FY2021/3 Results
Explanatory Materials
Oisix ra daichi
2021.5.13

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

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

Table of Contents

1. FY2021/3 Achievements

1-1. Consolidated Financial Results
1-2. Results on Business segment
1-3. Social Topics
2. Growth Strategy with Food Subscription Model
3. Sustainable retail
4. 2022/3 Forecast■ APPENDIX・DATA SHEET2

1-1. Consolidated Financial Results

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

4

Exective summary
ー2021/3 4Q Results
4Q performance summary✓ Although the growing needs for home delivery are gradually settling down,
subscribers and ARPU continued to steadily increase in 4Q as well.

✓ Conducted a large-scale new promotion campaign including TV commercials at
Oisix. Subscribers acquisition progressed more efficiently than planned, andsubscribers increased by about 20,000 in 4Q alone.

Sales✓ Although ARPU has gradually settled down from the peak, it has remained
higher than expected due to the effects of the state of emergency due to the reexpansion of the COVID-19, and increased by about 10% from the same periodof the previous year.
✓ Real businesses such as nursery wholesalers, which were negatively affected,
also achieved sales plans as of 4Q.

EBITDA✓ In addition to the increase in profit due to the increase in sales, themarginal profit temporarily increased due to the efficiency improvement oflogistics and delivery due to the increase in ARPU in 4Q.
✓ The promotion cost was used as planned, centered on Oisix.

5

Exective summary
ー2021/3 Full-year Results
Full-year performance summaryvs Target As of Jan.

Sales 100.0bn yen（+3％）、EBITDA 8.9bn yen（+11％）
Operating Income 7.4bn yen（+15％）、Net income 5.0bn yen（+26％）✓ Due to tight capacity due to COVID-19, new acquisition was suspended in 1Q.
However, subscribers has been steadily increasing since 2Q, and subscribers of 3
major brands has reached a net increase of about 80,000 per year.

Sales✓ ARPU is also gradually settling down after peaking in 1Q.
However, due to the increase in demand for nesting due to corona and service
proposals in line with customer needs, the average YoY increase was about 15%.
✓ The Purple Carrot in U.S. achieved a full-year surplus for the first time due to asignificant increase in subscribers.
✓ Sales of real businesses such as nursery wholesalers declined significantly due
to the impact of corona closures and closures centered on 1Q.

EBITDA✓ Temporary costs such as the construction of a new Oisix Sayama station forcapacity expansion will be incurred.
However, profits increased significantly due to an increase in profits due toincreased sales and a temporary improvement in the segment profit margin due
to an increase in ARPU.
6

FY2021/3 Highlights
Sales：Both subscribers and ARPU have increased significantly.
The plan has been pushed forward and exceeded 100bn yen for the full year.
EBITDA：Significant increase in sales due to temporary improvement in profit margin
due to increased sales and ARPU.

100.06bn yen
Sales

+3%
As of beginning +28%

vsTarget As of Jan.

YoY

Operating
Income+41%

7.46bn yen+15%
As of beginning+149%

vsTarget As of Jan.

YoY

EBITDA+203%

8.90bn yen+11%
As of beginning +102%

vsTarget As of Jan.

YoY

Net income
Attributable toowners of theparent+148%

5.03bn yen+26%
As of beginning+319%

vsTarget As of Jan.

YoY

+537%

7

Actual value Highlights
excluded the effect of temporary increase in ARPU by covid-19

The actual value refers to “temporary ARPU
increase in domestic delivery business（Three major brands）”

Both subscribers and ARPU increased significantly due to the influence of COVID-19. Subscribers area subscription contract, and the accumulation effect will continue from the next fiscal year onward.
On the other hand, ARPU is temporarily increasing due to the influence of COVID-19, and it isexpected that it will return to the level before COVID-19 in FY2022 / 3.
Achieved significant increases in sales and profits even in terms of actual value excluding the
temporary increase in ARPU.

Sales

about

90.0bn yen（actual value YoY

Operating
Income

about

+27％）

4.0bn yen（actual value YoY

EBITDA

+64％）

about

5.4bn yen（actual value YoY

Net income
Attributable toowners of theparent

about

+52％）

3.0bn yen（actual value YoY+280％）

8

The actual value refers to “temporary ARPU
increase in domestic delivery business（Three major brands）”

Consolidated Results Overview-SalesActual value：Sales increased by about 20bn yen due to the effect of increasing subscribers（YoY+27％）
Results：Approximately 30 bn yen sales increase due to ability and the effect of temporary increasein ARPU by COVID-19（YoY+41％）

Sales
about

90.0

100.06（YoY+41%)（YoY+27%)

71.04

39.98

FY
2018/3FY
2019/3FY
2020/3FY
2021/3(actual value)

Results

Actual value

62.42

FY
2021/3(results)*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.

