FY2021/3 3Q Results
Explanatory Materials

Oisix ra daichi
2021.2.10

Farm for Tomorrow, Table for Tomorrow
We provide services that enable a better food life
for more people.
We evolve continuously where good farmers are
rewarded and proud.
We realize a society that deliver a sustainable
framework that links farm and table.

We solve social issues related to food throughbusiness approaches.
We create and expand Tomorrow's Food.
1

Table of Contents
1. FY2021/3 3Q Achievements

1-1. Consolidated Financial Results
1-2. Business Segment Results
1-3. Results Forecast Revisions
2. Topics
2-1. Business Topics

2-2. Social activities under COVID-19 circumstances
2-3. ESG Topics■ APPENDIX・DATA SHEET

2

Table of Contents
1. FY2021/3 3Q Achievements

1-1. Consolidated Financial Results
1-2. Business Segment Results
1-3. Results Forecast Revisions
2. Topics
2-1. Business Topics

2-2. Social activities under COVID-19 circumstances
2-3. ESG Topics■ APPENDIX・DATA SHEET

3

1-1. Consolidated Financial Results

4Special factor in comparison withthe same period of the previous year

【Consolidation of Purple Carrot】✓ Purple Carrot, a U.S. meal-kit home delivery service specialized in vegan, became a subsidiaryin Apr.2019. Recognition of sales, profits/losses and goodwill began in FY2020/3 3Q.
✓ Full-year recognition in consolidated reports this fiscal year versus half-year (3Q/4Q) last year.
✓ Compared to the previous term, the Purple Carrot result will be added in 1H.
Fiscal Year

Consolidated
periodPrevious
fiscal year
(FY2020/3)

half-year(3Q/4Q)

This fiscal year
(FY2021/3)

Full-year

1Q

2Q

3Q

4Q

From FY2020/3 3Q
Start of consolidation*Due to the difference in fiscal year-ends, consolidated results are delayed by 3 months(3Q is consolidated from Oct. to Dec.).
5

Executive summary
ーFY2021/3 3Q Results
Sales✓Whilst there have been signs of stabilization in home delivery demand versus 1H,
3Q sales continued to rise on steady growth in subscriptions and ARPU.
✓ Led by Oisix, total subscriptions for the three brands in 3Q increased by roughly 10,000
as new subscriber acquisitions continued to be strong and churn remained constrained.

✓ ARPU increased 7-15% YoY on expanded stay-at-home needs vis-à-vis measures
to contain the third Covid wave as well as strong sales of high-priced items
such as Osechi and Christmas cakes✓ The overseas home delivery businesses – both at Purple Carrot and in Hong Kong,saw maintenance of 3Q sales.

✓ Real brick-and-mortar businesses, such as nursery school wholesale,
saw sales recovery to near year-earlier levels.

Profits✓ Marginal profit margins continued to improve in 3Q reflecting higher sales driven profitsand enhanced logistical efficiencies stemming from higher ARPU.
✓ The 1H accumulation of unspent sales promotional expenses continued in 3Q.
A large-scale subscriber acquisition promotion using such unspent funds
is planned in spring, however.

6

FY2021/3 3Q Highlights
Sales：Whilst there has been signs of stabilization in spiking home delivery demand,
3Q subscriptions and ARPU saw YoY growth.
Income：Profit margins improved on increased sales/ARPU as wellas the continued accumulation of unimplemented sales promotion expenses.

Sales

74.79bn yen（YoYOperating
Income+43％）

6.13bn yen（YoY+284％）EBITDA

7.19bn yen
（YoY

Net
incomeAttributable toowners of theparent+202％）

3.90bn yen（YoY+460％）
7

Consolidated Results Overview
Strong YoY growth owing to a near 10,000 increase in new subscription
for the 3 home delivery brands and robust sales of high-priced items
during the New Year holidays

Sales

EBITDA

74.79（YoY

bn yenOperating Income

7.19

bn yen

+43％）

（YoY

bn yen+202％）（YoY+284％）

7.19

74.79

48.90

6.13

6.13

52.42

30.00
2.88

2.38

2.26

1.59

1.28
0.69
FY
2018/33Q

FY
2019/33Q

FY
2020/33Q

FY
2021/33計

FY
2018/33Q

FY
2019/33Q

FY
2020/33Q

FY
2021/33Q

FY
2018/33Q

FY
2019/33Q

FY
2020/33Q

FY
2021/3
3Q*For the purposes of like-for-like vs Target comparisons, one extra month of Radish
Boya data (March 2018) was deducted from FY 3/2019 data.

8

YoY : Sales
Sales （bn yen）
2

Sales
increase:
Other

About
1.4

About
15.6

52.42
1

About
5.4

3

74.79

１ Sales increase(3 home delivery brands): about15.6bn yen
・Increase in ARPU

PurpleCarrotConsolidation：about8.8bn yen

・Increase in subscribers ：about6.8bn yen

2 Sales increase: Other：about1.4bn yen

Sales increase:
3 home delivery
brands・EC support/Hong Kong ：about1.7bn yen
・Kindergarten wholesale ：about▲0.3bn yen
Etc.,

３ Purple Carrot Consolidation：about5.4bn yen
FY2020/3
3Q

FY2021/3
3Q

Compared to the previous term,
the Purple Carrot result will be added in 1H.
(See page 3 for details)

9

YoY : EBITDA
１ Profits increase:(3 home delivery brands)：about4.3bn yen

EBITDA（bn yen）
３

Profitsincrease:Other・Increase in ARPU
：about 2.59bn yen
・Increase in subscribers ：about 1.8bn yen
About
0.2

