Results
Briefing Material
決算説明資料
FY3/2017 Q3
2017年3月期3Q
オイシックス株式会社
Oisix Inc.

Our Corporate Philosophy
Fabulous food. To as many people as possible.
At Oisix (pronounced oishix), we are driven to provide aservice that simply allows more families to enjoy agreater and healthier variety in what they eat.
Our philosophy is not to think like a producer, but todeliver delicious ingredients to our customers whereverand whenever they want them.

1

Contents

1 2 3

FY3/2017 Q3Results Overview

FY3/2017 Q3
Activities Overview

FY3/2017 Q3Tokushimaru Inc.
Activities Overview

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

1

FY3/2017 Q3Results Overview

FY3/2017 Q3 Cumulative Results■SalesEC sales grew (+12.9% YoY ) thanks to an increase in subscribers and an increase intransaction volumes centered around Kits. New EC Consultancy projects won and otherbusiness resulted in overall growth of 13.2% YoY■Operating Profits
Profits fell slightly to 98.5% YoY as a result of an increase in goodwill amortization and thebooking of some costs relating to evaluation of the Daichi wo Mamoru Kai merger, etc.
Unit：Million yenSales
OperatingProfit
Recurring
ProfitQuarterly Net
Profit(Quarterly Net Profit
attributable to Oisix)

FY3/2016
Q3 Result(Parent)

FY3/2017
Q3 Result

Increase/Decrease(Consolidated) (Consolidated)(YoY)
FY3/2017
TargetAs
Targetpercentage Achievemen(YoY)
t rate15,117

17,11323,000+1,996113.2%

74.4%

634

625

820

-9

98.5%

76.2%

657

647

830

-10

98.4%

77.9%

427

429

580

+2

100.4%

73.9%

4

Q3 Cumulative Sales Trends
Strong acquisition of new subscribers translated into 13.1% YoY sales growth
and the recording of a historical high for the sixteenth consecutive year

+13.1% YoY(¥mn)

17,11318,00016,00015,118
13,576

14,000Q3

11,973
12,00011,19910,000

9,282

Q2

8,000
6,205
6,000

5,311
4,622

4,000

Q1

2,000
0FY3/2009

FY3/2010

FY3/2011

FY3/2012

FY3/2013

FY3/2014

FY3/2015

FY3/2016

FY3/2017

Q1–Q3

Q1–Q3

Q1–Q3

Q1–Q3

Q1–Q3

Q1–Q3

Q1–Q3

Q1–Q3

Q1–Q3

5

Subscriber Trends
There has been strong growth in our most important KPI, the number of subscribers who makeregular purchases (NRPS), thanks to healthy sales of our Premium Jitan Service centered around
Kit Oisix. Aided by the success of events such as Oisix Day (Oct 16 th) and our Black Friday Sale,
NRPS grew from 111,000 at the end of FY3/2016 to 130,000
Since end FY3/16 +17.6%

Total No. Subscribers

130,673

135,000

125,000

124,283

125,000

118,124
111,036

115,000

107,539
105,000

101,079

102,780

96,71895,00091,54093,47087,01885,00082,081
76,937 75,816 77,475

75,00065,000Q1

Q2

Q3

FY3/2014

Q4

Q1

Q2

Q3

FY3/2015

Q4

Q1

Q2

Q3

FY3/2016

Q4

Q1

Q2

Q3 Q4 Target
FY3/2017

6

Frequency of Purchase Trends
While there were signs of improvement with the success of Collabo Kits and PR
events, fine-tuning of sales campaigns that had been growing experimentallymeant frequency of purchases (FoP) fell to 2.00 (94.7% YoY).
(FoP) 2.30

2.25
2.20
2.12

2.15
2.10

2.16

2.15

2.05

YoY

2.11

2.11

2.08

2.15

2.07

2.09

2.07

2.07

94.7%
2.06

2.01

2.00

2.00

Q2

Q3

2.00
1.95
1.90
1.85
1.80
Q1

Q2

Q3

FY3/2014

Q4

Q1

Q2

Q3

FY3/2015

Q4

Q1

Q2

Q3

Q4

Q1

FY3/2016

FY3/2017※From this ﬁscal year, ﬁgures have changed from end-of-quarter monthly to quarterly average.