9

The actual value refers to “temporary ARPU
increase in domestic delivery business（Three major brands）”

Consolidated Results Overview-Profits

Actual value：Approximately 1.8 bn yen increase in profit due to the effect ofincreasing subscribers（YoY +52％）
Result：Approximately 5.3 bn yen increase in sales due to the ability and the effect of temporary
increase in ARPU（YoY+148％）

EBITDA

Operating Income

Attributable to owners of the parent

Net income

8.90（bn yen）（YoY+148%)

7.46

about

（YoY+203%)

5.4（YoY+52%)

5.03（YoY+541%)

about（YoY+64%)

FY
FY
FY
FY
FY
2021/3 2021/3
2018/3 2019/3 2020/3(actual value) (results)

FY
FY
FY
FY
FY
2021/3 2021/3
2018/3 2019/3 2020/3(actual value) (results)

0.23

1.10 0.79

Results

0.89

3.0（YoY+280%)

Actual value

1.67

2.46

Actual value

2.24

about

Results

Results

3.08

Actual value

3.59

4.0

FY
FY
FY
FY
FY
2021/3 2021/3
2018/3 2019/3 2020/3(actual value) (results)

10

YoY : Sales
Sales increased by about 30 bn yen from the previous year, mainly due to the effect of sales increaseof 3 domestic delivery businesses and the effect of new consolidation and business growth of Purple
Carrot.

Sales（bn yen）
2

Sales increase:
Other

71.04

(A)
about
10.0

3

Sales increase:
3 home delivery
brands(A) subscribers(B)ARPU

100.06

Purple Carrot
Consolidation

・(A) Increase in subscribers：about10.0bn yen

・(B) Increase in ARPU

：about10.2bn yen

2 Sales increase: Other：about2.3bn yen

Results

1

(B)
about
10.2

about
2.3

about
6.5

１ Sales increase(3 home delivery brands): about20.2bn yen

・EC support/Hong Kong：about2.4bn yen

・Kindergarten wholesale：about▲0.1bn yen

Etc.,

３

Purple Carrot Consolidation：about6.5bn yen
・New consolidation in 1st 1H ：about4.1bn yen(See page 5 for details)

2020/32021/3・Business growth in 2nd 1H ：about2.4bn yen
11

YoY : EBITDA
Mainly due to the increase in profits of the three domestic home delivery businesses and the effects of
new consolidation and business growth of Purple Carrot, the actual value increased by about 5.3 bn
yen from the previous year.

１ Profits increase(3 home delivery brands)：about5.4bn yen

EBITDA （bn yen）
2

Profits
Increase:Other about
0.2

(B)
about
3.4

３
Purple Carrot
Consolidation

(A)
about
2.0

4

about

1.7

8.90

fixed
costs
increase：about2.0bn yen

・(B) Increase in ARPU

：about3.4bn yen

2 Profits increase(Other)：about0.2bn yen
・EC support/Hong Kong：about0.2bn yen

・Kindergarten wholesale：about ±0bn yen

Etc.,

Results

3.59

about
1.2

・(A) Increase in subscribers

３ Purple Carrot Consolidation：about1.2bn yen

・New consolidation in 1st 1H ：about0.4bn yen(See page 5 for details)

・Business growth in 2nd 1H：about0.8bn yen⇒Turn into surplus in 1 year after consolidation1

2020/3４ Companywide fixed costs increase：about1.7bn yen

Profits increase:
3 home delivery brands(A) Subscribers (B)ARPU
2021/3・Costs for COVID-19/Bonus for COVID-19 support
・Costs for Listing to First Section of the TSE・Costs for labor due to business expansion Etc.,

12

Business segment Results
Sales

Oisix

49.86bn yen 8.98bn yen(YoY +39％)

DaichiOther
business(YoY +87％)

13.97bn yen 2.75bn yen(YoY +33％)

RadishBoya

Segment profit(YoY +46％)

17.70bn yen 3.02bn yen(YoY +18％)(YoY +13％)

18.92bn yen 2.33bn yen(YoY +99％)(YoY +176％)

Overview
Sub
scribers

A halt in new subscriber acquisitions
owing to shipping capacity issues
was resolved in 2Q. Full-year
subscriptions grew by 70,000.

ARPU

increased by about 18%YoY
in full-year

Subscribers

Due to increased demand for homedelivery, net increase in all quarters
and about 8,000 people for the full
year

ARPU

increased by about 15%YoY
in full-year

Subscribers

Whilst priority has been on improving
operations, full-year subscriptions
increased by roughly 6,000 on Covid19 driven demand for home delivery.

ARPU

increased by about 15%YoY
in full-year

・ EC support from other companies, overseas
business continues to perform well・Purple Carrot's first half results are newly
consolidated. Also, the first return toprofitability

13

Business segment Results Overview
Sales

100.06bn yenOther

Marginal profit

12.3％

Segment costs

セグメントコスト計

RadishBoya

Daichi

Marginal profit Segment costs

17.1％

82.97bn yen

Marginal profit Segment costs

19.7％

Total
Marginal profit

17.09
Marginal profit Segment costs

Oisix

18.0％

bn yenCompanywide fixed costs,
Goodwill etc

9.63bn yen
Operating Income

7.46

bn yen14

Subscribers (3 home delivery)
Due to the growing demand for home delivery due to Corona, the total number ofmembers of the three brands increased by about 80,000.
417,000
339,000
306,000

RadishBoya62,75156,935
Daichi62,93545,307
37,127

213,000
40,18944,933111,000

111,620

FY2016/3

137,000
239,837
137,359

FY2017/3

169,664

FY2018/3

202,427

FY2019/3

FY2020/3

Oisix

308,899

FY2021/3＊From FY2019/3, the definition of the number ofmembers and ARPU
has been changed to reflectmore appropriate business conditions.