1

Profits increase:
3 home delivery
brands

About
0.7

４

2 Oisix New
About
4.3

About
0.7

PurpleCarrotConsolidat
ion

About
1.1

7.19

2 Oisix New promotional

expenses unused：about0.7bn yen

５

３ Profits increase(Other)：about0.２bn yen

fixed
costs
increase

・EC support/Hong Kong：about0.2bn yen

４ Purple Carrot Consolidation：about0.7bn yen

promotional
expenses
unused・Return to profitability for the first time

2.38

・Compared to the previous term,
the Purple Carrot result will be added in 1H.
(See page 3 for details)
・Includes earn-out costs due to strong performance

FY2020/3
3Q

FY2021/3
3Q

5 Companywide fixed costs
increase：about1.1bn yen
・Costs for COVID-19
・Costs for Listing to First Section of the TSE・Costs for labor due to business expansion Etc.,

10

Business segment Results
Sales

Oisix

Segment profit

37.03bn yen 7.01bn yen(YoY +40％)(YoY +115％)

Overview
・Subscribers increased by roughly 10,000
reflecting our ability to implement new
subscriber acquisition activities as per
usual.
・ARPU increased by about 15%YoY

Daichi

RadishBoya

Otherbusiness

10.76bn yen 2.16bn yen(YoY +36％)(YoY +55％)

13.65bn yen 2.44bn yen(YoY +20％)(YoY +22%)

13.60bn yen 1.59bn yen(YoY +113％)(YoY +144％)

・A good balance between new acquisitions
and churn has allowed us to maintain aslight increase in 3Q subscriptions.
・ARPU increased by about 10%YoY

・Subscribers down slightly as priority
continues to be placed on servicequality enhancement.
・ARPU increased by about 10%YoY
・EC support business and overseas business are
growing steadily.
・rick-and-mortar (real) businesses, such as nurseryschool wholesale, saw sales recovery to near yearearlier levels.
・Purple Carrot’s 1H sales/profits were consolidated
providing a boost to earnings. Business there hasremained robust in 3Q.

11

Business segment Results Overview
Sales

74.79
Other

bn yenMarginal profit

11.8％

Segment costs

Total segment costs

RadishBoya

Daichi

Marginal profit Segment costs

17.9％

61.57bn yen

Marginal profit Segment costs

20.1％

Total
Marginal profit

13.22
Marginal profit Segment costs

Oisix

18.9％

Companywide fixed costs,
Goodwill etc

bn yen7.09bn yen
Operating Income

6.13

bn yen12

1-2. Results on Business segment

13

Overview of Business Segments① Domestic Delivery business（Three major brands）
Oisix
Daichi
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business
Real Retail Business14

Domestic Delivery business（Three major brands）

Overview of Business Segments

Domestic Delivery business（Other）

Other Business① 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 Other Business
Overseas Business
Real Retail Business15

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Other Business

Subscribers：Increase in subscrbers of roughly 10,000 in 3Q reflects not
only healthy new subscriber acquisitions, but continued declines in the churn rate.
ARPU：Increased roughly 15% YoY on strong sales of such items as collaborative kits
and seasonal New Year holiday products.

No. of subscribers

ARPU※

285,168

13,106yen（YoY +24％）（YoY +15％）

FY2020/3

285,168

FY2021/3

274,929
252,303

13,822

239,837
230,393
226,187
221,612

12,986

202,427
193,461
186,929
177,606

13,106

11,745
11,379

11,095
10,634FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2020/3

FY2020/3

FY2020/3

FY2020/3

FY2021/3

FY2021/3

FY2021/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

*ARPU=Average Monthly Revenue Per User

4Q

16

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Prolonged stay-at-home practices by COVID-19 has led
to the emergence of “getting tired of eating at home” as a problem.
Offering time savings and premium cooking experiences, subscriptions
to Kit Oisix Courses have increased substantially.

No. of meal kit course subscribers

Other Business◆The number of meals sold by Kit Oisix
Dec. 2020(Includes Oisix subscribers)

198,63070mn over（YoY +41％）

Rapid growth in responseto the increase in doubleincome households andthe need for meals athome at COVID-19

198,630
185,875

160,112150,093
141,292
134,895
128,5512013

LaunchFY13/3

FY14/3

FY15/3

FY16/3

FY17/3

FY18/3

FY19/3

FY20/3✔ Cumulative sales exceeded

111,169

70 min meals

94,841
87,232
79,674FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2020/3

FY2020/3

FY2020/3

FY2020/3

FY2021/3

FY2021/3

FY2021/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

17

FY21/3

Domestic Delivery business（Three major brands）

Oisix Topics-Kit Oisix/Vegan Kit

Domestic Delivery business（Other）

Other Business

The second collaborative Disney Kit, like the first, was well received with lotsof favorable customer feedback. On heightened health awareness, demand for
Kit Oisix using only vegan ingredients also saw strong growth.

Disney Kit✔

To create the future of children's food,
we developed a product jointly developedwith Disney in 3Q.

◆Family-made Kit Oisix＜Frozen＞Snow stew in the ice world

Vegan Kit✔

Increased demand for vegan kits due to reduced
outing opportunities and increased awareness ofhealthy eating habits◆<Supervised by cook Emi Sugiyama>
Tomato cream stew with plenty of mushrooms

18

Domestic Delivery business（Three major brands）

Oisix Topics-“Chanto” Oisix

Domestic Delivery business（Other）

Other BusinessWith time spent at home increasing, desire for more sophisticated cooking
is expanding. Subscriptions for CHANTO Oisix, which provides 5-days ofingredients and menus that help eliminate food waste, is growing.

Popular Life information magazine”Lettuce Club” Collaboration

Handmade “Osechi” set✔

✔

Supervised by a popular life information
magazine, we provide recipes for smart
cut-out techniques and the use ofvegetables that tend to be left over.

