FY2021/3 2Q Results
Explanatory Materials

Oisix ra daichi
2020.11.12

Table of Contents
1. FY2021/3 2Q Achievements
2. Results on Business segment
3. Social activities under COVID-19 circumstances

4. Results Forecast Revisions
5. New Business Topics
6. Our initiatives about sustainable■ APPENDIX・DATA SHEET

1

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.
2

1. FY2021/3 2Q Achievements

3

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(2Q is consolidated from Apr to June).
4

Executive summary
ーFY2021/3 1H Results●Sales✓ Whilst the surge in home delivery demand has begun to stabilize, sales rose on
continued healthy growth in subscriptions and ARPU.

✓ Subscribers grew roughly 20,000 as the 1Q logistics capacity crunch at Oisix was
mostly resolved and beginning in mid-2Q new customer acquisitions resumed in full.
✓ The three brands saw 15~20% YoY rise in ARPU reflecting strong home delivery
demand as families stayed home and avoided summer travel/hometown visits.

✓ In overseas home delivery, sales at Purple Carrot/ the Hong Kong business havegrown strongly generating profits for the first time on a quarterly basis.
✓ Whilst real businesses, such as nursery school wholesale, saw continued sales
decline in 2Q, they are beginning to recover to year earlier levels.

●Profits✓ Marginal profit margins continued to improve in 2Q reflecting higher sales driven
profits and enhanced logistical efficiencies stemming from higher ARPU.
✓ 1H profits were boosted by ¥750mn in unspent new customer promotional
expenses related to the 1Q logistical capacity issue and resulting restraint in new
customer acquisition activity.

5

FY2021/3 1H Highlights
Sales ：Continuing from 1Q, subscriptions and ARPU saw healthy growth
on increased Covid-19 driven home delivery demand.
Profits：Profits are ahead of plans on higher sales/ARPU as well as
customer promotional expenses that were unspent at Oisix.

Sales

47.56bn yen（YoYOperating
Income+46％）

3.97bn yen（YoY+341％）EBITDA

4.67bn yen
（YoY

Net
incomeAttributable toowners of theparent

+247％）

2.45bn yen（YoY+528％）
6

Consolidated Results Overview
Due in part to the COVID-19 driven increase in home delivery demand,
both sales and profits hit record highs in 1H.
Sales

EBITDA

47.56（YoY

bn yenOperating Income

4.67

bn yen

+46％）

（YoY

bn yen+247％）（YoY+341％）

4.67

47.56

30.12

3.97

3.97

32.55

18.93
1.44

1.34

1.04

0.90

0.63
0.23
FY
2018/3
1H

FY
2019/3
1H

FY
2020/3
1H

FY
2021/3
1H

FY
2018/3
1H

FY
2019/3
1H

FY
2020/3
1H

FY
2021/3
1H

FY
2018/3
1H

FY
2019/3
1H

FY
2020/3
1H

FY
2021/3
1H*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.

7

YoY : Sales
Sales （bn yen）
2

Sales
increase:
Other

About
0.8

About
10.1

32.55
1

About
4.1

3

47.56

１ Sales increase(3 home delivery brands): about10.1bn yen
・Increase in ARPU

PurpleCarrotConsolidation：about6.6bn yen

・Increase in subscribers ：about3.5bn yen

2 Sales increase: Other：about0.8bn yen

Sales increase:
3 home delivery
brands・EC support/Hong Kong ：about1.0bn yen
・Kindergarten wholesale ：about▲0.2bn yen
Etc.,