15

1-2. Results on Business segment

16

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 Business17

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 Business18

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Other Business

Subscribers：In 1Q, the impact of suspension of new acquisition due to excess shipping capacity occurred.
However, it recovered after 2Q and increased by about 70,000 a year（YoY+29%）
ARPU: Full-year average ARPU rose roughly 18% on successful capture of new needs bornfrom customers staying home.

No. of subscribers

ARPU※

13,042308,899
（YoY

+29％）

（YoY

308,899

yen+11％）
FY2021/3
FY2020/3

285,168
274,929

Full-year average YoY +18%

252,303

13,822

239,837
221,612226,187

230,393

12,986

13,106

13,042

202,427
186,929

193,461

177,606

11,379
11,095FY2019/3 FY2019/3 FY2019/3 FY2019/3 FY2020/3 FY2020/3 FY2020/3 FY2020/3 FY2021/3 FY2021/3 FY2021/3 FY2021/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

11,745

10,634

2Q

3Q*ARPU=Average Monthly Revenue Per User

4Q

19

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Other Business

Covid-19 has led to changes in lifestyles – home cooking and enjoyment of seasonal events at home haveincreased. Reflecting such changes, subscriptions to Kit Oisix courses where a variety of collaborative and value
propositions have been implemented, increased significantly.

No. of meal kit course subscribers◆Features of Kit Oisix(Includes Oisix subscribers)

222,494（YoY

You can make two main dishes and side

Cumulative

8,000mn meals+48％）✓ dishes in less than 20 minutes.

✓ Uses 5 or more kinds of vegetables
collected from contract farmers.

222,494✓ Reduced food loss because the ingredientsare used up

198,630
185,875

160,112150,093
128,551

134,895

141,292

111,169
94,841
87,232
79,674FY2019/3 FY2019/3 FY2019/3 FY2019/3 FY2020/3 FY2020/3 FY2020/3 FY2020/3 FY2021/3 FY2021/3 FY2021/3 FY2021/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

20

Domestic Delivery business（Three major brands）

Oisix Topics-Promotion

Domestic Delivery business（Other）

Other Business

Subscribers increased by about 70,000 from the end of the previous year due to the growing
needs for home delivery due to COVID-19. In 4Q, we implemented a large-scale promotion
measure including a TV commercial that was broadcast in a limited area.
YoY+70,000

１

308,899

2

Small SKU course✓ Launched a new course "Sakutto

Large-scale
promotion

Oisix" specializing in "easyshopping"

285,1681✓ Achieve membership expansion

274,929

while controlling tight shipping
capacity.

Small
SKU course
252,303２

239,837

Large-scale promotion to a wide range of targets✓ Conducted TV commercials only inthe west Japan.

✓ Development of channels otherthan WEB advertising

2020/34Q

2021/3
1Q

2021/32Q

2021/33Q

2021/3
4Q

21

Domestic Delivery business（Three major brands）

Oisix Topics-Kit Oisix

Domestic Delivery business（Other）

Other Business

Strengthen the value provision of "food education" at home by combining Oisix's
favorite meal data and meal kit manufacturing know-how with the knowledge ofpartner children to learn happily.
■Strengthening the value
provision of food education
Oisix's strengths

Children's favorite meal data

◆ Disney
・「Table for Tomorrow」Project・Providing products and contents
that children are actively involvedin food※コロナ前に実施した際のイメージ

・Knowledge of children's favorite
menus accumulated by "Kodo
Monitor" where children judge
taste
・Creating a mechanism forparents and children to cook

©Disney/Pixar © Just Play, LLC MR. POTATOHEAD & MRS. POTATO HEAD are trademarks of
Hasbro used with permission.©Hasbro. All
Rights Reserved.

◆Benesse
・Offering a 6-month dietaryeducation program
・Aiming to help solve foodeducation issues at home withhelp and manners

22

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）-Purple Carrot(Japan) /Home Restaurant

Other BusinessTo capture changing home dietary needs, new value propositions depend on products/initiatives viewed fromdiverse perspectives. These include “Vegan” which aims to meet growing health needs vis-a-vis Covid-19 and“Home Restaurant” which aims to replicate the restaurant feel at home.

Vegan Kit”Purple Carrot”✔
✔

Seeing good growth under the concept of"Occasional Vegan" which enables users toeasily prepare menus that reflect concerns
about their bodies and the environment.
Awarded the Social Products Award for theease with which “Vegan at Home,” adifficult task, can be realized.

Home Restaurant✔

“Home Restaurant” which started as an initiative tosupport restaurants, has been well received as a
new service for special occasions✔

You can enjoy an exciting experienceat home, such as delivering a menu
table.

◆
Sales+4times

FY2019/3
4Q

FY2021/3
4Q

23

Domestic Delivery business（Three major brands）

Daichi KPIDomestic Delivery business（Other）

Other Business

Subscribers：Achieved net increase in all quarters, partly due to the tailwind of home delivery demand
ARPU：Full-year average ARPU rose roughly 15% on successful capture of new Covid-19 driven healthawareness.

