to depreciation expenses.As
a result, EBITDA was 500 mm yen higher than originally forecasted (operating income was unaffected).As a result, there is adifference of 0.5 bn yen between the downward revision of EBITDA and operating income.

-As is revision forecast(reflecting changes in accounting standards)-As is original Forecast（bn yen）
CoGs and SG&A expenses(excluding goodwill
and depreciation)

CoGs and SG&A expenses(excluding goodwill
and depreciation)

約5

１

約5

Due to a change in accounting standards,
rent for the new Ebina station is recorded as
SG&A expenses → depreciation expenses.
EBITDA was about 0.5 bn yen higher thanoriginally planned.

New Ebina Station Rent
(0.5 bn yen)to be recorded
as SG&A expenses

2
0.5

0.5

EBITDANo impacton OP

Amortizationof goodwill
and depreciation expense

Amortizationof goodwill
and depreciation expense

Sales

0.5

OP

Sales

EBITDA

OP

78

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 be accurate.
◆ Actual operating results may differ from the future outlooks contained in this material.

79