３ Purple Carrot Consolidation：about4.1bn yen
FY2020/3
1H

FY2021/3
1H

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

8

YoY : EBITDA
１ Profits increase:(3 home delivery brands)：about2.5bn yen

EBITDA（bn yen）
３

Profitsincrease:Other

About
0.1

1

Profits increase:
3 home delivery
brands

About
0.75

４

2 Oisix New
About
2.5

About
0.35

PurpleCarrotConsolidat
ion

About
0.45

５

4.67

・Increase in ARPU
：about1.6bn yen
・Increase in subscribers ：about0.9bn yen

2 Oisix New promotional

expenses unused：about0.75bn yen

３ Profits increase(Other)：about0.1bn yen

fixed
costs
increase

・EC support/Hong Kongpromotional
expenses
unused：about0.1bn yen

４ Purple Carrot Consolidation：about0.35bn yen
・Return to profitability for the first time

1.34

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

5 Companywide fixed costs
increase：about0.45bn yen
FY2020/3
1H

FY2021/3
1H

・Costs for COVID-19
・Costs for Listing to First Section of the TSE Etc.,

9

Business segment Results
Sales

Oisix

Daichi

RadishBoya

Otherbusiness

Segment profit

23.04bn yen 4.33bn yen(YoY +40％)(YoY +132％)

7.09bn yen 1.36bn yen(YoY +38％)(YoY +55％)

9.08bn yen 1.62bn yen(YoY +22％)(YoY +28%)

8.52bn yen 1.03bn yen(YoY +142％)(YoY +86％)

Overview
・We resumed new acquisition by resolving
tight shipping capacity. Approximately
20,000 subscribers increased in 2Q
・ARPU increased by about 20%YoY

・From this term, we will move to the
expansion phase. Approximately 1,000
members increased in 2Q.
・ARPU increased by about 15%YoY

・We focused on reform of procurement
logistics in 2Q, and the number ofmembers decreased slightly
・ARPU increased by about 15%YoY
・EC support business and overseas business are
growing steadily.
・Sales in the real media business, such as thenursery wholesale business, are gradually recoveringto the previous year's sales, but sales continue todecline in 2Q.
・In the first half, sales and profits of Purple Carrot
will increase due to new consolidation

10

Business segment Results Overview
Sales

47.56
Other

bn yenMarginal profit

12.2％

Segment costs

Total segment costs

RadishBoya

Daichi

Marginal profit Segment costs

17.9％

39.20bn yen

Marginal profit Segment costs

19.3％

Total
Marginal profit

8.36
Marginal profit Segment costs

Oisix

18.8％

bn yenCompanywide fixed costs,
Goodwill etc

4.39bn yen
Operating Income

3.97

bn yen11

2. Results on Business segment

12

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 Business13

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 Business14

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Other Business

Subscribers：Grew roughly 20,000 as logistical capacity issues
were resolved and new customer acquisitions resumed in full.
ARPU：Demand for home-cooked meals has risen 20% YoY as families refrained
from summer travel and hometown visits.

No. of subscribers

ARPU※

274,929

12,986yen（YoY +21％）

274,929（YoY +22％）

FY2020/3
FY2021/3

252,303239,837
226,187
221,612230,393

13,822

12,986

202,427

186,929

193,461

177,606

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
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

2Q

3Q

*ARPU=Average Monthly Revenue Per User

4Q

15

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.

◆The number of meals sold by Kit Oisix

No. of meal kit course subscribers(Includes Oisix subscribers)(Sales trends in the first half)

11.67mnmeals

185,875（YoY +38％）

185,875

6.08mnmeals＋39％

150,093
141,292
134,895
128,551

FY2019/3
1H

111,169
87,2328.30mnmeals

CAGR

160,11279,674

Other Business

FY2020/3
1H

FY2021/3
1H

for Kit Oisix has increased✔ Demandsignificantly due to an increase

94,841

in home-cooked

FY2019/3 FY2019/3 FY2019/3 FY2019/3 FY2020/3 FY2020/3 FY2020/3 FY2020/3 FY2021/3 FY2021/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

16

Domestic Delivery business（Three major brands）

Oisix Topics-Kit Oisix Collaboration

Domestic Delivery business（Other）

Other Business

Released multiple collaboration kits that utilize our meal kit
development know-how and our partner’s recipes/ingredients.
Going forward, besides product collaboration, we consider new solutions
such as collaboration in the EC business realm.

Collaboration with Mos Burger

Collaboration with OOTOYA◆Enchanted Bolognese◆Chicken and vegetable black vinegar ankake✔ 12,000 Bolognese sets utilizing

the renewed "Mos Burger" meat sauce
sold out immediately on day of sale.