No. of subscribers

ARPU※

23,52045,307
（YoY

+22％）

（YoY

yen

+9％）

FY2021/3
FY2020/3

45,30744,08643,941

43,77544,87844,998Full-year average YoY +15%

42,07140,18938,517

27,11737,532

37,121

37,127

24,12824,35622,391
20,821FY2019/3 FY2019/3 FY2019/3 FY2019/3 FY2020/3 FY2020/3 FY2020/3 FY2020/3 FY2021/3 FY2021/3 FY2021/3 FY2021/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

21,159

2Q

3Q*ARPU=Average Monthly Revenue Per User

23,52021,604

4Q

24

Domestic Delivery business（Three major brands）

Daichi Topics

Domestic Delivery business（Other）

Other Business

We implemented initiatives to enhance planning proposals/product lineup commensurate with thetarget needs of senior couples living alone.
Maintaining high ARPU despite the stabilization of Covid-19 driven home delivery demand.

Seniors × Health2 people × Seasonal Events✔

Capturing target needs via matching ofproduct volume/solutions to empty-nest
households.

✔

Offering a lineup of products that respond tohigh level health consciousness such as the“Connoisseur Seasonal Fish” series andfermented items.

25

Domestic Delivery business（Three major brands）

Radish Boya KPI

Domestic Delivery business（Other）

Other Business

Subscriptions: We have nearly completed our operation improvement phase. In 4Q, we plan tocarry out an acquisition trial ahead of next fiscal year where we look for a net increase.
ARPU：Full-year average ARPU rose roughly 15% reflecting successful service improvementsthat took into account increased time spent cooking at home.

No. of subscribers

ARPU※

62,751（YoY

20,259

yen

+10％）

（YoY

+9％）
FY2021/3
FY2020/3

74,24071,616
66,07062,93561,00962,51559,40058,52861,822Full-year average YoY +15%

62,751

61,51823,18956,93520,88421,00020,25919,659FY2019/3 FY2019/3 FY2019/3 FY2019/3 FY2020/3 FY2020/3 FY2020/3 FY2020/3 FY2021/3 FY2021/3 FY2021/3 FY2021/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

18,621

18,202

17,926

1Q

2Q

3Q*ARPU=Average Monthly Revenue Per User

4Q

26

Domestic Delivery business（Three major brands）

Radish Boya Topics

Domestic Delivery business（Other）

Other Business

Operational excellence activities, which we have been working on continuously, such as
improving the quality of fruits and vegetables and improving the usability of "Pallet", will becompleted in 2021/3.

■Operational excellence efforts①Improvement of fruitand vegetable quality②Strengthen customer
communication✔ Operational excellencecompleted in 2021/3③Review of delivery
form④Improved usabilityof Pallet✔ “From the next fiscal year,
we will build services thatmeet customer needs,
such as “Fuzoroi Radish.

27

Domestic Delivery business（Three major brands）

Overview of Business Segments

Domestic Delivery business（Other）

Other Business① Domestic Delivery business（Three major brands）
Oisix
Daichi
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business
Real Retail Business28

Domestic Delivery business（Three major brands）

EC support

Domestic Delivery business（Other）

Other BusinessAs with the domestic Home Delivery Business, subscriptions saw a healthy increase. Owing to
the benefits of plans that successfully matched the needs of customers, average basket size has
been maintained at levels exceeding levels prior to Covid-19.

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.

number of members has grown steadily, partly due to✔ The
the influence of covid-19, reaching 37,000 in about threenumber of regular members is steadily✔ The
increasing.

years from the start of the service.（As of 31 Mar.2021）
size has also been maintained at high levels✔ Basket
via use of special features utilizing the strengths ofdepartment stores in areas such as overseas andlocal product exhibitions.

addition to Docomo subscriber solicitations,✔ In
we have initiated new customer acquisition
trials at store counters.

29

Domestic Delivery business（Three major brands）

Tokushimaru(subsidiary)

Domestic Delivery business（Other）

Other Business

Partly owing to Covid-19 driven demand for mobile sales channels, total transaction value grewover 50% YoY. Vehicles in operation also posted a record increase of 225 vehicles reflecting a
new business expansion initiative.

Impact scale
FY2021/3 value of circulation

16.51

by yenvs Target +16%
YoY

Development Scale

Number of vehicles
in operation

740

+54%

Number of affiliatedsupermarkets

143

16.51

10.71

740

7.90

5.55
3.60
221
FY2017/3

515
385

303

FY2018/3

FY2019/3

FY2020/3

FY2021/3

30

Domestic Delivery business（Three major brands）

Overview of Business Segments

Domestic Delivery business（Other）

Other Business① Domestic Delivery business（Three major brands）
Oisix
Daichi
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business
Real Retail Business31

Purple Carrot(U.S.)

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

Domestic Delivery business（Other）

Other Business

The tailwind from Covid-19 helped boost both subscriptions and ARPU and allowed for full-year
profitability ahead of schedule. The wholesale business to supermarkets has also successfully
achieved the plan, and we are working to expand the number of stores.

Sales◆Vegan frozen food wholesale business$83mn◆Number of trading stores

YoY

Double$41mn

500
FY2018/12 FY2019/12

FY2020/12✔

Return to profitability in full-year(Jan. to Dec.)✔

Whilst subscription growth has beenstabilizing, at roughly double prior year
levels, large expansion was still realized.
Full-year ARPU has also increased byroughly 10% YoY.

