FY2014 1Q Result Report(April 1, 2014 – June 30, 2014)

August, 2014
Oisix Inc.

0. Contents

1. About Oisix

2. FY2014 1Q Result & PresentSituation
3. Oisix middle-term vision11. About Oisix

Our mission

Richer foods for more people

Not only a supplier of foods
but also organizer of happy table.

21. About Oisix
Our Business Domain
B2C

B2B
Fulfillment Outsourcing
bizWebSubscription Food
Delivery Service

PhysicalEbisu

from 2010

KichijojiMedia bizTie-up Novelty

10 Shop in Shopfrom 2010

Domestic

Wholesale

Oversea

Oisix Station (Distribution Center, Central Kitchen),
IT system, High Added Value Product, Quality Management31. About Oisix
B2C Service[Oisix.com][Oisix HongKong]- Oisix HongKong have Japanese site and Chinese site
- Main product is food export from Japan[Physical Shop]-The Most largest internet-based food EC site
“Oisix.com”
Main service is subscription food delivery
service- 2 own shops (Ebisu, Kichijoji)- 10 Shop in Shop4

1. About Oisix
E-commerce system
Our web site, supporting PC & Smart phone, gives orders from customers to suppliers.
Products, once gathered to our DC are delivered to customers. Some are direct from suppliers
Safe foods
for my kids

Flexible Subscription
System（Regular purchase）

No time forshopping

Visitおいとく（Auto Ship）
Occasional Purchase

Order

Order

Kanagawa Pref.
About 6600 m2 3F
since 2012

Producers / Makers

おいくら（Oisix Club）

Delicious
vegetables

Direct from the producer

DeliveryＯｉｓｉｘ Distribution
CenterHarvest & Delivery to DC

Direct delivery from the producers

5

1. About Oisix
Features of Oisix

Positive

We set strictly safety standards and sell only safety foodPositive

We directly connect with prime farmers and delivery delicious and fresh
food

Positive

Customers all over Japan order easily on internet

NeutralDue to harvest after customer’s order, customers wait 3-7 days but get fresh
food

NeutralOur products are high-added value and high-priced60. Contents

1. About Oisix

2. FY2014 1Q Result & Present
Situation
3. Oisix middle-term vision

7

1Q FY2014 Highlights■ Announced that we expected to register losses for 1Q FY2014,
operating profit turned into the black, 47 million yen, by controlling
fixes cost and variable cost (expect for sales promotion expenses)■ The number of subscribers strongly increased to 87,000 (+13% YoY)
- Focused on acquisition of new subscribers by spending sales promotion expenses(+4,937 subscribers QoQ)

■ New services released in FY2013 are showing stable expansion- “KitOisix” (half processed food set) sold more than 300,000 kits in total- The number of premium brand stores on “Oichika gourmet” (mall-type E-commerce service)increased to 71 (+34% QoQ)

■ Launch Salad Oisix for Office, our first business in “business-toemployee (B2E)” market- Delivery salad with Oisix’s vegetable to office workers

8Overview of 1Q FY2014■ Announced that we expected to register losses for 1Q FY2014＊,
operating profit turned into the black, 47 million yen, by controlling
fixes cost and variable cost (expect for sales promotion expenses)(¥m)

FY20141Q

FY2013
1Q

YoY

Forecast
1H

Progress
1H

Forecastyear

Progressyear

4,104

3,748

109%

8,274

49%

18,30022%

Operating Profit

47197

24%

7266%

750

6%

Recurring Profit

55202

27%

8366%

7757%

Net Profit

31121

25%

5062%

465

6%

Sales

*“FY2013 Financial Results(in Japanese)”p3 financial forecast

9Net Sales■ The year-over-year growth rate was improved,
and net sales for 1Q FY2014 exceeded 4.1 billion yen.
（¥m）
5,000

Growth rate

4,596

9.5%

4,500

(＋¥355 million)

4,334

Growth rate
4.0%

4,104(＋¥145 million)
4,000

3,936

3,748
3,627

3,603
3,500

3,377
3,261

3,000
1Q

2Q

3Q

FY2012

4Q

1Q

2Q

3Q

FY2013

4Q

1Q

FY2014

10

Number of Subscribers■ The number of subscribers strongly increased to 87,000 (+13% YoY)