7

Customer Spending Trends
Thanks to the contribution from special demand for Christmas-related
products and a ‘to-your-door’ campaign, average customer spend came inat ¥5,975 (99.7% YoY)(¥) 7,000

6,800
6,600

99.7% YoY

6,400
6,200

5,757

5,757

Q1

Q2

5,806

5,975

5,988

5,932

6,000
5,800

6,081

6,049

5,878

5,841

5,800

5,756

5,874

5,799

5,701

5,600
5,400
5,200
5,000
Q3

FY3/2014

Q4

Q1

Q2

Q3

FY3/2015

Q4

Q1

Q2

Q3

Q4

Q1

FY3/2016

Q2

Q3

FY3/2017※From this ﬁscal year, ﬁgures have changed from end-of-quarter monthly to quarterly average.

8ARPU Trends
Mainly as a result of a lower frequency of purchase compared to Q3 FY3/2016,
ARPU was ¥11,955 (94.5% YoY)(¥) 13,000

12,84312,75012,80012,682

12,600

94.5% YoY

12,402

12,40012,20012,644
12,514

12,227
12,13912,072

11,984

11,95512,087

12,00011,80011,827

11,593

11,600

11,586

11,400
11,20011,00010,800
Q1

Q2
FY3/2014

Q3

Q4

Q1

Q2

Q3

FY3/2015

Q4

Q1

Q2

Q3

Q4

Q1

FY3/2016

Q2

Q3

FY3/2017※ARPU：Average Revenue Per User (Monthly sales attributable to each subscriber)※Purchase frequency of regular customers x amount spent/no. purchases※From this ﬁscal year, ﬁgures have changed from end-of-quarter monthly to quarterly average.

9

2

FY3/2017 Q3Activities Overview

10FY3/2017 Strategy & Action① Evolution of Oisix.com② Brand Strengthening③ Food x Healthcare④ Business Affiliations and M&A
11

FY3/2017 Strategy & Action① Evolution of Oisix.com② Brand Strengthening③ Food x Healthcare④ Business Affiliations and M&A12

Sales of OSECHI (traditional new year cuisine)
Launched in October, new OSECHI hors d’oeuvre and HONKAKU CHUKA horsd’oeuvre products were well received. Unit sales of the ever-popular standard
OSECHI were also as buoyant as in previous years, translating into historicalhighs for both unit sales and revenue.
■Top Seller Takasa Nidanju■New！HONKAKU CHUKA Hors d’Oeuvre

Unit sales■New！OSECHI Hors d’Oeuvre

41,000(+5.4% YoY)

Revenue¥660mn(+11.8% YoY)

13

Evolution of Kit Oisix
We have beefed up our Premium Jitan Service to support the significantly
larger number of women in work for whom time is tighter than ever.

■What is Kit Oisix?

14Evolution of Kit Oisix : Subscriber No. Trends
Kit subscriber numbers have continued to rise thanks to thedevelopment of new menus and the success of Collabo Kits, reaching
47,000 during Q3, up 46.3% since the end of FY3/2016.
■ Even further evolution of Kit Oisix

Chef Menus

QUICK 10Series+46.3% YoY

47,000No. Subscribers

47,39044,29045,000To mark the 3rd
anniversary of Kit Oisix,
we have intensified
40,000collaborations withMichelin star chefs,
famous restaurants and35,000
food researchers
Series of recipes thatmean a main and aside can be cooked inhalf the Kit Oisix
normal time of 20
minutes.

37,82732,381

30,00027,48825,00022,48019,97820,000Collabo Kits

Beefing up of Kits
through collaborative
15,000affiliation with events
such as Halloween,
characters and regional
10,000
bodies, etc.

1Q

2Q

3Q

FY3/2016

4Q

1Q

2Q

3Q

FY3/2017

15

Evolution of Kit Oisix – Midnight Diner x Oisix
Under the supervision of Nami Iijima, launched Collabo Kits for Yakiniku
Teishoku and Tonjiru soup, to enable our customers to enjoy dishes thatfeature in the movie Midnight Diner, in the comfort of their homes.