FY2020/12

FY2021/12（Forecast）✔ Frozen food wholesale business is handled at 500
stores of "WHOLE FOODS MARKET", the largest
organic retailer in the United States✔ In the next fiscal year, we will significantly

expand the number of stores we deal withand aim to increase brand awareness.
32Domestic Delivery business（Three major brands）

Hong Kong/Shanghai

Domestic Delivery business（Other）

Other BusinessHong Kong: Reflecting the tailwind from Covid-19, the fiscal year saw significant increase insubscriptions. Achieved profitability in all four quarters.
Shanghai : We are advancing localization of menus and tastes for the meal kit service launchedthis term. Additionally, we will be refining our customer acquisition strategies.

Hong Kong

Shanghai

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

Launched the service in 2017. Deliver products that meet
Oisix product standards by local procurement✔

Achieved profitability in all quarters. The
number of subscribers has increased
significantly, mainly from local Hong Kongers.

✔

Due to the influence of COVID-19, it was
not possible to travel to the site, delaying
the speed of business development✔

Since it will be the service of choice for Hong
Kongers, in addition to the value of "safety",
we will strengthen the appeal of the value ofdeliciousness and freshness.

✔

We are accelerating localization of menus andtastes for meal kit services. Along with menu
advances, we are promoting development ofsales channels that lead to repeat purchases.

33

Domestic Delivery business（Three major brands）

Shop in Shop

Domestic Delivery business（Other）

Other Business

The impact of retail store closures in 1H notwithstanding, solid progress wasmade in 2H. Successful shop meal kit sales patterns that have emerged arebeing implemented at other existing stores.
Impact scale
FY2021/3 Sales■ Established a meal kit sales modelat stores

No. of shops

0.85

bn yen

184
0.85

0.77

0.77

◆Model store daily sales

Daily sales grow
2.5 times

0.72

157

Development of the store meal kit sales model was
finalized.Relative to what has been the biggest issue
facing our customers – that of “menu mannerisms,” weimplemented “a product lineup centered on weekly
menus” as well as “creating a sales floor that conveys
departure from mannerisms.”

184

134
106
FY2020/3 FY2021/3末FY2021/3
FY2019/3 FY2020/3末FY2019/3末Mar.

FY2018/3

FY2019/3

FY2020/3

Mar.

Mar.

FY2021/3

34

Nursery School Wholesale

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

Other Business

Kindergarten Wholesale: Despite the impact of nursery school closures in 1H, 4Q sales
caught up to year earlier levels. In March we changed the service name to "Sukusuku Oisix"
and reinforced the value proposition as a B2B subscription service

Impact scale
FY2021/3 Sales■food education content

No. of trading nursery school

0.91

bn yen545

0.97

Expanded "food education content" that is inhigh demand from many nursery schools andparents.

0.91

0.78

545
0.44

351

In response to demand, we have started theservice in western Japan.

373

Expanded to 46 Nursery Schools
in the Kansai area in just two months ofservice development

231
FY2018/3■ Advance into western Japan

FY2019/3

FY2020/3

FY2021/335

1-3. Social Topics

36

Social Topics①-Healthcare worker support“We Support,” which is a food support platform for medical professionals, has
supplied a total of 560,000 foods Provided to medical institutions, the total
amount of support has reach 0.7 bn yen.

Supportmedical institution
Number of groups

106

A platform that connects medical
institutions with food support companies

Supporters
Participating companies

120

Total amount of support
Total amount of support meals

560,000meals

0.7bn yen

About

About

*4/30時点の実績

37

Social Topics②
We hold online meetings for exchanges between producers and events that connect producers and customers.
We added content unique to online to interact with each other and deepened mutual understanding so that we
could provide better food.

N-1 Summit

Organic Festa

Producers and manufacturers from 264
organizations nationwide participate
online.
"Farmer of the Year Award" held bycustomers to evaluate "deliciousness"

From the traditional Marche-style event
where producers and customers gather,to an online event.
Efforts unique to online such as
connecting with overseas producers

38

Social Topics③
Various efforts to solve social issues were evaluated, and received various evaluations
such as promoting the active participation of women by utilizing Kit Oisix.

Entrepreneur of the Year
This award is given to individuals
who challenge new businessareas and innovate, and evaluates
the value we provide to solve
social issues and the global
universality of our business model.

HAPPY WOMAN AWARD
for SDGs
This award is given to companies thathave contributed to the promotion ofactive participation by developing
products and services that support
women, and is highly evaluated forproviding premium time-saving
experiences such as Kit Oisix.

Japan Resilience Award
This award encourages efforts
toward a resilience society for the
next generation, and the "We
Support" mechanism was awarded
as an advanced initiative for
infectious disease control.