5 days of ingredientsand recipes
for using up 1 cabbage

We respond to the needs of customers who wantto take on the challenge of making “Osechi”, which
they have never had the opportunity to make.

13 ingredients and recipes

19Domestic Delivery business（Three major brands）

Oisix Topics-Restaurant support

Domestic Delivery business（Other）

Other BusinessWith announcement of another state-of-emergency, initiatives for “Home Bundle
Restaurants” have been strengthened. We supply not only food ingredients,
but pots/pans and other cooking utensils for a “restaurant experience.”
Delivery set including special
equipment

Restaurant support Campaign✔

✔

We distribute coupons to those whopurchase our restaurant products.
Promote restaurant menu sales✔

We also solicit support comments andfoster a mindset that "eating a restaurant
menu at home will help“.

Delivered as a set with special equipment.
A plan to enjoy a restaurant experience whilestaying at home
Motsunabe & Vegetable Set＋
・ Pot
・ Ladle・ Non-woven apron
・ Store menu table3 kinds of hamburger steakcomparison set＋
・ Iron plate
・ Wooden plate
・ Store menu table
20

Oisix Topics
ーSayama Station

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

Other BusinessAs scheduled, test operations were completed in 3Q and normal operations werecommenced in January. Shipping operations running without major trouble.

Status of shipping capacity✔

After 3Q test operation, normal operation started in January✔

Due to the effect of test operation, it can be
operated without major shipping troubles.

✔

On the other hand, shipping capacity increased 50% andsystems have been put in place to handle sudden surges
in demand should COVID-19 reaccelerate.
Initial investment andincrease in logistics costs① Initial investment ：About 50 million（Depreciation period: 7 to 10 years planned）② Increase in logistics costs：About 15 million/month（during 4Q of this term to 3Q of next term）
21

Domestic Delivery business（Three major brands）(Re-posting)Future shipping system

Domestic Delivery business（Other）

Other Business

Oisix's most important management issue, the increase in shipping capacity,
is expected to be resolved by the operation of the Sayama station from October.
Apr.2020

Oct.2020

Oct.2021

NOW

Logistics
Base

Shipping
Capacity

Exceeding logistics capacity

Status/Measures

・Launch of Sakutto Oisix,a small SKU service
・Expansion of satellite center⇒Resuming new
acquisitions gradually fromthe end of April

・Current Ebina Station＋
・Fujisawa
・Zama+10% increasein shipping capacity

・With the start of operationof the Sayama station,
there was a goal to solve
the capacity problem

・Actively resume
new acquisitions
・Current Ebina Station
・Fujisawa
・Zama+

・Sayama

Up to +50% increasein shipping capacity*Covers capacity up to
the start of operation of
the Shin-Ebina Station

・Large increase in capacity
due to operationof Shin-Ebina Station

Shin-Ebina Station（※Fujisawa and Sayama will beclosed after Oct. 2021.
Zama is dedicatedto shipping radish）

Maximum shipping
capacity +200% increase22

Domestic Delivery business（Three major brands）

Daichi KPIDomestic Delivery business（Other）

Other Business

Subscribers：A good balance between new acquisitions and churnhas allowed us to maintain a slight increase in 3Q subscriptions.
ARPU：Increase roughly 10% YoY reflecting higher demand as customers refrained
from hometown travels and elected to stay home during New Year holidays.

No. of subscribers

ARPU※

44,99824,356yen（YoY +21%）（YoY +9％）
FY2020/3

44,99844,08644,87843,77543,94142,07140,18938,51737,532
37,12137,127

FY2021/3

27,117

24,12824,35622,391

21,604

20,821
21,159FY2019/3 FY2019/3 FY2019/3 FY2019/3 FY2020/3 FY2020/3 FY2020/3 FY2020/3 FY2021/3 FY2021/3 FY2021/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

2Q

3Q

4Q

3Q

*ARPU=Average Monthly Revenue Per User

23

Daichi Topics

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

Other Business

Promoting product development to meet the needs of two-person senior
households. Also looking to expand fermented items whose demand has
increased with COVID-19.
Products for seniors livingwith two people✔ The seasonal fish series launchedin October is popular with seniors
who want to have a healthy diet.

✔ By introducing new items frequently,
Contributes to overall LTV increase

Expansion of fermented items✔ New product "Lactic Acid Bacteria Drink

Born from Domestic Soybeans" is off to agood start selling more than 20,000 bottles
in roughly three months.

✔ In light of heightened health awareness by

COVID-19, we aim to expand the fermented
product line-up to meet growing needs.

24Domestic Delivery business（Three major brands）

Radish Boya KPI

Domestic Delivery business（Other）

Other Business

Subscribers：Subscriptions down slightly as priority continues
to be placed on service-quality enhancement.
ARPU：Increase roughly 7% YoY reflecting higher demand as customers refrained
from hometown travels and elected to stay home during New Year holidays.

ARPU※

No. of subscribers

61,51821,000yen（YoY +5%）（YoY +7％）
FY2020/3

74,24071,616FY2021/3

66,07061,82262,93561,51862,51561,00959,400 58,528
56,93523,18920,88421,00019,65918,202FY2019/3FY2019/3FY2019/3FY2019/3FY2020/3FY2020/3 FY2020/3FY2020/3FY2021/3FY2021/3FY2021/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

18,621
17,926

2Q

3Q*ARPU=Average Monthly Revenue Per User

4Q

25

Radish Boya Topics

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

Other Business

The churn rate for Pallet, a major subscription course, declined due to negative
improvement measures. In addition, the number of subscription courses, such as meatand fish, increased, contributing to an overall improvement in LTV

Palette reduction of churnrate✔

Reduced churn rate by
implementing measures such as"changing vegetable combination
rules" and "reflecting difficult-touse and easy-to-use vegetables inplanting plans"

Increased contracts for meatand fish subscription courses✔ Due to specification changes based on

customer feedback, the number ofsubscribers who make regular contracts inaddition to Palette is increasing.

