2022/3 Q1 Results
Explanatory Materials

Oisix ra daichi
2021.8.12

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. 2022/3 Q1 Achievements
1-1. Consolidated Financial Results
1-2. Results on Business segment
2. Promotion of “Sustainable retail”
2-1. Zero food waste
2-2. Food Tech
3. Other ESG topics■ APPENDIX・DATA SHEET2

1-1. Consolidated Financial Results

3

Exective summary-2022/3 Q1 Results
Sales
Led by Oisix, sales saw solid growth increasing +21%
◆Domestic Delivery business（Three major brands）✓ subscribers：Led by Oisix, spring promotions performed strongly.
Total subscrbers for the three brands grew by about 27 thousand QoQ.
✓ ARPU：Remained high relative to initial forecasts. Whilst there was a YoY decline,
the impact of COVID-19’s resurgence needs to be considered.

◆Other Business✓ Whilst subscription growth has stabilized at Purple Carrot (U.S.), sales grew roughly
70% YoY. EC support services and SinS/nursery school wholesale also saw solid
business expansion.

EBITDAEBITDA exceeded initial forecasts owing to solid sales growth led by Oisix and
Purple Carrot (U.S.).
✓ EBITDA exceeded initial forecasts on the back of steady subscription/ ARPU growthand higher sales.
✓ EBITDA decreased YoY due to the irregular year in which sales increased while new acquisitions
were not possible due to Oisix logistics capacity restrictions.
✓ On the back of a strong spring promotion campaign this term,
Oisix implemented new PR investments as initially planned.

Net income
Non-operating income improved reflecting a profit turnaround at Welcome(DEAN & DELUCA, affiriate). Quarterly net income increased roughly +9%4

Future Outlook
Sales：By adjusting to lifestyle changes post COVID-19, we aim to secure a healthy increase in subscribers. Although ARPU is
expected to see gradual decline, we aim to maintain purchasing frequency at a high level even after COVID-19.
Costs：we anticipate gradual reduction to CoGS via such initiatives as transitioning to in-house processing. New PR investments
for customer acquisitions will be implemented to the maximum within the appropriate CPA range. With startup of operations at
Oisix’s new distribution center, one-off additional logistical costs are expected in the 2H. With full integration of distribution,
however, we anticipate gradual cost reductions from next fiscal year.

2023/32022/3

Sales

Sub
scribers

By adjusting to lifestyle changes
Expansion post COVID-19, we aim tosecure a healthy increase

By adjusting to lifestyle changes
COVID-19, we aim to
Expansion post
secure a healthy increase

Costs

ARPU

Decrease

Although the decline has beenless than initially expected, we
anticipate a gradual reduction
going forward.

product

Improve

Reduced product and manufacturingcosts by promoting in-houseproduction of processing processes.

Improve

Reduced product and manufacturingcosts by promoting in-houseproduction of processing processes.

PR

Increase

Implemented to the maximum
within the appropriate CPA range.

increase

Implemented to the maximum
within the appropriate CPA range.

With the startup of Oisix’s new
distribution center, temporaly
expenses of roughly 700~800 mn
yen is expected.

Improve

With one-off increases eliminated, full
integration of distribution andenhanced efficiencies will allow for
gradual cost reduction.

With expanding sales,
the ratio of fixed SG&A tosales declined.

Improve

With expanding sales,
the ratio of fixed SG&A tosales declined.

logistics

Other SG&A

Temporalyincrease
Improve

Retain ～Increase

Maintaining a high level of purchasing
frequency even post COVID-19. Via
enhanced value propositions, we aim
for still higher levels.

5

2022/3 Q1 Highlights
Sales：Led by Oisix, sales saw solid growth increasing +21%

EBITDA ：EBITDA exceeded initial forecasts owing to solid sales growth
led by Oisix and Purple Carrot (U.S.).

Sales

27.91bn yen

EBITDA（YoY +21%）

Operating
Income1.95bn yen（YoY ▲6%）2.31bn yen（YoY ▲4%）Net income
Attributable toowners of theparent1.29bn yen（YoY +9%）6

Consolidated Results Overview-SalesPost integration of the 3 domestic home delivery brands, sales growth continued at
a high level. Average annual growth rate was roughly +22%.
Sales（bn yen）

27.91

CAGR

（YoY +21%)

22.3%
23.13

15.25

2019/3Q1*

16.25

2020/3Q12021/3Q1

2022/3
Q1*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.