Growth rate

13.1%（＋10,081）
Growth rate
1.2%(＋966)

FY2012FY2013

FY201411

Transition of ARPU
*ARPU: Average Revenue Per User

■ ARPU* improved by 12,593 yen (+6.1% YoY)
- Both the frequency of purchases per month and the unit price increased（¥）

ARPU：：Frequency × Unit Price
Growth rate
6.1%（＋¥720.8）

14,000

Annual Rise Point
(3Q)

ARPU
13,50013,46813,011
13,00012,593
12,50012,27812,127

12,006

12,001

11,866

11,872

12,00011,50011,000
1Q

2Q

3Q

4Q

1Q

2Q

FY2012

2.15

2.12

2.10
2.07

6,426

6,400

2.12

6,244

2.10

6,200

6,057

5,930

2.06

×2.05

1.95

1.90

6,000
5,791

5,770

5,756

5,800

5,717

5,602

Growth rate
3.0%（＋0.06）

1.97

2.00

1Q

FY2014

Unit Price

6,600

2.15

2.10
2.10

4Q

FY2013Frequency

2.20

3Q

Growth rate
3.0%（＋¥173.4）

5,600

5,400

5,200

1.85

5,000
1Q

2Q

3Q

FY2012

4Q

1Q

2Q

3Q

FY2013

4Q

1Q

FY2014

1Q

2Q

3Q

FY2012

4Q

1Q

2Q

3Q

FY2013

4Q

1Q

FY201412

EC(Oisix.com)■ Expansion of new service “KitOisix”- For busy mama, we launched KitOisix that is half processed food set.
It needs only 20 minute for cooking.
The number ofKitOisix subscribers■only 20 min Main dish & sub dish12,000More than

12,00010,000（as of July 31, 2014）

8,000

6,000

4,000

Sold in total
2,000(as of July 17, 2014)

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3
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O
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3
No
v13
De
c13
Ja
n14
Fe
b14
M
ar-1
4
Ap
r14
M
ay-1
4
Ju
n14
Ju
l-1
40
Ju

Working mother don’t have much time
for cooking, so this is convenience forthem.

400,000 Kits

EC(Oisix.com)■ Expansion of new service “KitOisix”■KitOisix subscriber’s LTV is 22% above
normal subscriber’s LTV■KitOisix get Parenting award 201322%UP■KitOisix media publicity

122%
100%

Normalsubscriber
LTV

KitOisix
subscriber
LTV14

EC(Oisix.com)■ For establish premium branding, improvement unit price, we launch“Oichika gourmet” that service is delivery hi-end brand food with our food.
■Hi-end brand store

15

EC(Oisix.com)■ Expansion of new service “Oichika gourmet”- The number of premium brand stores increased to 71 (+34% QoQ)
- Contributed to net sales in the E-commerce business■ Collaborative products with Hi-end brand

The number of storeson Oichika gourmet

8071stores

70

60

50

with LA BOUTIQUE de Joël Robuchon
40

30

20

with Inés Ligron
10

Jun-14May-14Apr-14Mar-14Feb-14Jan-14

Dec-13

Nov-13Oct-13

Sep-13Aug-13

Jul-13Jun-13May-130with Soup Stock TOKYO

16

New customer acquisition method

Leverage ofnew service－So far, our main target segment is mama
who are interested food safety.
－“KitOisix” reach working mother and busy mother.
－“Oichika gourmet” reach people interested in gourmet.
－Improvement name recognition by physical shop and event.

Improvement
name recognitionof physical world－Enforce acquisition from marche event.
－Improvement exposure by wholesale PB product tolarge-retailer.