In addition to investing in the Future
Food Fund, we are considering othercollaborative initiatives in the food space.

✔

A Kit Oisix reproduction of the most popularmenu at OOTOYA for 18 consecutive years
sold out immediately on day of sale.

Promoting joint development ofcollaborative menus for Ootoya’s EC
business and Ootoya restaurants.
17

Domestic Delivery business（Three major brands）

Oisix Topics-Restaurant support

Domestic Delivery business（Other）

Other Business

The “Home Restaurant” which address new customer behavior has been very
well received by both restaurants and customer. We plan to continue
expanding our handling.
【Sales performance】
Number of “Kushikatsu” soldexceeded 170,000
casserole kits sold

4,000

【customer's voice】✔ I wanted to go to the restaurant and eat lamb sukiyaki once,but I ordered it immediately because it was difficult to eat
out due to the state of emergency. It was delicious.

✔ We ate it on Father's Day so that my father, a✔ expanded to 23 shops and 43 items

medical professional, could feel like a restaurant
for the first time in a while. Side dishes anddrinks were also reproduced and it was exciting.
I still want to use it.

18

Oisix Topics
ーSayama Station

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

Other Business

Completion in October 2020 as originally planned.
In 3Q, we will see operational testing of the Sayama Station ahead of next fiscal year’s
new center opening.
The new capacity will allow us to meet increased shipping demand in the future.

Status of shipping capacity✔ Initially planned to operate in 3Q, but the productivity improvement of
the existing center went well, and it was changed to 4Q operation.

Station will be undergoing priority operational✔ Sayama
tests in 3Q in preparation for the optimal start ofoperations at the new Ebina Station next fiscal year.

✔ On the other hand, shipping capacity increased 50% andsystems have been put in place to handle sudden surges indemand should COVID-19 reaccelerate.

initial investment andincrease in logistics costs① Initial investment ：About 50 million② increase in logistics costs：About 15 million/month（during 4Q of this term to 3Q of next term）
19

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

NEW

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% increase

20

Domestic Delivery business（Three major brands）

Daichi KPIDomestic Delivery business（Other）

Sunscribers: Increasing trend continued partly on sustained repeat demandby new subscribers who joined during the Covid-19 self-restraint period.
ARPU：Increased by roughly 15% YoY as families refrained from summer
travel/hometown visits and home delivery demand expanded.

No. of subscribers

Other Business

ARPU※

44,87824,128yen（YoY +20%）（YoY +14％）
FY2020/3

44,086 43,775

44,87842,071

FY2021/3

43,94140,18938,51737,532 37,121 37,127
27,117

24,12822,391
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
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

2Q

3Q

*ARPU=Average Monthly Revenue Per User

4Q

21

Daichi Topics

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

Other Business

Develop a method of attracting customers to re-expand members and carryout sales planning to improve LTV of the target group while responding to
COVID-19.
Improvement of
attracting customers✔ Trial set to match 「Vegetable day」 was doing well✔

Strengthening the system by increasing the number ofoutbound personnel⇒Minimize opportunity loss andmaintain subscribers growth in 2Q

Improvement of LTV◆For seniors living with two people,✔

Sales of additional subscription courses for fruits andvegetables were strong, recording +20% YoY sales.

✔

The new brand “connoisseur's seasonal fish” is sales thatexceed initial expectations.

◆For Self-restraint Customer change,✔

"World dining table" special feature greatly increased sales.
22Domestic Delivery business（Three major brands）

Radish Boya KPI

Domestic Delivery business（Other）

Other Business

Subscribers：Fell slightly in 2Q as priorities were placed on operational
improvement and new customer acquisitions were restrained as per prior stated strategy.
ARPU：increased by roughly 15% YoY as families refrained from summer
travel/hometown visits and home delivery demand expanded.