7

Consolidated Results Overview-Profits
Post integration of the three domestic home delivery brands,
profit growth continued at a high level. Average annual growth was over +40%.
EBITDA

Operating Income

Attributable to owners of the parent

Net income（bn yen）

2.41

2.31
（YoY▲4%)

CAGR

CAGR

2.07

1.95
（YoY▲6%)

53.4%

46.8%

CAGR

41.1%

1.29
（YoY+9%)

1.18

0.73

0.75
0.54

2019/3
Q1*

2020/3Q12021/3Q1

2022/3
Q1

2019/3Q1*

0.54

2020/3Q1

0.462021/3Q1

2022/3
Q1

2019/3Q1*

0.27

2020/3Q12021/3Q1

2022/3
Q1*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.

8

YoY：Sales
Driven largely by the effects of growth at Oisix and Purple Carrot (U.S.),
sales increased by roughly 4.8bn yen (+21% YoY).
Sales （bn yen）
2

27.91

Purple Carrot
Consolidation
About

（B）
(A)

23.13

about

about

About

▲1.7

3.9

1.4

・(A) Increase in subscribers ：about3.9bn yen

1.2

3・(B) Increase in ARPU

Sales increase:
Other：about▲1.7bn yen

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

1
Sales increase:
3 home delivery
brands(A) subscribers(B)ARPU2021/3
Q1

１ Sales increase of
three domestic major brands: about2.2bn yen

３ Sales increase of Other：about1.4bn yen

2022/3Q1・EC support
・Kindergarten wholesale・Hong Kong/ Shanghai
・Consolidated subsidiaries(include new consolidation by "Toyoichi")9

YoY：EBITDA
Profit fell by roughly 0.1 bn yen (▲4％ YoY) reflecting lower margins from weaker
EBTDA/ARPU as well as aggressive PR investment.
As a result, the number of subscribers grew steadily, exceeding the initial plans.
EBITDA（bn yen）

４

３
（B）
（A） About
About ▲0.6

2.41

Purple Carrot
Consolidation

Profits
Increase:Other

0.8

2.31

About

▲0.9
About
About

２

・(A) Increase in subscribers：about0.8bn yen・(B) Increase in ARPU

：about▲0.6bn yen

2 PR investment of about▲0.9bn yen⇒Turn into surplus in 1 year after consolidation

PR investment:
3 home delivery
brands2021/3
Q1

three domestic major brands：about0.2bn yen

３ Profit increase of Purple Carrot ：about0.4bn yen

0.2

0.4

1

１ Profits increase of

４ Profits increase of Other

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

about0.2bn yen

５ Companywide fixed costs increase：about±0bn yen
2022/3
Q1

・Costs increase by labor due to business expansion
・On the other hand, costs for Listing to First Section of
the TSE and costs for COVID-19 that occurred in Q1
in the previous term will not occur in this term.

10

Business segment Results
Sales

Oisix

14.14bn yen 2.05bn yen(YoY +26％)

Daichi

PurpleCarrot(Jan to Mar results)

Otherbusiness(YoY ▲13％)3.31bn yen 0.66bn yen(YoY ▲9％)RadishBoya

Segment profit(YoY ▲8％)4.33bn yen 0.58bn yen(YoY ▲8％)(YoY ▲35%)

2.84bn yen 0.54bn yen(YoY +72％)(YoY +403%)

3.37bn yen 0.42bn yen(YoY +74％)(YoY +56％)

Overview
・Spring PR progressed better than planned resulting
in a Q1 increase of about 25,000 new subscribers.
・ARPU remained high and was up roughly +16%
versus pre-COVID-19 levels.
・Continuing to develop new acquisition methods
that align with target markets such as the new"Marugohan" service.
・ARPU remained high and was up roughly +11%
versus pre-COVID-19 levels.
・Media exposure of “Fuzoroi-Radish”, a new service
that handles food rescue products, is expanding.
・ARPU remained high and was up roughly +11%
versus pre-COVID-19 levels.
・Whilst the large COVID-19 driven growth insubscriptions is stabilizing, both sales and profits
continue to increase.
*Figures are consolidated with a 3-month delay (Q1:
Jan to Mar)・EC support services continued to see strong
performance.
・The SinS/Nursery School Wholesale business saw
sales expansion on steady growth in the number ofcustomers

11

Business segment Results Overview
Sales

27.91
Other

bn yenMarginal profit

Segment costs

12.6％

PurpleCarrotMarginal profit

RadishBoya

Marginal profit

Daichi

Marginal profit

Total segment costs
Segment costs

19.3％

23.63bn yen

Segment costs

13.5％
Segment costs

20.0％

Total
Marginal profit

4.28
Segment costs

Oisix

Marginal profit

14.5％

bn yenCompanywide fixed costs,
Goodwill etc

2.33bn yen
Operating Income

1.95

bn yen12

(Supplemental Information)
Impact of changes
to revenue recognition standards.