✔ Sales promotion utilizing the resources ofsales staff who acquired new subscribers is
also strong◆<Palette> Assorted boxes of seasonal vegetables

26

Domestic Delivery business（Three major brands）

Domestic Delivery business Topics

Domestic Delivery business（Other）-Year-end and New Year product sales

Other BusinessDuo to COVID-19, as customers refrained from hometown travels
during New Year holidays, time spent at home increased. Helped by robust
demand for seasonal New Year holiday products, sales rose 40% YoY.
Other year-end and New
Year products

Osechi✔ Due to measures such as strengthening

advance reservations and selling pairs tohome + parents' home, sales will end earlier
than originally planned✔ Due to the influence of stay homes,

purchases of high-priced year-end and New
Year products increased.
Sales of hot pots and seafood are strong.

The Company as a whole achieved
seasonal year-end product sales ofover +40% YoY.
27

Domestic Delivery business（Three major brands）

Overview of Business Segments

Domestic Delivery business（Other）

Other Business① 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 Other Business
Overseas Business
Real Retail Business28

Domestic Delivery business（Three major brands）

EC support

Domestic Delivery business（Other）

Other Business

Subscriptions have continued to increase on Covid driven demand for homedelivery. Similar to the domestic Home Delivery Business, ARPU,
whilst showing signs of stabilizing, has been YoY positive.
ISETAN DOOR

d-meal kit

・・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.

✔ Subscribers grew about + 10% QoQ✔ Subscribers grew about + 20% QoQ✔ Home delivery needs are gradually✔ New acquisitions from docomo owned

settling down, but sales of Christmas
products increased by 140% YoY.

media and new acquisitions throughtelework support projects are strong.

29Domestic Delivery business（Three major brands）

Tokushimaru(subsidiary)

Domestic Delivery business（Other）

Other Business

Both transaction value and vehicles in operation saw robust growth.
COVID-19 driven demand for mobile sales has remained high and we havecontinued to add over 50 new vehicles each quarter.
Development Scale

The 1H value of circulation

12.14

Number of affiliatedsupermarkets

bn yen（YoY +55%）

12.14

140

Number of vehicles
in operation

671

7.83

671

5.85
4.05

2.57

473
362

288
205
FY2017/3

FY2018/3

FY2019/3

FY2020/3

FY2021/3

3Q

3Q

3Q

3Q

3Q

30

Domestic Delivery business（Three major brands）

Overview of Business Segments

Domestic Delivery business（Other）

Other Business① 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 Other Business
Overseas Business
Real Retail Business31

Purple Carrot(U.S.)

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

Domestic Delivery business（Other）

Other Business

Whilst Covid driven growth in subscriptions is beginning to stabilize, we havemaintained quarterly profitability. With next fiscal year in mind, we aim to position
ourselves for scale expansion and advance our intrinsic earnings power.

Business status

Business Topics✔ Similar to 1H,

quarterly profit was achieved in 3Q (Jul.~Sep).

✔ Although the growth of subscribers

is gradually settling down,
churn has been suppressed more than
expected and the net increase continues.

✔ LTV increased by about + 10% YoY✔ Purple Carrot's Vegan Meal Kit Contributes
to Cholesterol and Weight Loss*✔ Clinically proven to contribute to a healthy

diet in addition to the convenience of mealkits

◆Changes in sales over 2 Fiscal Year
YoY

＄65mn

Double＄33mn

FY2018/12
3Q

FY2019/12
3Q

FY2020/12
3Q*Release Title：Purple Carrot Meal Kits Clinically Proven To Reduce
Cholesterol And Body Weight In A Groundbreaking Study
Report：The American Heart Association's Annual Meeting32

Domestic Delivery business（Three major brands）

Hong Kong/Shanghai

Domestic Delivery business（Other）

Other BusinessHong Kong：Whilst the effects of Covid are settling down,
we expect continued profitability this year.
Via service/product refinement, we aim to actively grow and secure sales/profit.
Shanghai：Developing new subscriber acquisition programs to attract new members.

■ Hong Kong
・・Launched the service in 2009. Crossborder delivery of Japanese products✔

Whilst the effects of Covid are settling down, we
expect continued profitability this year.

✔ LTV has benefited from implementation of the"$0 Pass" subscription service which borrows
from Oisix’s "Prime Pass" program.

■ Shanghai
・・Launched the service in 2017. Deliverproducts that meet Oisix product standards
by local procurement✔ Collaborate with local cooking classes and chefs
to further increase the value of the meal kit
service✔ Building a service that can be used continuously
to expand the meal kit business33

Domestic Delivery business（Three major brands）

Real Retail Business

Domestic Delivery business（Other）

Other Business

SinS：As measures to generate repeat purchases, we have implemented
weekly menu postings and digital advertisements.
Nursery School Wholesale：
Reflecting expansion of participating nursery schools, parent 3Q sales increased YoY. Profitability
improving with completion of the distribution warehouse relocation.