ARPU※

No. of subscribers

61,822

20,884yen（YoY +4%）
74,240（YoY +17％）
FY2020/3

71,616FY2021/3
66,07062,93562,51561,00959,400 58,528

61,82256,93523,18920,884
19,65918,202FY2019/3 FY2019/3 FY2019/3 FY2019/3 FY2020/3 FY2020/3 FY2020/3 FY2020/3 FY2021/3 FY2021/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

18,621
17,926

2Q

3Q*ARPU=Average Monthly Revenue Per User

4Q

23

Domestic Delivery business（Three major brands）

Radish Boya Topics

Domestic Delivery business（Other）

Other BusinessA measure to enhance profitability this fiscal year - "Consolidation of Radish Boya
Collection Centers" - has been implemented in stages since June. Purchasing cost was
reduced by roughly 0.4ppts owing to center consolidation for fresh produce.

After

BeforeProducers

Fruit andvegetable
claims

Producers

CoGs

Since producers nationwide deliver
individually to each distribution center,
unnecessary procurement and distribution
costs and disposal loss increase.

Cost of fresh produce was reduced by roughly
0.4ppts owing to center consolidation.

There were variations in quality
checks at each center

By consolidating the centers, "uniform quality
standards" and "quick quality feedback to
production areas" will be possible, and wewill focus on 3Q and beyond.
24Domestic Delivery business（Three major brands）

Domestic Delivery business Topics

Domestic Delivery business（Other）-”Osechi”

Other Business

Facing difficulty in planning for year-end holidays, an increasing numberof families appear to be looking to simply stay home. New “paired” products connecting
separated families, such as between homes and hometown (parent) homes,
have proven to be popular and all three brands experiencing YoY growth.

Oisix
small number of✔ Proposepeople and multiple
purchases such as pair salesof home + parents' home

Daichi

Radish Boya

addition to New Year dishes,✔ In
strengthen sales of hot pot and"forwarding✔ Implemented
service" as a year-end gift for

crab ingredientsfamily members

The total of the three brands is aim toincrease by over +20% YoY growth.
25

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 Business26

Domestic Delivery business（Three major brands）

EC support

Domestic Delivery business（Other）

Other BusinessWith resolution of the shipping capacity issue at Oisix, new customer acquisitions
have resumed and new regular subscriptions have seen a healthy increase.
In similar fashion to the domestic home delivery business, ARPU also increased.

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.

✔ Resuming new acquisition due to the✔ The number of regular members increased✔ Subscribers grew steadily due to✔ The trial set commemorating the first anniversary

elimination of tight capacity

increased demand for home delivery,
and doubled from the end of theprevious fiscal year

about 2times from the end of the previous
fiscal year in response to the increase indemand for home delivery.

of the service is also performing well.
Cumulative number of meal kits exceeds 400,000

27Domestic Delivery business（Three major brands）

Tokushimaru(subsidiary)

Domestic Delivery business（Other）

Other Business

Significant growth in both transaction value and number of units in operation.
Demand for mobile sales at retail stores is expanding by Covid-19.
Steady progress against the annual increase of 300 units in operation under the initial plan.
The 1H value of circulation

Background of expansion

7.72

bn yen（YoY +55.0%）

7.72

Number of vehicles
in operation

614

4.98

✔

Seen as a sales method to avoid crowding,demand/inquiries regarding mobile sales atretail stores grew.

✔

Improvements to the vehicle fleet expansion
scheme has led to accelerated growth.

✔

Seen as a source of employment, sales
partner applications have increased.

614

3.67
2.53
1.55

Since September,the number of vehicles was increased
by one per week440

resulting in a rapid jump
to 11 operating vehicles.

336
268

189
FY2017/3

FY2018/3

FY2019/3

FY2020/3

FY2021/3

2Q

2Q

2Q

2Q

2Q

28

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 Business

29

※Purple Carrot shows the businesssituation from Apr. to Jun.

Purple Carrot(U.S.)

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

Other BusinessContinuing from 1Q trends, the rapid increase in home delivery demand
allowed for a quarterly profit. Growth in sales/subscriptions, however, have begun to stabilize.
Aiming for intrinsic profit generation capability via a focus on service improvement.

Business status

Progress of wholesale business✔ Similar to 1Q,

quarterly profit was achieved in 2Q (April~June).

✔ Whilst subscribers have continued✔ Meal kit wholesale to Whole Foods

Markets, the largest organic retailer
in the U.S., started in July and issteadily expanding.

to see substantial increase by Covid-19,
they are beginning to stabilize.