39

2. Growth Strategy with Food Subscription Model

40

Value provided by each brandWe offer food subscription services mainly in Japan, with five main brands:
Oisix, daichi, Radishbo-ya, Purple Carrot, and Tokushimaru.
Main Target

(USA)

Value

Total sales / distribution（2021/3）

Double-income households
busy balancing childcare
and work

Premium time saving

About 50bn yen

Senior couple livingwith two people withhealthy food needs

Easy feeling of health

About 14bn yen

Households
who want to enjoy cooking

Cooking makes
everyday life moreenjoyable

About 18bn yen

Elderly people in their
80s and above

Healthy, comfortableand energetic
You can spend a longtime at home

About 17bn yen

Households
interested in ethicalvegans

Easily and healthyly
enjoy vegan

About 9bn yen*distribution

41

Growth Strategy with Food
Subscription Model
We have a unique growth model for food subscription services,and refine the model while developing it under each brand.

Good producer

Subscribers
Food subscription model

Highly original
product

Platform specializing infood subscriptions

Continuous
business growth

Expansion ofquality supply

Stable demand from subscribers

Satisfying customer
experience

Sharing low-cost
operation marketingknow-how

Improving profitability
42

Growth Strategy with Food
Subscription Model
A "satisfying customer experience" based on food subscription marketing know-how
Achieve continuous business growth through the subscription model by providing

Good producer

Subscribers

Food subscription model

Highly original
product

Platform specializing infood subscriptions

Continuous
business growth

Expansion ofquality supply

Stable demand from subscribers

1

Satisfying customer
experience

Sharing low-cost
operation marketingknow-how

Improving profitability43

① customer experience① Satisfying customer experience-Oisix②Highly original product③Low-cost Operation✔ Evolution of Kit Oisix✔ Stress-free shopping experience① Breadth expansionof our value proposition:① UI improvement for ordering app

・Enhancing menus for"breakfast,” "lunch," and special
events as seasonal activities
are increasingly enjoyed at home.

② Sales floor design in a short time andwith high satisfaction

・Enhancing exposure of vegan(Purple Carrot) vis-a-vis
heightened health consciousness.

✔ Reductionof customer pain points

・Further expansion of value inthe “food education” area

① Consideration of easy-to-understandshipping fees

② Enhancement of functions to
products that are easy to continue
・Extension of sale expiry dates
and expansion of frozen kits.
・Expansion of productsin the low-price range/ large
capacity items.
・Promotion of deplasticizationof materials, etc.

Frozen② improvements to the customer
delivery experience.
③ Eradication of out-ofstock/sold-out situations
caused by the company.
44

① customer experience①Satisfying customer experience-Daichi/Radish✔ Development of services②Highly original product③Low-cost Operation✔

allowing users to readilyexperience healthy foodNew value proposition via"social contribution throughcooking"・Launch of "Irregular Radish," a service specializing
in non-standard agriculturaland marine products.

・Expansion of subscription course"Marugohan" for senior couples living alone.

✔

Product enhancement
to improve cooking skills
・Reinforce support to help enable users tomake full use of all "Palette" vegetables.

45

① customer experience①Satisfying customer experience-Tokushimaru/Purple Carrot②Highly original product③Low-cost Operation(inUSA)✔
✔ Providing products and services
that allow the elderlyto spend a long time in good health・ Development of Tokushimaru's private brand products
・Providing product categories
and unique services that exceed the product lineup
of supermarkets
・Creating a platform to eliminate loneliness

Development of Readyto eat items specializingin shorter hours
・In addition to the Ready to cook kit,
the product category has been expanded
to meet a wider range of needs.

Ready to Cook

Ready to Eat(Respond to shortertime needs)＋46

② Highly original productStable demand from the subscription model enables transactions with excellent producers andproduct development with high originality, realizing high-quality supplies.

Expansion ofquality supply

Good producer

Subscribers

Food subscription model２

Highly original
product

Platform specializing infood subscriptions

Continuous
business growth

Stable demand from subscribers

Satisfying customer
experience

Sharing low-cost
operation marketingknow-how

Improving profitability47

① customer experience② Highly original product②Highly original product③Low-cost Operation

We can provide original products that combine our know-how with various categories
of ingredients such as "Kit Oisix", "Chanto Oisix", "Palette", and "Marugohan".

An example of an original productOriginal subscription product
Proposal by combining various ingredients ofproducers and know-how such as our original
recipes

Traditional vegetables/
irregular vegetables
Proposal of sales floor specializing in rare
traditional vegetables and irregular vegetables

Private brand products
Private brand products with few additives
developed jointly with our producers

48

③ Low cost operation
By building a fulfillment platform specializing in food subscriptions, low-cost operations will bepossible and high profitability will be achieved even in the food retail industry.

Expansion ofquality supply

Good producer

Subscribers

Food subscription model

Highly original
product

Platform specializing infood subscriptions

３

Continuous
business growth

Stable demand from subscribers

Satisfying customer
experience

Sharing low-cost
operation marketingknow-how

Improving profitability49

① customer experience③ Low-cost Operation②Highly original product-EBITDA margin③Low-cost Operation

In 2021/3, the EBITDA margin increased by 1.0pt
even in the actual value excluding the temporary ARPU increase effect.
As of the end of March 2024, we will implement continuous profitability enhancement measureswith the goal of achieving an EBITDA margin of 10% on an ability basis.