Shop in Shop

Nursery School Wholesale

Sales

0.64

Sales

0.66

bn yenbn yenNo. of shops

No. of trading
nursery school

158

429
0.73

0.59

0.64
0.55

0.66

0.56

0.58

0.31

FY2018/3

FY2019/3

FY2020/3

FY2021/3

FY2018/3

FY2019/3

FY2020/3

FY2021/3

3Q

3Q

3Q

3Q

3Q

3Q

3Q

3Q

34

1-3. Results Forecast Revisions

35

Highlights
of Results Forecast Revisions
The decline in subscriptions/ARPU has been limited relative to Octoberguidance. Given better visibility of COVID-19 impact
on real brick-and-mortar businesses, we have revised our full-year forecast.
Initialforecast

Previous
Forecast(Oct.)

Sales

78.00

90.00

bn yenbn yenEBITDA

4.40

6.40

bn yenbn yenOperating
Income3.00

5.00

bn yenbn yenNet income

1.20

2.50

bn yenbn yenAttributable toowners of theparentRevised forcast

Change%97.50bn yen+7.50bn yen+8.3%

8.00bn yen+1.60bn yen +25.0%

6.50bn yen+1.50bn yen +30.0%

4.00bn yen+1.50bn yen +60.0%
36Outlook for FY2021/3
Increase in subscriptions up to 3Q is assumed to continue to contribute to sales/profits.
The CVID-19 driven tail wind boosting ARPU, however, is assumed to weaken.
In 4Q, we assume new PR spending, higher logistical costs with full-scale operations
at Sayama Station, and higher recruitment costs.
Revised forcast

Sales

EBITDA
Operating
IncomeNet income
Attributable toowners of theparent97.50
bn yen8.00
bn yen6.50
bn yen4.00
bn yenResults as of 3Q

4Q Outlook(Achievement Rate)

74.79bn yen（ 77％）

7.19bn yen（ 90％）

6.13bn yen（ 94％）

3.90bn yen（ 98％）

Sales＋ Sales increase due to the number ofsubscribers increases

that saw a downward trend in 1H＋ Affiliates
earnings by COVID-19, are now seeing recovery.

－ Possibility that ARPU will gradually decrease
Costs
Investing large-scale upfront PR✔ Oisix:
expenses for next season and unspended
PR expenses in the 1H.

Daichi/Radishbo-ya: Investing PR expenses✔ for up-front investment for the next FY.

✔ Increase in logistics costs due to theoperation of Sayama station. (4Q)

✔ Expenses for strengthening recruitment inline with business expansion37Forecast revision by segment
Previous Forecast（Oct.）

Revised forcast

Segment profit

Sales

Home Delivery Business

Oisix（Exclude the impact
of goodwill amortization）

45.00bn yen 7.00bn yen

Segment profit
Sales

49.00bn yen 8.00bn yen(change rate +9％)

Daichi12.00bn yen 2.45bn yen
16.50bn yen 3.00bn yen
16.50bn yen 1.40bn yen

+14％)

+13％)

(change rate

+6％)17.00bn yen 3.00bn yen(change rate

Other
Business(change rate

13.50bn yen 2.60bn yen(change rate

RadishBoya（Exclude the impact
of goodwill amortization）+3％)(change rate

±０％)18.00bn yen 1.80bn yen(change rate

+9％)(change rate

+29％)

38

＊From this term, the definition of the number ofmembers and ARPU has been changed to reflect
more appropriate business conditions.
Please refer to page 76 for figures for the past
two periods

Forecast revision
by subscribers
Outlook of subscribers
FY2019/3

FY2021/3
RevisedFY2020/3

previous

406,000（+72,000）
334,000
306,000
56,935

Radish Boya

+4,000Daichi62,93537,127

RadishBoya
61,000389,000
60,000Daichi45,00044,000Oisix
300,000

285,000+8,00040,189Oisix
202,427

239,837+60,000

39

Table of Contents
1. FY2021/3 3Q Achievements

1-1. Consolidated Financial Results
1-2. Business Segment Results
1-3. Results Forecast Revisions
2. Topics
2-1. Business Topics

2-2. Social activities under COVID-19 circumstances
2-3. ESG Topics■ APPENDIX・DATA SHEET40

2-1. Business Topics

41

Business Topics① Capital and business alliancewith AP Holdings Co., Ltd./a consolidated subsidiaryof Seven Work Co., Ltd.
② Repurchase of shares③ Progress of food tech business

42

Capital and Business alliance formed with APHD/
Made Seven Work a consolidated subsidiary

Capital and business alliance formed with AP Holdings Co., Ltd. (APHD).
Seven Work Co., Ltd., a marine products wholesale subsidiary of APHD,
became a consolidated subsidiary via share transfer.

Oisix ra daichi

1

AP Holdings

Capital andBusiness alliance

1 Capital and business alliance
formed with APHD
(Investment:2/28)✓ About ¥240 million was invested byunderwriting a part of APHD's
third-party allotment of capital.

2 Made Seven Work
2

Consolidated
subsidiary（Own 51％）a consolidated subsidiary

2 100％ → 49％

Seven Work(Consolidated :3/31)✓ Made Seven Work Co., Ltd.,,a subsidiary of APHD and awholesaler of marine products,
a consolidated subsidiary bytransferring 51% of shares✓ Company name is also scheduled
to be changed to"Toyosu Gyosho Sanchoku Ichiba"
43

Business synergies
We aim to create business synergies with both companies at an early stage,
such as strengthening the marine products category by utilizing the unique
distribution network and product proposal capabilities of "Toyosu Gyosho
Sanchoku Ichiba“ (Seven Work)"
AP Holdings

Oisix ra daichi・Direct transactions with producers
・Manufacturing and processing factory×・About 380,000 subscription members
・Restaurant support EC“Ouchi Restaurant"

・Brand power
・Production and distribution network ofingredients such as local chicken and fresh fish・Domestic and overseas 235 store network

Toyosu Gyosho Sanchoku Ichiba
・Unique procurement and distribution networkthat can be purchased from both "market"
and "direct delivery”
・Purchasing culture from the customer's perspective✔ Increase SKU / Propose high value products, reduce costsin our marine products category✔ Cost reduction through joint procurement of ingredients andjoint use of manufacturing and processing factories✔ Strengthening collaboration at “Ouchi Restaurants
44

Business Topics① Capital and business alliancewith AP Holdings Co., Ltd./a consolidated subsidiaryof Seven Work Co., Ltd.
② Repurchase of shares③ Progress of food tech business

45

Repurchase of shares
Implemented Repurchase of shares of roughly 4.5 bn yen in January.
As we look to business expansion, treasury stock will be used to accelerate
capital alliances and/or M&A activities.