◆Main change schemes

Sales and profits will not be significantly affected bychanges to revenue recognition standards.
Although the CoGS ratio shows nominal deterioration,
adjusted for conditional differences,

１ Domestic Delivery✓ Some sales promotion expenses,
such as point discounts, are offset against sales◆Changes CoGs
Apparently
1.1% worse

51.0％
49.9％

2021.3 Q1(Previous)

0.2% improvementcompared tothe same conditions

50.8％

Sales

CoGs

SG&A

Segmental
Profit2 EC Support✓ Sales and expenses that were shown
on a net basis are now shown separately✓ Expenses are accounted for in CoGS.

2021.3 Q1(Revised)

2022.3 Q1(Revised)

Sales

CoGs

SG&A

Segmental
Profit13

1-2. Results on Business segment

14

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 Overseas Business
Purple Carrot(U.S.)
Hong Kong, Shanghai④ Other Business15

Domestic Delivery business（Three major brands）

Overview of Business Segments

Domestic Delivery business（Other）

Overseas Business
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 Overseas Business
Purple Carrot(U.S.)
Hong Kong, Shanghai④ Other Business16

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Overseas Business

Subscribers: Strong spring promotions resulted in an increase of 25 thousand QoQ.
Additionally, whilst there is the effect of having halted new customer acquisitions
in Q1 last year, new subscriber acquisitions grew +32% YoY.
ARPU
：Despite a YoY decline relative to an irregular COVID-19 driven increase last year,
ARPU remained high and beat initial forecasts.

No. of subscribers

ARPU※

333,850（YoY

Other Business

333,850+32％）

12,891（YoY

yen▲7％、vs 2019/3 +16％）

308,8992021/3285,168
274,9292020/3
2019/3

13,822

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

12,986

13,106

12,891
11,379

11,095

13,042

11,745

10,6342020/3 2020/3 2020/3 2020/3 2021/3 2021/3 2021/3 2021/3 2021/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q
*ARPU=Average Monthly Revenue Per User

17

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Overseas Business
Other Business
Meal kit “Kit Oisix” course subscribers also increased by 16 thousand QoQ.
Lifestyle changes that have led to an increase in home dining, such as remote work and an inability to dine-out,
have continued. By providing value propositions that match those lifestyle changes, we have been able to enjoy the
support of subscribers.

No. of Kit Oisix course subscribers*(Includes Oisix subscribers)✓ You can make two main dishes and side

198,821（YoY◆Features of Kit Oisix
dishes in less than 20 minutes.

✓ Uses 5 or more kinds of vegetables+41％）

198,821collected from contract farmers.

✓ Reduced food waste because the181,930

ingredients are used up

163,496
156,416
140,934
130,165
128,320
124,753
119,458

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

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

*From 2022/3, “Chanto Oisix course" will be excluded from the number of Kit Oisix course subscribers. 18*The number of meal kit Oisix subscribers including Kit Oisix course and "Sakutto Oisix course.

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）-“Kit Oisix” value proposition

Overseas Business

By expanding the breadth of the meal kit “Kit Oisix” value proposition,
we increase usage scenes at the dining table as well as create opportunities
for information dissemination and thereby create touchpoints for latent customers.

Other BusinessWith the exceptionof the dinner menu

The occasional vegan lifestyle

All menus have been expanded.
Soup Kit allows for fast meals in the morning.

A vegan kit that responds
to growing health consciousness.

Value proposition of “Kit Oisix”

Premium time saving＋
・The feeling of cooking by yourself

Food education

Reducing professional food loss

Collaboration kits allow parents
and children to enjoy cooking together.

Salad kit utilizes surplus vegetables
intended for restaurants.

・With many kinds of vegetables
・Rich menu that is not continuous©Disney19

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）-Capacity Expansion ①refrigerate

Overseas Business

New ORD Ebina Station:
Other BusinessPreparations are proceeding smoothly ahead of start of operations in Oct 2021.
Implementing facilities to reduce environmental burdens such as solar panels and use of only green electricity.