EBITDAAim for EBITDA marginof 10% by the end of March 202410%
約5.4bn3.59bn6.1%

3.08bn

4.9%

5.1%

Actual

1.67bn4.1%
2018/3

2019/32020/32021/3（）2024/3末時点（目標）50

① customer experience③ Low-cost Operation②Highly original product- Profitability Enhancement③Low-cost Operation

Aim to achieve the EBITDA margin target
by implementing the following profitability enhancement measures
Profitability Enhancement strategy
Marginal
profitImprove product costs
Product
Costs

Price/
purchase

1. Accelerating the shift to SPA▲1.0pt～▲3.0pt

1-1. In-house meat processing
1-2. Streamlining the Kit manufacturing process
1-3. Synergy with “Toyoichi”

Improve distribution costs
Logistics/
delivery costs

2. Reduce distribution center costs
by starting operationof a new distribution station in Oisix▲1.0ptOther SG&A
costs

51

① customer experience③ Low-cost Operation②Highly original product- Improve product costs③Low-cost Operation

Reduced product and manufacturing costs by promoting in-house production of processing processes.
FY2021 / 3 realizes cost reduction by focusing on in-house production of pork
and efficiency of kit production.

1.Accelerating the shift to SPA
1-1. In-house meat processing
End of 2020/3

About

30％

1-2. Streamlining
the Kit manufacturing process

End of 2021/3

About

70％

Promote in-house production such as
pork cutting work and reduce
processing costs in the manufacturing
process

Reduce manufacturing costs byimproving order forecast accuracy andwork line efficiency in Kit Oisix
manufacturing52

③ Low-cost Operation- Improve product costs
Utilizing the efficient purchasing and product proposal assets of "Toyoichi" integrated in
March 2009, we will sell jointly developed products in just one month after the integration.
We will continue to reduce costs in the marine products category.

1.Accelerating the shift to SPA
1-3. Synergy with “Toyoichi”

×◆”Toyoichi”Model
Toyosu Market

Only one month after the integration, we willsell a new jointly developed product.
Implemented efforts to raise unit prices andreduce costs in the marine products category

Right to buy

25 Fisheries
cooperatives

Unique direct production network

purchasing and product✔ Efficient
proposals that utilize both the market
and direct production networks

53

① customer experience③ Low-cost Operation②Highly original product-Logistics cost reduction③Low-cost Operation

Oisix’s new Ebina Station is scheduled to commence operations in Oct. 2021. Whilst the transition
will likely mean a temporary decline in profit margins in FY22/3, we expect logistical costs
savings to kick-in in the following fiscal year.

2. Oisix new distribution station
starts operation◆New Ebina Station✔ Operation started in October 2021.

■ Cost image
Logistics costs

Apr.2021

Capacity is expected to double
compared to March 2021

Depreciation

Initial cost of
construction

Oct.2021✔ Approximately 3.7 billion capital investment

is expected, but after the integration,
a 1% reduction in logistics costs is expected.

Increase

Increase

Increased logistics
costs due to parallel
operation / switchingwith the old station◆New Ebina Station
Apr.2022

Increased
depreciation costs
for equipment andsystems in thewarehouse

Decrease

Cost reduction by
integrating new Ebina
station54

3. Sustainable Retail55

Fields

Zero food loss

Logi

Home

By leveraging a food subscription model
Aiming to eradicate food loss by embodying "Sustainable Retail"Fields

Logistics

Home

Reduction of foodloss by cooperation
with fields

Reduction of food loss byproviding services that do
not have excess
ingredients

Reduce food loss bycontrolling demand

Aiming for zero food loss
by utilizing the subscription model growth model
56

Zero food loss
-Supply chain overview
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.

FieldsContributing to reducing
food loss in fields bydirectly connecting andcooperating with fields

Logistics
Reduce food loss in thecompany's distribution
process with asubscription model thatmakes it easy to forecast
demand and control
demandHome
Contributing to reducing
household food loss byproviding services that are
not left over at home,such as Kit Oisix and Oisix
properly.

Zero food loss throughout the supply chain57

Zero food loss

FieldsLogi

Home-Fields
In the fields, we actively utilize vegetables that are overcaught due to a good harvest andvegetables that are not uniform. In addition, we have launched a sales floor specializing inupcycling, contributing to the reduction of food loss in the fields.

■Reduction of food loss in fields
Utilization of abundant
vegetables

Utilization of irregularvegetables（Fuzoroi Radish）

Vegetables that have been harvested abundantly
due to weather factors are also used as raw
materials for kits and frozen vegetables.

Opened a sales floor specializing in"various vegetables" generated in the
production process＋
New up-cycle sales floor
Kit Material

Frozen Vegetable

Upcycle products from July 2021
Scheduled to open a specialized
sales floor

58

Zero Food Loss

FieldsLogi

Home-Logistics
In the logistics, a subscription box system that matches the harvest status of the fields
with the needs of the dining table using a unique algorithm has achieved a significantly
lower disposal rate than general food retailers.

■Reduction of food loss in Logistics◆Comparison of food loss rate

5～10％

Original subscription BOX algorithm
that connects the field and thedining table
Matching field harvest conditions and dining tableneeds with our unique data-driven algorithm

FieldsAchieves asignificantly lower
disposal rate than
general food retailers

Home

Crop status data of
4,000 houses
nationwide

400,000 x 52 weeks
purchase data

Original subscription BOX

about
Retail Ave

0.2％

Matching based on our uniquedata-driven algorithm

Oisix
59

Zero Food Loss

Fields

Logi

Home

-Home
At Home, the use of Kit Oisix has reduced food waste itself to one-third.
In addition, it contributes to the reduction of food loss at Homeby composting the generated food waste.