Details of Share Repurchase◆Total number of shares repurchased：1,465,700 shares(3.86% of the total issued shares (excluding treasury shares))◆Total repurchase price：About 4.5 bn yen◆Reason for Share Repurchase：We considers the policy for the disposal of acquired treasury stockis the use for M&A or business alliances.

46

Business Topics① Capital and business alliancewith AP Holdings Co., Ltd./a consolidated subsidiaryof Seven Work Co., Ltd.
② Repurchase of shares③ Progress of food tech business47

Future Food Fund
Established as Japan's first CVC specializing in Food Tech, and completed raising
2 billion funds from LP14 companies. A wide range of investments such as New
Food/ Agritech including investees and overseas start-up companies

Food Tech Startup

Japan's “First" Food Techspecialized CVC

Invest in various startups
both domestically and internationally
Food Tech/New Food

Agriculture Tech

Completed 2 billion
financing from 14 LPs
48

Features of the Food Tech
Ecosystem
Utilizing our experience at the time of our founding, we will build an ecosystem of food techthat provides a wide range of support by making maximum use of the platforms of operatingcompanies 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

Infrastructure49

2-2. Social activities
under COVID-19 circumstances50

Social activities-Healthcare worker support“We Support,” which is a food support platform for medical professionals, has
supplied a total of 440,000 foods Provided to medical institutions, the total
amount of support exceeded 0.42 bn yen.
Voices from supported
medical institutions

・・A platform that connects medical
institutions with food support companies

Support achievement
About◆Total amountof support：◆Total amount of
support meals：

0.42bn yen
About440,000meals◆Support company：

104◆Support medical
institution：

80<surprise Christmas presents!>
At every workplace I saw
scenes where smiles
overflowed. We also posted
your good-luck card on thehospital bulletin board forviewing by all staff.

<Delivering our “Osechi” to hospitals.>“The Osechi taste was justright, delicious, and was wellreceived by all. The grandeur
was much greater than anyone
expected to everyone’s surprise.
Thank you!”*As of 5 Feb. 202051

Social activities-Producer / Local support
Supporting sales of "Chef Purveyor Vegetables" for hotels/restaurants where
demand has evaporated. Measures implemented to support local governmentswith the B-1 Grand Prix collaboration kit being one example.

【For Producer】【For Local support】

Support sales of"chef purveyor vegetables"✔

Support sales of colorful vegetables
shipped to restaurants and hotels✔

Delivered as a meal kit or menu set,
contributing to reducing food loss
in the fields

B-1 Grand Prix
collaboration Kit✔

Local gourmet Kit Oisix is ​onsale to support the
postponement of the town
revitalization event "B-1
Grand Prix"▲Hachinohe
rice cracker soup

Collaboration kit
with high school students in Hokkaido✔ We received a proposal
from a high school studentin Hokkaido to develop Kit
Oisix for "Katsumeshi", asoul food in Urakawa,and sold it.

▲Urakawa Katsume▲カラフル野菜のグリルサラダ

52

2-3. ESG Topics

53

(Re-posting)
New ORD Green Shift 5 Measures
We have formulated a new green-shift strategy aimed at reducing greenhousegases and plastics use. Based on five core initiatives,
we look to implementation next.
New ORD Green Shift 5 Measures54

Progress of new ORD
green shift measures
Goal

Current progress

1

Introduction of
our original green
standard

Within the next five years,
we aim to reduceby one-half the greenhousegas emissions that relate
to our agricultural production.

・Under investigationof greenhouse gas emissions

2

Start of green energy
demonstration
experimentfor delivery vehicles

Reducing greenhouse gas emissions
via conversion of in-house delivery
vehicles to EV

・Preparing for the introductionof EV vehicles
with Tokushimaru sales vehicles

3

Further greeningof productpackagingSwitching our product packaging
to environmentally friendly materials
to over 50% within the next 5 years

・Started investigation and study
for changing materials such asouter bag and cushioning materialof Kit Oisix

4

Strengthening
conventional
efforts to reducefood loss

Eliminate food loss
for each home delivery brand・Examination of methods
for zeroization

5

Promotionof salesof up-cycle foods

Building Oisix's
own up-cycle sales site

・Started trial production of upcycle products・Investing in up-cycle companies/
purchasing products throughFuture Food Fund55

IR Excellent Company Encouragement Award/
Consumer-oriented management
best practices awards

Recipient of the "IR Excellent Company Promotion Award" for small and medium-sizedcompanies actively engaged in IR. Also received the "Excellence Award for Consumeroriented Management Practices" which recognizes superior consumer-oriented
management practices.

IR Excellent Company
Promotion Award✔ We were recognized for the clarity of our
financial results reporting,the aggressiveness with which we
provide English disclosure, and thecontent of investor dialogue.