Increase promotion－Promotion budget of FY2014 1Q is 50% above YoYbudget17

Physical shop
■ New own shop & 2 Shop in Shop
- 2014 January, started new own shop “Oisix CRAZY for VEGGY” at Kichijoji- Opened in Queen's Isetan & Tokyu Store (10 shops in total)

In Queen's Isetan, Kami-shakujii“Oisix CRAZY for VEGGY” Kichijoji

In Tokyu Store, Futakotamagawa

18

HongKong biz■ Oisix HK sales is above break-even point because ofintroduce subscribe purchase system, new product.
■OisixHK■OisixHK Sales and marginal profit(thousand（千円） $)60,000

売上
Sales
Marginal profit
限界利益$542,000

50,00040,000400%

30,00020,000$135,000

10,0000-10,000

2012/2Q
2012年3月期第2四半期

2013/2Q
2013年3月期第2四半期-20,000

19

Fulfillment outsourcing biz■ We started support MI Deli’s logistics part that is Mitsukoshi Isetangroup’s food delivery service from Nov 7. We start find new client.
■MI Deli■Start Oisix fulfillment service－Main menu
①Logistics（（picking,packing））②Manage of inventory③Manage of expiry date
④Food quality control－Find new cliant
・Next year, our target is our client’ssales achieve 30 M$(not our sales)■ About MI (Mitsukoshi Isetan) group－The largest department store groupin Japan

20

New Business■ Salad Oisix for Office- Delivery salad with Oisix’s vegetable to office workers- Our first business in “business-to-employee (B2E)” market

21

0. Contents

1. About Oisix

2. FY2014 1Q Result & Present
Situation
3. Oisix middle-term vision222. Oisix middle-term vision

Richer foods for more people
(b¥)
1000億

100

900億

90800億80

To 30 billion yen

To 100 billion yen- Enhancement Promotion EC biz- Functional enhancement

More 3 Business- Overseas business- Physical shop
- Senior Business

700億
70
600億
60
500億
50

100billion

30

400億
40
300億
30

15.9

200億
20billion

billion

10100億

期
2014年
3⽉

期
年
3⽉
13202012年
3⽉

期

000億

23

2. Oisix middle-term vision
FY2014 Focus Point
Focus point for 30 billion
yen

Active promotion of EC business

Point1

Transition of new subscription members
in each year

Special demandof earthquake

・Active promotion ofEC business・Investment on function
for future growth・Higher functionality
・Improvement capability

Enhancement PR

220%
180%

The base period is
FY2010 (=100%)

132%

100%

11年3月期
FY2010

Point2240%

12年3月期
FY2011

13年3月期
FY2012

14年3月期
FY201315年3月期計画
FY2014

Investment on function forfuture growth

Main investment points are
1. Launch another distribution centerfor both future growth and risk hedge
2.Scale expansion of food processing center
3.Enhancement IT platform

500-1,000million yen
200million yen
150million yen

Invest in further growth242. Oisix middle-term vision
Earnings Forecast
We invest promotion and functional enhancement. Our sales target is up 15% YoY but
operating profit keep last year level(m¥)

FY2014
Forecast

FY2013ResultSales & Operating Profit

YoY（m¥）
12,00010,000Sales

18,30015,909115%

売上2014年3月期実績
Sales
FY2013(Result)
売上2015年3月期計画
Sales
FY2014(Forecast)

8,000
6,000
4,000

Operating Profit

750

741

112%

117%

101%
2,000
0
上期
1H

Recurring Profit

775

775

100%

800700

下期

2H

営業利益
2014年3月期実績
Operating
Profit FY2013(Result)
営業利益
2015年3月期計画
Operating
Profit FY2014(Forecast)

600

Net Profit

465

436

106%

500

183%

400
300
200
10020%

0
上期

1H

下期

2H

252. Oisix middle-term vision
Sales & Operating profit(¥m)
6.0%

25,000Sales
売上高

Operatingprofit
営業利益率

18.1

5.0%
20,000

4.7%

billion

5.0%

4.7%

4.6%

4.0%

1 5 ,9 0 93.9%
14,57615,000

4.1%

3.3%
12,6103.0%

10,000
8,210

2.0%

6,971
6,097
5,000

1.0%

0.0%
3⽉

期

3⽉
期

年年

1514予想）20

202013

年

3⽉
期

3⽉
期
20

12

年

3⽉
期
20

11

年

3⽉
期
年
10
20

20

09

年

3⽉
期

0

26