■Enhancement of refrigeration equipment

refrigerate(New ORD Ebina Station）
Current
state・Completion ceremony held on Aug. 5th・Scheduled to start operation in October.
Preparation is going well

Expected
effect・Doubled refriggerate capacity compared to Mar. 2021
・Improved distribution efficiency by unifying
the new ORD Ebina station

Initialinvestment

About 4bn yen

Features・All electrical power consumed is procured fromrenewable energy sources.
・BCP (Business Continuity Plan) facilities in theevent of natural disaster.
20

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）-Capacity Expansion ②frozen

Overseas Business

ORD Atsugi frozen Station:
To allow for further growth, we have decided to invest roughly 4 bn yen
in new refrigeration facilities. Operations are scheduled to begin in autumn 2023
at which time shipping capacity will expand by roughly 3-fold.

■Enhancement of frozen equipment

Other Businessfrozen(ORD Atsugi frozen Station）
Current
state

Decided to invest for operationin the autumn of 2023

Expected
effect・Doubled frozen capacity compared toMar. 2021
・Improve logistics costs by promoting
automation

Initialinvestment

About 4bn yen

Features

Plans to install solar power
generation equipment to reduce theburden on the environment of the
distribution center▲Image: ORD Atsugi frozen Station

21

Domestic Delivery business（Three major brands）

Daichi KPIDomestic Delivery business（Other）

Overseas Business

Subscribers：Continuing to develop new acquisition methods that align with target markets
such as the new "Marugohan" service.
ARPU：Among seniors as well, demand for food delivery continues to be strong
and has remained at high levels that have exceeded initial forecasts.

No. of subscribers

ARPU※

45,196（YoY

23,025+3％）（YoY
43,941

38,517

Other Business

44,878 44,998 45,307 45,196

yen▲15％、vs 2019/3 +11％）
2021/32020/3
2019/3

27,11737,532 37,121 37,127

24,12823,02524,35623,52022,391
21,604

20,821
21,1592020/3 2020/3 2020/3 2020/3 2021/3 2021/3 2021/3 2021/3 2021/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

1Q

2Q

3Q

*ARPU=Average Monthly Revenue Per User

4Q

22

Domestic Delivery business（Three major brands）

Radish Boya KPI

Domestic Delivery business（Other）

Overseas Business

Subscribers：Media exposure of new service “Fuzoroi-Radish” has been expanding.
Other Business
Subscriptions increased by 2,500 in Q1.
ARPU：Notwithstanding growth in new subscribers,purchase frequency has been maintained at a high level that have exceeded initial forecasts.

No. of subscribers

ARPU※

65,320（YoY

20,188

yen

+5％）

（YoY

65,32061,00962,515 61,822
59,400 58,528

61,51862,751▲13％、vs 2019/3 +11％）
2021/32020/323,1892019/356,93520,88421,00020,18818,202

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

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

1Q

20,25918,621
17,926

19,659

2Q

3Q*ARPU=Average Monthly Revenue Per User

4Q

23

Domestic Delivery business（Three major brands）

Daichi/Radish Boya Topics

Domestic Delivery business（Other）

Overseas Business

Daichi
Radish Boya

：By refining the new "Marugohan" service, we aim to make it
Other Business
into a tool for new customer acquisitions.
：Services that allow for the practice of ethical consumption is finding popularity.
One example is “Fuzoroi-Radish” that allows food loss reduction.

✔

A service that provides a sense ofhealth and delivers a menu/ingredient
set that meets subscriber needs.

✔

“Fuzoroi-Radish,” which specializes in nonstandard products, has developed a seriesof new products that have resulted inmonthly sales of roughly 40 mn yen.

✔

Enhanced services designed to improveusage continuity. Implementation of aneasy to start 3-day course is an example.

✔

By selecting food products without
excessive selection criteria, we offer an
opportunity to participate in food reduction
whether it be from the fields or the sea.
24

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 Overseas Business
Purple Carrot(U.S.)
Hong Kong, Shanghai④ Other Business25

Domestic Delivery business（Three major brands）

EC support

Domestic Delivery business（Other）

Overseas BusinessContinuing from the previous fiscal year, both subscriptions and ARPU
Other Businesshave been steadily increasing. Average basket price has also remained
at levels higher than pre-COVID-19 reflecting planning proposals that mirror subscriber needs.

ISETAN DOOR

d-meal kit

Support for Isetan Mitsukoshi's EC businessCommissioned from operation and management of EC
sites to distribution and delivery.