✔ A new unit has been created to specialize

on customer satisfaction as the Co.
aims for intrinsic profit generation capability
via a focus on service improvement.
QoQ◆No. of subscribers
QoQ

QoQ

+35％

+30％

+20％

FY2019/12
3Q

FY2019/12
4Q

FY2020/12
1Q

FY2020/12
2Q

30

Domestic Delivery business（Three major brands）

Hong Kong/Shanghai

Domestic Delivery business（Other）

Other BusinessHong Kong: The COVID-19 driven increase in demand has resulted
a quarterly profit for the first time ever. Given the one-off natureof the increase in sales, the Co continues to focus on stable sales and profit generation.
Shanghai: Completed fine-tuning of meal kits to match local customer needs.

■ Hong Kong

■ Shanghai

・・Launched the service in 2009. Crossborder delivery of Japanese products

・・Launched the service in 2017. Deliverproducts that meet Oisix product standards
by local procurement✔ Demand continues to increase due to✔ The meal kit service, which started in June

✔ Increased air transportation and local✔ Toward the next phase of "establishingthe impact of COVID-19 andachieved and quarterly surplus

last one-mile to meet the rapid increasein home delivery demand

this year, has completed the refinement of
products that meet local needs.
continuous services," we will implement
loyalty improvement measures that utilize
communities.
31

Domestic Delivery business（Three major brands）

Real Retail Business

Domestic Delivery business（Other）

Other Business

SinS: Steady progress in building Kit Oisix's Shop sales model
Nursery School Wholesale: Recovering from the impact of school closures in 1Q,
sales in 2Q were roughly in-line with year earlier levels.

Shop in Shop

Nursery School Wholesale

1H Sales

0.40

1H Sales0.41

bn yenbn yenNo. of shops

No. of trading
nursery school

150

412

0.39

0.37

0.38

0.40

0.50

0.41

0.36

0.18

FY2018/3

FY2019/3

FY2020/3

FY2021/3

FY2018/3

FY2019/3

FY2020/3

FY2021/3

2Q

2Q

2Q

2Q

2Q

2Q

2Q

2Q

32

Domestic Delivery business（Three major brands）

Future Food Fund

Domestic Delivery business（Other）

Other Business

Fuso Chemical Industry and JALUX participate in the new LP.
Relationship to LP is not only about investing, but also about diverse discussions
in the food space relating to potential business alliances.
In addition, a new investment has been decided for snaq. Me, which sells snack subscriptions.
The corporate venture capital that specializes in the area of ​food innovation.
As a business in the food sector, we aim to build an entire ecosystem by
actively investing in advanced processes in "food, agriculture, and healthcare"both in Japan and overseas.

Food Start-ups

Limited Partner

NEW

NEW

Relationship to LP is not only about investing,but also about diverse discussions in the foodspace relating to potential business alliances.

Natural snack
subscription sale33

Affiliated company topic

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

Other Business

2Q Sales at affiliate Welcome (Dean & Deluca) recovered
to roughly year-earlier levels.
1Q✔

In April and May, sales fell sharply owing totemporary closure of all stores by COVID-19.

✔

At twice year-earlier levels, online store sales are strong.

2Q✔

With good recovery in store visitors, sales havebounced back to near year-earlier levels.

✔

Partly owing to new charges for plastic shoppingbags, sales of eco-bags and seasonal tote bags
are strong.

34

3. Social activities
under COVID-19 circumstances35Social activities-Healthcare worker support“We Support,” which is a food support platform for medical professionals,
has supplied a total of 360,000 foods
Provided to medical institutions, the total amount of support exceeded 300 mn yen.
Expanding support to medical institutions in western Japan.

Support achievement◆Total amountof support：
・・A platform that connects medical
institutions with food support companies◆Total amount of
support meals：

About

0.33bn yen
About360,000meals◆Support company：
・Ajinomoto
・Ito-en・KAGOME・Kameda Seika etc.

94

76

◆Support medical
institution：
・Eiju General Hospital・Tokyo shinagawa Hospital etc.