Excellence Award
for Consumer-oriented
Management Practices✔ We were recognized for our efforts to help
solve social issues such as time-saving
needs, health, and the environment asthey relate to food, and for achievements
in our consumer perspective driven Home
Delivery Business.
56

Supporting the developmentof depopulated areas
Selling products made in collaboration with the "Home of the Art Festival of the Earth"which engages in regional revitalization through the power of art. Returning a portion of
profits to support the sustainable development of depopulated areas.
Organic African Louis Bostee
is a collaborative product of the"Home of the Art Festival of the Earth."✔ Supporting efforts to solve problems

in depopulated areas via pairing of designs
by artists from the Art Festival of the Earthwith our sales capabilities.

Art Festival of the Earth
Echigo-Tsumari Art Triennale
international art festival aimed✔ Aat triennial‘disseminating information’ aboutand ‘invigorating’ Echigo-Tsumari.

57

APPENDIX・DATA SHEET

58

Corporate Overview

Name：

Oisix ra daichi Inc.

Location：

Shinagawa-ku, Tokyo

Established：

June 2000

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

Employees：

860 (consolidated), as of the end of March 2020

59

Overview of Affiliates
Consolidated subsidiaries
Tokushi-maru Inc.

Develops alliances with supermarkets in the mobile supermarket business;
provides expertise to sales partners.

Fruits Basket Co., Ltd.

Handles processing, product development, and sales,
for agricultural produce, including fruits and vegetables.

Karabiner Inc.

Develops and operates platform systems for EC sites; produces websites.

Crazy Kitchen Co., Ltd.

Handles catering, event production, and space production businesses.

Oisix Hong Kong Co.,Ltd.

Operates our businesses in Hong Kong under contract.

Oisix Shanghai Co., Ltd.

Operates the food products home delivery business in China.

Purple Carrot

Meal kit delivery service in the United States

Oisix Inc.

Overseas investment business

Future Food Fund Inc.

Investment business for food-related startup companies

Future Food Fund No.1
investment limited partnership

Investment business for food-related startup companies

Main Affiliates
Nihon Agri Inc.

Exports agricultural products.

DEAN & DELUCA

Lifestyle business through retail and restaurant businesses
60Trend in No. of Employees

860
735
680

421

163

179

FY2012FY2013192

FY2014210

FY2015FY2017/3

FY2018/3(Consolidated)

FY2019/3(Consolidated)

FY2020/3(Consolidated)

61

Main Business Risks
Effects of poor weather
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

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.

Effects of relationshipwith Yamato Transport Co., Ltd.

We operate our own logistics centers, where logistics functions such as

Most deliveries of the Group’s products to subscribers are handled byinspection, storage, sorting, and packing of our products are

Yamato Transport. While the Group strives to maintain a favorable ties

concentrated. For the most part, products under the Oisix brand areto Yamato while building relationships with alternative delivery services,shipped to customers through our logistics center located in the city of

due to current conditions in the logistics business, if the Yamato Group

Ebina, Kanagawa Prefecture. Those under the DWMK brand are shipped

were to demand a major increase in delivery fees or if transaction

through a center located in the city of Narashino, Chiba Prefecture. If a

volumes between us were to shrink, the resulting changes may affectnatural disaster, fire, or other cause were render either or both logistics

Group businesses and business results.

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.

62

Our Subscription Model
Expanding our business areas to include alliances and marketing support
for other companies based on subscription model strengths in our threehome 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 threebrands delivers products tailored to the lives and values of our customers.
Working mothers withsmall children

Mothers focusing on
the home and children

Senior women in twoperson households

Meals that can be boasted
without taking time

Self realization
through Cooking

Healthy daily living

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

ProfitCPA
recovery
periodPriceperpurchase

Profit LTV
Profitabledeliveries

0
Time
CPA

CPA: cost per acquisition
Profit LTV: lifetime acquisition value

Loss-making
deliveries
Subscribers

65

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

How toorder

Logistics
bases

Last OneMile

WEB mainlyWEB/
door-to-door sales

WEB mainly

WEB only

WEB/
Paper catalogs/
TEL

WEB/
Paper catalogs/
TEL

4 placein Kanagawa

4 placesin Hokkaido,
Tokyo, Kanagawa,
Osaka.

1 placein Chiba

Yamato trucks
approximately 99％

Our trucks
approximately 95％（area around
Logistics bases）

Our trucks
approximately 85％（area aroundmetropolitan area）
67

EC support
Utilizing the subscription know-how and assets that we have got
in the domestic food delivery business, which is our strength,
we develop the business of supporting other companies' EC

68

Tokushimaru
Offering mobile supermarkets for seniors and “shopping refugees” difficult
to approach via the Internet
Business model
Tokushimaru
Headquarters
Contractual fees
Royalties

Brands, expertise,
information provision

Regional supermarkets
Bases for supply of products

13％
Products

Product gross profits
30％
17％

Sales partners

In-person
sales

Owner-operators＋5 yen＋5 yenCustomers+10 yen rule69

Overseas Home Delivery
Hong Kong / Shanghai: Aim to establish services that meet the needs of local Chinese
consumers
U.S.: Utilize management know-how in food subscription model for Purple Carrot
U.S. Meal Kit Market*

Oisix Shanghai
the service in 2017.
✔ Started
Grasp the needs to establish$2.5

the subscription model for
Chinese customers

Billion
USD

2017

$9
Billion
USD
2025

Purple Carrot Business(U.S.)

Oisix Hong Kong✔
✔

Launched the service inHong Kong in 2009.
Cross-border delivery ofJapanese products
With the spread of coronavirus,

both users and sales aredramatically increasing×
expansion of vegan food x Japanese✔ Globalfood “Health Conscious Food” both in Asiaand the U.S.