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

✔ In Q1, both sales and the number of✔ In Q1, both sales and the number of✔ With prolongation of stay-at-home measures, werenovated the UI of our website in June✔ We
to enhance a stress-free shopping

subscribers has grown steadily, partly due tothe influence of COVID-19.

have implemented exhibitions of products from
popular tourist destinations such as France, Kyoto,and Hokuriku.

subscribers has grown steadily, partly due tothe influence of COVID-19.

experience.
26

Domestic Delivery business（Three major brands）

Tokushimaru(subsidiary)

Domestic Delivery business（Other）

Overseas Business

Strong mobile sales demand, triggered by COVID-19, has continued.
Other Business
The value of circulation maintained high growth at +37% YoY.
Vehicles in operation in Q1 rose at a record high pace of 93 units reflecting demand in urban areas.

Impact scale
2022/3 Q1 value of circulation

5.19

Development Scale

Number of vehicles
in operation

833

bn yen（YoY +37%）

Number of affiliatedsupermarkets

142

5.19
3.79

833

2.41

1.78
1.22
243

555
415

314

2018/3

2019/32020/32021/32022/3

1Q

1Q

1Q

1Q

1Q

27

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 Overseas Business
Purple Carrot(U.S.)
Hong Kong, Shanghai④ Other Business28

Domestic Delivery business（Three major brands）

Purple Carrot(U.S.)

Domestic Delivery business（Other）

Overseas Business

Purple carrot is a 100% vegan meal meal delivery business in the United States.
It will recognize consolidated from last Q3. Immediately following consolidation,knowledge of vegan recipes was utilized for meal kits at Oisix as well.

Other Business・Courier service that offers meal kits
only for plant-based meals
・Weekly subscription model for 48
states across the U.S.

◆Vegan LifestyleLifestyle that does not consume animalderived ingredients. In recent years, inconsideration of the global environment,
the style of enjoying vegan food only a
few days a week has spread mainly inEurope and the United States.

Expansion of Vegan Food × Health✔ Global
Conscious Food of Japanese Foodin both Asia and the U.S.
know-how in the food
✔ Management
subscription model was implemented at
Purple Carrot. PC returned to profitability
in 2021/3.
29

※Purple Carrot shows the businesssituation from Jan. to Mar.

Purple Carrot(U.S.)

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

Overseas Business

Whilst subscription growth at Purple Carrot (U.S.) has been stabilizing,sales and profits have continued to rise. This year we will be strengthening
the product lineup to meet a wide range of needs such as Ready to Eat.
①Executing operation excellence

Other Business◆Business activities②Changes by COVID-19①Executing operation excellence
Knowledge of food delivery from ORD

2019/3 Q2：Stock acquisition
2019/3 Q3：consolidated

Sales

$27mn

Returned to
profitability

Improved quality
and lower complaint rate

②Changes by COVID-19
Sales
Operating Income

Sales

Change responsiveness expanded from ORD$15mn

Early start to build and acquire ashipping system.
As a result, sales doubled YoY

Product and service development
2019/3
1Q

2019/32Q

2019/33Q

2019/34Q

2021/3
1Q

2021/32Q

2021/33Q

2021/34Q

2022/3
1Q

Development and sales of Ready to eat
products completed by microwave ovencooking30

Domestic Delivery business（Three major brands）

Hong Kong/Shanghai

Domestic Delivery business（Other）

Overseas BusinessHong Kong：The COVID-19 driven increase in subscriptions has stabilized.
Other Business
Brand recognition has benefited however, and we look to focusing on appealing
to our customers the deliciousness and freshness of our products.
Shanghai ：New initiatives include development of localized meal kit “Kit Oisix” products as well as
new subscriber acquisition channels.

Hong Kong

Shanghai

Launched the service in 2009.
Cross-border delivery of Japanese products

Business experiment started in 2017. Deliver productsthat meet Oisix product standards by local procurement✔ Whilst subscription growth has✔

Due to the influence of COVID-19, it was
not possible to travel to the site, delaying
the speed of business development✔ We look to achieve high frequency sales of popular✔

We are accelerating localization of menus andtastes for meal kit services. Along with menu
advances, we are promoting development ofsales channels (such as cooking class) thatlead to repeat purchases.

stabilized, purchase frequency
remained high in Q1.

but rare fruit. We also aim to appeal to oursubscribers not only the safety of Japanese produce,
but the value of deliciousness and freshness.

31

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 Overseas Business
Purple Carrot(U.S.)

Hong Kong, Shanghai④ Other Business32

Domestic Delivery business（Three major brands）

Shop in Shop

Domestic Delivery business（Other）

Overseas BusinessWe have consummated the sales model of meal kit equipped stores andOther Business
implemented lateral dissemination. Introduction at a new supermarket
was also decided. As a result, total meal kit equipped stores increased by 40 QoQ.