*As of 31 Oct. 202036

Social activities-Producer / local support
We implementing sales support and product development for foodstuffs
whose sales have been decimated by the decline in dining-out/ tourism.

Local brand chicken"Awao Dori"✔ We developed and supporting salesof a meal kit utilizing “Awao Dori,” achicken brand on Tokushima Pref.
that saw its sales channels
evaporate with declining tourism.

Sake rice for Japanese sake
✔ Demand for sake rice used inJapanese Sake has taken a hit withfalling restaurant demand. As a
new idea to generated demand, weare selling sake rice as a risotto set.

✔ We distributing as shareholder gifts
for fiscal year 2020.

*Sales start from Nov. 19*Sales start from Dec. 10

37

4. Results Forecast Revisions

38

Highlights
of Results Forecast Revisions
The full-year earnings outlook has been revised reflecting better
than expected subscription and ARPU numbers in the 1H versus
initial May forecasts.
Initial forecast

Revised forcast

ChangeSales

78.00bn yen

90.00bn yen+12.00bn yen+15.4%EBITDA

4.40bn yen

6.40bn yen+2.00bn yen+45.5%

Operating
Income3.00bn yen

5.00bn yen+2.00bn yen+66.7%Net income

1.20bn yen

2.50bn yen+1.30bn yen+108.3%Attributable toowners of theparent%39

About the outlook for the 2H
2H sales and profits are likely to continue to benefit from the 1H increase in subscriptions.
On the other hand, we conservatively assume a decline in ARPU as the tailwind provided by
Covid-19 diminishes. Additionally, we anticipate rising costs as unspent 1H promotional
expenses and new spring promotions are implemented. There are also increased logistics
costs relating to start-up of operations at Sayama Station.
Revised forcast

Sales

1H Results

2H Outlook(Achievement Rate)

90.00bn yen 47.56bn yen（ 53％）

Sales＋ Sales increase due to the number ofsubscribers increases＋ Sales increase due to year-end and
New Year sales promotion

EBITDA
Operating
IncomeNet income
Attributable toowners of theparent6.40bn yen
5.00bn yen
2.50bn yen

4.67bn yen（ 73％）

3.97bn yen（ 80％）

2.45bn yen（ 98％）

Possibility that ARPU will gradually－ decrease
Costs✔ Additional earn out costs incurred
due to strong Purple Carrot
performance（3Q）✔ Investing PR costs for undigested portionin 1H（3Q/4Q）

large-scale PR costs (4Q)
✔ Oisix：Spring(Planned large-scale upfront investment for the next
term, apart from unused portion of this term)in logistics costs due to the✔ Increase
operation of Sayama station. (4Q)40

Forecast revision by segment
Initial forecast

Revised forcast

Segment profit

Sales

Home Delivery Business

Oisix（Exclude the impact
of goodwill amortization）

43.00bn yen 6.15bn yen

Segment profit
Sales

45.00bn yen 7.00bn yen(change rate +5％)

Daichi11.00bn yen 2.05bn yen
14.00bn yen 2.55bn yen
10.00bn yen 0.90bn yen

+14％)

+9％)

(change rate

+20％)

16.50bn yen 3.00bn yen(change rate

Other
Business(change rate

12.00bn yen 2.45bn yen(change rate

RadishBoya（Exclude the impact
of goodwill amortization）+18％)(change rate

+18％)

16.50bn yen 1.40bn yen(change rate

+65％)

(change rate

+56％)

41

＊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

Initial389,000（+55,000）
334,000
306,000
56,935

Radish Boya

+3,000Daichi62,93537,127

RadishBoya60,000362,000
52,000Daichi44,00040,000Oisix
285,000

270,000+7,00040,189Oisix
202,427

239,837+45,00042

5. New Business Topics

43

License agreement with Disney-Table for Tomorrow
We started the “Table for Tomorrow” project to create the future of children‘sfood with Disney. We plans to develop joint products such as meal kits and foodeducation support services for children.