✔ Recognize consolidated from FY2020/3 3Q* Hexa Research『Global Meal kit Delivery Service Market Size And Forecast,/ByType (Fresh Food, Process Food) And Trend Analysis, 2015 - 2025』

70

Shop in Shop
Setting up booths for individual brands in the produce sections of partner supermarkets
to sell produce and products that meet each brand’s standards

71Kindergarten wholesale
The kindergarten wholesale business was launched in FY2015. Based on the Omakase Boya systemthat makes it possible to order ingredients for student meals based on menus,
it provides support for kindergarten operations in both serving meals and nutrition.
Oisix ra daichi

Kindergarten

Omakase Boya system
for receiving orders from kindergartens

Producers

Ordering

Purchase◆Stable purchases of safe produce andprocessed food meeting strict standards◆A wide-ranging product lineup thateliminates the need for additional purchasing

Delivery on
Requested
date◆Full-time senior nutritionists develop uniquemenus for use by kindergartens; they also
respond to requests for nutritional
consultations.
◆Easy ordering using a simplified Web form
◆Simplified single supplier management72

Business Solutions
We propose B2B business solutions based on our safe, reliable products,
outstanding customer base, and expertise in subscription-based EC.

EC consulting
Solutions support basedon our expertise in repeat marketing,site user interface/user experience
improvements,
food logistics in three temperaturezones, securing new EC customers,
and omni-channel management

Ad Oisix:

Tavelty：

Periodic advertisements
delivered to subscribers

seasonal vegetablenovelty products

In addition to an EC site that boasts 1.2
million unique views per month, thisservice delivers advertising to about
400,000 households, including
subscribers to DWMK and Radish Boya.

We offer novelty products basedon our expertise in service,products, and delivery, establishedthrough more than 3 million
regular deliveries a year.

73

DATA SHEET：Results
Results
FY2019/3（mn yen）

Sales

1Q

2Q

3Q

FY2020/3

4Q

1Q

2Q

FY2021/3

3Q

4Q

1Q

2Q

3Q

16,853 31,720 48,906 64,026 16,265 32,552 52,425 71,040 23,132 47,567 74,790

Operating
Profit610 1,115 2,265 2,312

543

EBITDA808 1,513 2,882 3,154

755 1,348 2,381 3,595 2,419 4,679 7,198

537

270

Net income
Attributable toowners of theparent893 2,533 2,387

900 1,597 2,467 2,076 3,976 6,131

390

695

790 1,184 2,452 3,90074

DATA SHEET：Business Segment Result
Business Segment Result
FY2019/3（mn yen）

FY2020/3

FY2021/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Sales

6,863

13,76922,19029,6198,308

16,524

26,52235,82911,26523,04737,036

Marginal
profit

970

1,943

3,371

4,036

933

1,868

3,261

4,801

2,367

4,335

7,012

Sales

2,769

5,440

8,405

10,902

2,587

5,137

7,936

10,541

3,636

7,094

10,761Marginal
profit

479

960

1,536

1,989

457

885

1,397

1,889

724

1,368

2,160

Sales

5,811

9,926

14,34618,028

3,770

7,459

11,41014,980

4,721

9,083

13,653

Marginal
profit

1,030

1,765

2,657

3,342

688

1,273

2,001

2,667

899

1,626

2,449

Sales

1,482

2,755

4,198

5,793

1,663

3,529

6,383

9,497

3,601

8,522

13,600Marginal
profit

154

290

479

724

256

557

656

846

391

1,038

1,599

Companywide fixed
costs,
Goodwill etc

2,024

3,844

5,779

7,779

1,792

3,683

5,719

7,736

2,305

4,391

7,089

Oisix

Daichi

Radish Boya

OtherBusiness

75

Data Sheet：Main KPIKPI trend
FY2019/3
1Q
Subscribers(number)

Oisix

Daichi2Q

FY2020/3

3Q

4Q

1Q

2Q

FY2021/3

3Q

4Q

1Q

2Q

3Q

177,606 186,929 193,461 202,427 221,612 226,187 230,393 239,837 252,303 274,929 285,168

ARPU
（yen）

11,558

11,118

11,522

11,173

11,095

10,634

11,37911,745

13,822

12,986

13,106

Price/
purchase
（yen）

6,005

5,973

6,149

6,013

5,884

5,840

6,055

6,166

6,748

6,201

6,315

Purchase
Frequency(number)

1.92

1.86

1.87

1.86

1.89

1.82

1.88

1.90

2.05

2.09

2.08

Subscribers(number)

44,086

43,77542,07140,18938,51737,532

37,121

37,12743,94144,87844,998

ARPU（yen）

20,247

19,807

20,226

19,171

20,821

21,15922,391

21,604

27,117

24,12824,356

Price/
purchase
（yen）

7,899

8,121

8,573

8,046

8,195

8,292

8,732

8,508

9,234

8,610

9,000

Purchase
Frequency(number)

2.56

2.44

2.36

2.38

2.54

2.55

2.56

2.54

2.94

2.80

2.71

74,24071,616

66,07062,93561,00959,40058,52856,93562,51561,822

61,51817,15817,076

18,43917,401

18,202

17,926

19,65918,621

23,18920,88421,000

5,460

5,616

6,114

5,869

6,055

6,060

6,398

6,206

7,028

6,373

6,696

3.14

3.04

3.02

2.97

3.01

2.96

3.07

3.00

3.30

3.28

3.14

Subscribers(number)

ARPU

Radish （yen）
Price/
Boyapurchase（yen）

Purchase
Frequency(number)76

Disclaimers◆This material is intended to provide an understanding of Oisix ra daichi activities,

not to solicit investment◆Forecasts of Oisix ra Daichi’s operating results and future performance are based on information

available to Oisix ra daichi at the time this material was drafted and are not guaranteed to beaccurate.
Actual operating results may differ from the future outlooks contained in this material.

77