Impact scale
FY2022/3 Q1 Sales■ Spread of model stores

No. of shops

0.22

224

bn yen

0.22
0.18

0.18

0.19

224
120

139

152

2019/32020/32021/32022/3

1Q

1Q

1Q

1Q

✓ Meal kit sales model started by
3 companies after April.
✓ We look forward to repeat customers
visiting supermarkets as they seek
meal kits.
33

Domestic Delivery business（Three major brands）

Nursery School Wholesale

Domestic Delivery business（Other）（suku-suku Oisix）

Overseas BusinessWith fiscal year change, the number of vendor farms was
Other Businessincreased significantly to over 600. In collaboration with nursery schools and families,
we plan starting a new food education program designed to stimulate children's interest in food.

Impact scale
2022/3 Q1 Sales

0.28

bn yenNo. of trading nursery school■Food education projects
at nursery school and home

601

0.28
0.24
0.16 *

601

0.17✓ Total support for nursery school and homedietary education

380

402

✓ By combining Oisix's menu development290
2019/32020/32021/32022/3

1Q

1Q

1Q

1Q

capabilities for children with the knowhow ofschool lunches at nursery schools, weenhance a focus on "eating" among children.

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

34Domestic Delivery business（Three major brands）

Toyoichi (subsidiary)

Domestic Delivery business（Other）

Overseas BusinessIn the 6-months following the consolidation of "Toyoichi" (March 2021),
Other Businessproduct development in several areas have already been started.We continue
to enhance the fishery category by developing new products that leverage the product procurement
capabilities of "Toyoichi."

New product development▲(left)Boiled scallops for sale as a standard item.
(upper)Local fish (lower) Sardines that can be eaten whole

Food waste prevention▲(left)Large scallops that were mainly wholesaled to restaurants(upper)Processed high-grade fish (lower) Freshly caught Shirasu✓ Product development at each of the domestic homedelivery businesses is progressing well. In roughly
4-months, 16 new products have been developed.

✓ Large scallops being one example, we sell tohouseholds products that were essentially soldonly to restaurants via an easier-to-use format.

✓ New initiatives are accelerating as manifestedby the decision to go forward with the plan on
distribution-style.

✓ As a seasonal year-end product, we plan developing
marine products that have hitherto only been
available in the localities they were harvested.
35

Domestic Delivery business（Three major brands）

DEAN＆DELUCA（Affiliated company）

Domestic Delivery business（Other）

Overseas Business

Whilst DEAN & DELUCA (Welcome, 20% stake) has been negatively affected by
Other Business
continued shortened sales hours stemming from COVID-19, it has returned
to profitability with gradual pick-up in business along with the help of COVID-19 subsidies.

performance overview✓ Although the impact of COVID-19 continues,
business performance gradually recovers✓ Online sales continue to be strong.
In addition, They will focus on sales
through new channels such as event sales
at department stores.

・・Lifestyle business throughretail and restaurant businesses◆Main Brand： DEAN＆DELUCA（47 shops）
GEORGE’S（21 shops）
etc,

outlook✓ Although uncertainties about the impact of
COVID-19 will continue, continuous
improvement in business performance is
expected.
✓ Inclusive of likely employment adjustment
subsidies, we believe the possibility of alarge non-operating loss is low.
36

2. Promotion of “Sustainable retail”

37

2-1. Zero food waste

38

Zero food waste-Relation for subscription model
By leveraging a food subscription model
Aiming to eradicate food loss by embodying "Sustainable Retail"Fields

Logistics

Home

Reduction of foodwaste by cooperation
with fields

Reduction of food waste
by providing services that
do not have excess
ingredients

Reduce food waste bycontrolling demand

Aiming for zero food waste
by utilizing the subscription model growth model
39

Zero food waste-Supplychain
In our business model, food loss is low in each supply chain of "field", "logistics", and "dining
table", but we aim to eliminate food loss by further reduction.

Fields

Logistics

Contributing to reducing food loss
in fields by directly connecting
and cooperating with fields

Non-standard products andSales volume of food loss
reduction products (April-July)

Reduce food loss in the company's
distribution process with asubscription model that makes it
easy to forecast demand and control
demandRate of food loss
in distribution.

About

58t

5~10%

（Does not include usage with Kit Oisix）

Contributing to reducing household foodloss by providing services that are notleft over at home, such as Kit Oisix andOisix properly.

Volume of food loss using Kit Oisix whichpackages only the required amount ofingredients.