■Tonjiru soup kits broke the record for single-item unit sales in a week! (approx. 1,300 kits sold [average500]). Both products were so successful that we plan to make them available again.
Cumulative unit sales
Tonjiru Kits

2,345

Yakiniku Teishoku Kits

3,134
16

FY3/2017 Strategy & Action① Evolution of Oisix.com② Brand Strengthening③ Food x Healthcare④ Business Affiliations and M&A17

Report on result of TOKYO HARVEST 2016TOKYO HARVEST 2016. Done! Professionals from many different areas ofexpertise provided a wealth of content that attracted approx. 40,000 visitors toour event which was covered by 37 media companies (+17 YoY).

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Shop in Shop
Renewal of 19 existing Shop in Shops completed. During Q3 several new stores
opened, including those in Queen’s Isetan Motoyawata, Tachikawa and Hibarigaoka
stores, bringing the total to 31.
■Sales of Kit Oisix begun at Queen’s Isetan Shinagawa Store■No. Shop in Shops

31
shops30252520■Queen’s Isetan Hibarigaoka Store■Queen’s Isetan Honhacho Store 151050
Q4 FY3/2016
2016年3月期4Q

Q3 FY3/2017
2017年3月期3Q

19

FY3/2017 Strategy & Action① Evolution of Oisix.com② Brand Strengthening③ Food x Healthcare④ Regarding Management Integration
20

Umami Diet Research Laboratory
Tests began after successful recruitment of Umami Diet Kit monitors. Resulted insome change in monitors’ sense of taste and weight loss.
■1200 people applied for 100 places!

■Physicians conducted sense of taste tests
Liquid umami drops of of different concentration wereplaced on various parts of the tongue to measure monitors’
taste response (if any). Many participants also lost weight.

■Details

Umami Diet Kits, worth around ¥20,000, wereprovided for a two week course (week days only
= 10 days). Taste tests, weight checks and stateof health questionnaires were completed at thebeginning, during, at the end, and four weeks
after the course. Where possible, participants
underwent sense of taste tests with a physician.

21

FY3/2017 Strategy & Action① Evolution of Oisix.com② Brand Strengthening③ Food x Healthcare④ Business Affiliations and M&A22

Discussions underway towards establishment ofJV with Isetan Mitsukoshi Holdings.
From contractor business centered around fulfillment to also committing to the sellside as a JV owner and partner.
■ What JV will look like
■Extensive product line-up■Product planning power■Oisix Online Marketing■Approx. 5mn Isetan Mitsukoshi Group
Card holders & Online subscribers■Isetan Mitsukoshi Brand Power

Isetan Mitsukoshi Products

Oisix Products■Oisix fulfillment

23Commencement of consultations with Daichi
wo Mamoru Kai towards merger

We’re all about food×We’re all about farmersTogether we’ll be all about resolving society’sproblems by multiplying Food and Business
23 Feb 2017 Stock Swap Approval – General Shareholders’ Meeting (Daichi wo Mamoru Kai)
27 Feb Stock Swap Approval – General Shareholders’ Meeting (Oisix)
31 Mar Effective Date of Stock Swap
In accordance with initial plans, preparatory committees have been set up to begin concrete
discussions towards the merger. Already, regular departmental sub-meetings are being held anddeliberations at the grassroots level are going well with staff at both companies communicating.
243

FY3/2017 Q3Tokushimaru Inc.
Activities Overview

25Number of Operational Vehicles
New business from new and existing partner supermarkets has been trending
well, resulting in an increase of 81 vehicles (mobile supermarkets) since theend of FY3/2016. Some new vehicles carry not only food but also clothing.
(No. Vehicles)
200

189

180

168

160

145

140
120

108
92

100

72

80
60

50

40

2720

3

456

1Q

2Q

3Q

4Q

679912

1Q

2Q

3Q

4Q

1Q

34

180

FY3/2013

FY3/2014

2Q

3Q

FY3/2015

4Q

1Q

2Q

3Q

FY3/2016

4Q

1Q

2Q

3Q

FY3/2017

26

Total Transaction Value
FY3/2017 Q3 Total Transaction Value was ¥1.02bn(99.6% growth since end FY3/2016)
(¥mn)
1200

1,0221000852800698600

5124384003142322000

Q1
1Q

Q2
2Q

Q3
3Q
FY3/2016

Q4
4Q

Q1
1Q

Q2
2Q

Q3
3Q

FY3/2017

2728