◆“Table for Tomorrow”
・・Plans for "overwhelmingly enjoyable eating experience"and "problem-solving service / product development" through Disney's world view,
such as joint product and event

Creating products
in which children are actively involved in foodMedium to long term

◆First Effort
・Disney's first official
meal kit<Mickey & Minnie>
Hamburger with plentyof vegetables

In the future,
we plan to jointly create
products on themes such as(1) family-related food(2) learning a well-balanced diet(3) developing taste.

We also provide content
and events starting from food©Disney44

Progress of the alliancewith OOTOYA HD
Regarding the alliance with OOTOYA HD announced in August,We plan to proceed with discussions with the new board following theestablishment of the TOB of COLOWIDE.
In addition, we started a new discussion about collaboration with COLOWIDE.
Discussion status

The story so far
Jul. 10th：

TOB started by Colowide for Ootoya HD✔

Regarding the business alliancewith OOTOYA HD, we plan to proceed withdiscussions with new board members✔

In addition, we started a new discussion
about collaboration with COLOWIDE.

Aug. 14th：

Announced business alliancewith OOTOYA HD
Sep. 8th：

TOB established by Colowide
Nov. 4th：

Approved proposal for appointment
of officers at OOTOYA HD Extraordinary
General Meeting of Shareholders
Nov. 10th：OOTOYA HD's parent company changed
to COLOWIDE45

6. Our initiatives about sustainable46

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.
47

New ORD Green Shift
5 Measures
New ORD Green Shift 5 Measures

Greenhouse gas
reductionin agricultural production
Greenhouse gas
reductionin last-one-miles
Promotion of
deplasticization of
packaging

1

Introduction of
our original green standard

2

Start of green energy
demonstration experimentfor delivery vehicles

3

Further greeningof product packaging

4

Strengthening conventional
efforts to reduce food loss

5

Promotion of salesof up-cycle foods

Food loss reduction48

①Introduction of
our original green standard
We started considering the introduction of our original green standard to reducegreenhouse gases in agricultural production.
We aim to halve greenhouse gas emissions from our production within 5 years.

1 Introduction of our original green standard
Producer of direct
trading✔ We started considering the introduction
Of our original green standard
to minimize greenhouse gas emissions.

✔ We aiming to halve greenhouse gas emissions inagricultural production related to our company inthe next 5 years in collaboration with producers.

✔ We plan to index the greenhouse gas reduction
effect in cultivation from the following
perspectives.
①Materials②Cultivation method③Equipment④Treatment method for non-edible parts⑤Disposal rate of edible parts
49

②Start of green energy demonstration
experiment for delivery vehicles

To reduce greenhouse gas emissions in the last mile, we will starta demonstration experiment for a green energy shift for our last mile vehicle.

2

Start of green energy demonstration experimentfor delivery vehicles✔ Started efforts to reduce greenhousegas emissions of our last mile vehicles
such as Daichi, Radishbo-ya, and Tokushimaru

During this term,
we plan to introduce a green energy fuelvehicle from the Tokushimaru sales truck
and start a demonstration experiment.

50

③Further greeningof product packaging
We aim to change the packaging of our products such as Kit Oisix, fruits andvegetables, processed products, etc.
to more than 50% environmentally friendly materials within the next 5 years

3

Further greening of product packaging✔ We aim to change more than 50% of our products to environmentallyfriendly packaging within the next 5 years◆ From Feb. 2020✔

We changed to biodegradable materials,
including Kit Oisix ingredientsand seasoning bags✔

For fruits and vegetables and processed
products, we will promote the removal ofplastics by simplifying packaging andchanging materials.

We switched the outer bag of all "Kit Oisix"
products to biomass plastic material.
It reduce CO2 emissions by 13 tons annually＋51

④Strengthening conventional efforts
to reduce food loss
⑤Promotion of sales of up-cycle foods

To reduce food loss, we strengthen conventional food loss reduction
efforts and promote sales of up-cycle foods.
4 Strengthening conventional efforts
to reduce food loss

✔ We strengthening efforts to reduce food loss

5 Promotion of sales of up-cycle foods

throughout the supply chain centered on Kit Oisix◆Kit Oisix food loss reduction
Producers✔ Significantly reduce field

loss by relaxing standards
such as size

Food that has been reborn as a new food✔ by adding some ingenuity to theingredients that should be discarded.
It is attracting attention as an effort to
reduce food waste.