Reduced toabout

Retail Ave

About

Home

About

0.2%

1/3

Amount of food loss reduction
at home (April-July)

600t

About

※ 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

Zero food waste-latest Topics
As manifested by “Upscale by Oisix” and “Furuori” which handle upcycle products and substandard products
respectively, we have implemented sales platforms dedicated to food waste. Contributes to reduction in foodwaste at site of production.

Upcycle by Oisix“Fuzoroi” Radish

Selling "Upcycle" that adds value
to what was previously abandoned

Selling products that did not meet the shipping
standards and were abandoned
at the production site

▲Broccoli stalks remaining in frozen vegetable factories are sold as chips▲Tomatoes that are ugly in shape but have a strong umami taste✔

A special site was opened in July, contributing to
the prevention of food waste of about 1.5 tons
in just one month.

✔

Contributed to the prevention of food waste ofabout 57 tons since its launch in April, centering
on irregular vegetables and fishery products✔

Create a market with sales of over 2 bn yen
within 3 years✔

Monthly sales of about 40 mn yen at thepermanent sales floor

Making possible both food loss eradication and business growth.
41

2-2. Food Tech

42

Food Tech
-Relation for subscription model
By aggressively utilizing/investing in food-tech, we aim to not only energize the food market,
but to realize sustainability across the entire supply chain

Activation of the food market

Opportunities to utilize
new technologies/ Business growth

Assets, sales floor
provision, businesssupportFood Tech Start-up
Agri-Tech

New Food

KitchenTech

Healthcare

Good producer

Subscribers

Spreadof food culture

Innovationin production
technology

Technology product development

43

Food Tech-Capital and business alliance with Green Culture

A capital and business alliance was finalized with Green Culture Co., Ltd., a firm conducting
R&D of vegetable meat. Via food-tech, we look to increase the exposure of vegetable meat
thereby lending support to a sustainable food culture.

Green Culture

Oisix ra daichi

・About 440,000 subscribers
・vegan menu from Purple Carrot
・New food section "Oisix Craft Market"

・Accelerate startup business growthby providing a food tech ecosystem×

Under the theme of "Health and theEarth," we develop, manufacture,and sell vegetable meat in orderto create a sustainable future.

・Plant-based food development know-how
・Vegetable meat products with a reputation
for deliciousness
・Strong awareness toward the realizationof a sustainable society✓ Strengthening the food-tech space by participating in the vegetable meat business✓ Responding to consumer demand heightened by health and environmental concerns.
✓ Development of new products have begun.
Plan to offer a multiple of new processed products in autumn.
44

3. Other ESG topics

45

website about sustainability
Established a dedicated website to address sustainability initiatives and information disclosure.
Going forward, we aim to continue expanding information disclosure in accordance with the
GRI international disclosure standard.

Main disclosure components
Environment
・Green Shift strategy overview
・Food waste reduction measures
・GHG emission resultsetc,Society・Employees/ occupational safety/
human resource development
・Contribution and support with local communities
・Efforts to improve product quality

etc,

Governance
・Board of Directors Performance/ Compliance System
・Risk management system▲Image of sustainability site
https://en.oisixradaichi.co.jp/sustainability/etc,

Going forward, we will continue toproactively disclose sustainability
information and expand our efforts.
46

We Support“We Support,” which is a food support platform for medical professionals, has
supplied a total of 640 thousand foods Provided to medical institutions, the total
amount of support has reach 0.7 bn yen.

Supportmedical institution
Number of groups

113

A platform that connects medical
institutions with food support companies

Supporters
Participating companies

125

Total amount of support
Total amount of support meals

640thousand meals

0.7bn yen

About

About

47

Welcome back/Work style support
We have implemented such programs as "welcome back ceremony" and "child-rearing coaching"to support a balance between work and family. We have also been promoting support for theworkability of all employees (not limited to child rearing) in a variety of work environments"Welcome back ceremony"for employees returning fromchildcare leave
A ceremony to convey to employees returningfrom childcare leave the company’s appreciationand hopes. This year, the fifth year of the program,
male employees also participated for the first time.

A "child-rearing coaching" course.
Thought to be useful both at home and at work, we
held the first course for communication skills.

48

New corporate officer structure
At the Ordinary General Shareholders' Meeting in June, two new directors were appointed which
resulted in an increase in the ratio of independent outside directors and female directors.
Going forward, we aim to continue expanding board diversity to further strengthen ourgovernance and promote both expeditious and equitable decision-making.

Director：10

Auditor：3：female directors

独 ：independent＋

Outside director：5
独

独

outside directors

独New Director

New Auditor

Misato Kowaki

Chika Otobe

49

APPENDIX・DATA SHEET

50

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：

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

51

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 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

Main Affiliates
Nihon Agri Inc.

Exports agricultural products.

DEAN & DELUCA

Lifestyle business through retail and restaurant businesses
52Trend in No. of Employees
915
860
735
680

421

163

179

2013/3

2014/3

192

2015/3210

2016/32017/3

2018/3

2019/32020/32021/353

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.

54

Our Subscription Model
Expanding our business areas to include alliances and marketing support for othercompanies based on subscription 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

55

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

Households who want toenjoy cooking

Senior women in twoperson households

Meals that can be boasted
without taking time

Self realization
through Cooking

Easy feeling of health

Producers

56

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

57

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
decisions58

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 80％（area aroundmetropolitan area）
59

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

60

“Tokushimaru” (subsidiary)
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 rule61

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 Q3* Hexa Research『Global Meal kit Delivery Service Market Size And Forecast,/ByType (Fresh Food, Process Food) And Trend Analysis, 2015 - 2025』

62

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

63

Nursery School Wholesale（suku-suku Oisix）
The kindergarten wholesale business was launched in FY2015. Based on the Omakase Boyasystem that 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 management64

DATA SHEET：Results
Results
2020/32021/32022/3

Q1

Q2

Q3

Q4

Q1

Q2

Q3

16,26532,552

52,42571,04023,132

47,567

74,790100,061

27,911

Operating
Profit

543

900

1,597

2,467

2,076

3,976

6,131

7,465

1,950

EBITDA

755

1,348

2,381

3,595

2,419

4,679

7,198

8,902

2,316

Net income
Attributable toowners of theparent

270

390

695

790

1,184

2,452

3,900

5,031

1,293

（mn yen）

Sales

Q4

Q1

65

DATA SHEET：Business Segment Result
Business Segment Result
2020/3

Daichi

Radish Boya

Purple Carrot

Other
Business

2022/3

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Sales

8,308

16,524

26,52235,82911,26523,04737,03649,86314,145

Marginal
profit

933

1,868

3,261

4,801

2,367

4,335

7,012

8,984

2,057

Sales

2,587

5,137

7,936

10,541

3,636

7,094

10,761

13,9783,314

Marginal
profit

457

885

1,397

1,889

724

1,368

2,160

2,751

663

Sales

3,770

7,459

11,41014,980

4,721

9,083

13,653

17,704

4,331

Marginal
profit

688

1,273

2,001

2,667

899

1,626

2,449

3,023

584

Sales

-

-

-

-

-

-

-

-

2,842

Marginal
profit

-

-

-

-

-

-

-

-

549

Sales

1,663

3,529

6,383

9,497

3,601

8,522

13,60018,922

3,373

Marginal
profit

256

557

656

846

391

1,038

1,599

2,320

427

1,792

3,683

5,719

7,736

2,305

4,391

7,089

9,655

2,329

（mn yen）

Oisix

2021/3Companywide fixed costs,
Goodwill etc

66

Data Sheet：Main KPIKPI trend
2020/3Oisix

Daichi

RadishBoya2021/32022/3

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Subscribers(number)

221,612226,187

230,393239,837

252,303

274,929

285,168

308,899

333,850

ARPU
（yen）

11,095

10,634

11,37911,745

13,822

12,986

13,106

13,042

12,891Price/
purchase
（yen）

5,884

5,840

6,055

6,166

6,748

6,201

6,315

6,215

6,098

Purchase
Frequency(number)

1.89

1.82

1.88

1.90

2.05

2.09

2.08

2.10

2.11

Subscribers(number)

38,51737,532

37,121

37,12743,94144,87844,99845,30745,196

ARPU（yen）

20,821

21,15922,391

21,604

27,117

24,12824,35623,52023,025

Price/
purchase
（yen）

8,195

8,292

8,732

8,508

9,234

8,610

9,000

8,729

8,425

Purchase
Frequency(number)

2.54

2.55

2.56

2.54

2.94

2.80

2.71

2.69

2.73

Subscribers(number)

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

61,51862,751

65,320

ARPU（yen）

18,202

17,926

19,65918,621

23,18920,88421,00020,25920,188

Price/
purchase
（yen）

6,055

6,060

6,398

6,206

7,028

6,373

6,696

6,441

6,402

Purchase
Frequency(number)

3.01

2.96

3.07

3.00

3.30

3.28

3.14

3.15

3.15

67

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.

68