✔ We plan to open original upcycling salesite on the Oisix.

Distribution✔ Only 0.2% waste in the
distribution process(Retail supermarket average:
5-10%)✔ We donate food loss fromthe shipping center to thechildren's cafeteria

Home✔ Loss at home is reduced

to 1/3 due to theexhaustion of ingredients▲Upcycling Granola from Snaq. Me(FFF's investee)

52

APPENDIX・DATA SHEET

53

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

54

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
55Trend in No. of Employees

860
735
680

421

163

179

FY2012FY2013192

FY2014210

FY2015FY2017/3

FY2018/3(Consolidated)

FY2019/3(Consolidated)

FY2020/3(Consolidated)

56

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.

57

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

58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

59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

60

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
decisions61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

3 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）
62

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

63

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 rule64

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』

65

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

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

Deliveryon
Requested
date

Purchase◆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 management67

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.

68

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

Sales

1Q

2Q

3Q

FY2020/3

4Q

1Q

2Q

FY2021/3

3Q

4Q

1Q

2Q

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

Operating
Profit

610

1,115

2,265

2,312

543

900

1,597

2,467

2,076

3,976

EBITDA

808

1,513

2,882

3,154

755

1,348

2,381

3,595

2,419

4,679

Net income
Attributable toowners of theparent

537

893

2,533

2,387

270

390

695

790

1,184

2,452

69

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

Oisix

Daichi

Radish Boya

OtherBusiness

FY2020/3

FY2021/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

Sales

6,863

13,76922,19029,6198,308

16,524

26,52235,82911,26523,047

Marginal
profit

970

1,943

3,371

4,036

933

1,868

3,261

4,801

2,367

4,335

Sales

2,769

5,440

8,405

10,902

2,587

5,137

7,936

10,541

3,636

7,094

Marginal
profit

479

960

1,536

1,989

457

885

1,397

1,889

724

1,368

Sales

5,811

9,926

14,34618,028

3,770

7,459

11,41014,980

4,721

9,083

Marginal
profit

1,030

1,765

2,657

3,342

688

1,273

2,001

2,667

899

1,626

Sales

1,482

2,755

4,198

5,793

1,663

3,529

6,383

9,497

3,601

8,522

Marginal
profit

154

290

479

724

256

557

656

846

391

1,038

2,024

3,844

5,779

7,779

1,792

3,683

5,719

7,736

2,305

4,391

Companywide fixed costs,
Goodwill etc

70

Data Sheet：Main KPIKPI trend
FY2019/3

Oisix

Daichi

RadishBoya

FY2020/3

FY2021/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

Subscribers(number)

177,606

186,929

193,461

202,427

221,612226,187

230,393239,837

252,303

274,929

ARPU
（yen）

11,558

11,118

11,522

11,173

11,095

10,634

11,37911,745

13,822

12,986

Price/
purchase
（yen）

6,005

5,973

6,149

6,013

5,884

5,840

6,055

6,166

6,748

6,201

Purchase
Frequency(number)

1.92

1.86

1.87

1.86

1.89

1.82

1.88

1.90

2.05

2.09

Subscribers(number)

44,086

43,77542,07140,18938,51737,532

37,121

37,12743,94144,878

ARPU（yen）

20,247

19,807

20,226

19,171

20,821

21,15922,391

21,604

27,117

24,128

Price/
purchase
（yen）

7,899

8,121

8,573

8,046

8,195

8,292

8,732

8,508

9,234

8,610

Purchase
Frequency(number)

2.56

2.44

2.36

2.38

2.54

2.55

2.56

2.54

2.94

2.80

Subscribers(number)

74,24071,616

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

ARPU（yen）

17,15817,076

18,43917,401

18,202

17,926

19,65918,621

23,18920,884

Price/
purchase
（yen）

5,460

5,616

6,114

5,869

6,055

6,060

6,398

6,206

7,028

6,373

Purchase
Frequency(number)

3.14

3.04

3.02

2.97

3.01

2.96

3.07

3.00

3.30

3.28

71

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.

72