■Reduction of food loss in Home

Kit Oisix reduces food loss

Composting household waste

By using the necessary materials andthe necessary amount, food loss athome is reduced to about 1/3.

Dried kitchen waste is used ascompost for producers.

Table food loss
reduced to about 1/3

NormalKit Oisix60

Achieving carbon neutrality
in the supply chain
Aim to achieve carbon neutral greenhouse gas emissions in the entire supply
chain, including production and delivery, by the end of March 2026
■Carbon neutral goal
100

Aim to achieve carbon
neutrality by the end of
March 2026

0Specific example ofmeasures2022/3

Scorp１/２

Switch power from
Osaki head office /distribution station to
renewable energy

Scorp3Endof March 2026
Done

・Determining
requirements for green
production standards

・Introducing green
production standards
Expanding producers

・Establishing green
production standards

・Effective utilization ofwaste residue

・Further greening of
packaging materials

・EV delivery vehicle

Done

61

4. 2022/3 Forecast

62

FY2022/3 Forecast
The temporary increase in ARPU is planned on the assumption that it will return to the preCovid-19 level.
Sales: The number of members is expected to grow steadily even after Corona, and sales are
expected to increase.
EBITDA: Profit is expected to decline due to the temporary increase in logistics costs associatedwith the construction of the new Ebina station, in addition to the decrease in the rate of return,which had been temporarily rising due to the normalization of ARPU.

Sales

105.00bn yen
vs YoY (actual value)
vs YoY（results）

Operating
Income+17％+5％5.00bn yen
vs YoY (actual value)
vs YoY（results）

+25％
▲33％

EBITDA

6.50bn yen
vs YoY (actual value)
vs YoY（results）

Net
incomeAttributable to
Owners of the Parent

+20％
▲27％

3.00bn yen
±0％
▲40％

vs YoY (actual value)
vs YoY（results）

63

The actual value refers to “temporary ARPU
increase in domestic delivery business（Three major brands）”

FY2022/3 Sale

In a performance-based comparison that anticipates a temporary decline in ARPU due to COVID19, sales are expected to increase by approximately 15 billion yen, mainly due to the effect ofincreasing the number of members of the three domestic brands.

Sales

Temporary increasein ARPU of 3
domestic brands

約●100.06

Home delivery
3 Bland ARPU
increase

about

10.0

about

about

3.0

90.0

about

0.５

105.00

about

11.5

Increased subscriberof 3 home delivery
brands71.05

Results

Actual value

62.43

Other businesssales increase

Sales growth fromthe previous year's ability value+15.0bn yen

about
2019/32020/32021/3（results）

2021/3（actual value）

2022/3(forcast)

2023/3(forcast)

The actual value refers to “temporary ARPU
increase in domestic delivery business（Three major brands）”

FY2022/3 EBITDA

Comparing the ability values ​of ARPU, which temporarily increased due to COVID-19, is expected
to increase profits by about 1 billion yen, mainly due to the effect of increasing the number ofmembers of the three domestic brands.

EBITDA

Decrease inprofits ofotherbusinesses

Home delivery
3 Bland ARPU
increase

Temporary increasein ARPU of 3
domestic brands

about

1.3

8.90
about
about

3.4

Results

Increased subscriberof 3 home delivery
brands2020/32021/3（results）

2021/3（actual value）

about

0.6

6.50

Increased logistics costs
and promotion costs for
Shin Ebina, etc.

EBITDA growth fromthe previous year's ability valueabout
2019/3

0.2

about
2.3

5.4

Actual value

3.59
3.08

0.9

about

about

Increased
fixed costs,
etc.

+1.0bn yen
2022/3(forcast)

2023/3(forcast)

65

The actual value refers to “temporary ARPU
increase in domestic delivery business（Three major brands）”

FY2022/3 Forecast-Sale

Achieved a compound annual growth rate of approximately 19% in the three years after the integration of thethree companies.
In 2022/3, sales are expected to increase by approximately 15 billion yen, mainly due to the effect of theincrease in the number of members in the domestic home delivery business.

Sales
CAGR

105.0

18.9%

105.00bn yen(YoY(actual value) +17%)

About

90.0

71.04

FY
2019/3

Actual value

62.42

FY
2020/3FY
2021/3（actual value）

FY
2022/3*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.

66

The actual value refers to “temporary ARPU
increase in domestic delivery business（Three major brands）”

FY2022/3 Forecast-Profit

EBITDA achieved a compound annual growth rate of about 28% in the three years after the integration of thethree companies.In 2022/3, sales are expected to increase by about 1 billion yen, mainly due to the effect ofincreasing the number of members in the domestic home delivery business.

EBITDA

Operating Income

6.50

bn yen(YoY(actual value) +16%)

5.00

bn yen(YoY(actual value) +19%)

CAGR

bn yen(YoY(actual value) ±0%)
CAGR

39.7%

6.50

3.0

3.00

about

4.0

2.24

2.46
1.10

2019/3

Actual value

Actual value

2020/3 2021/3
2022/3（actual value） (forcast)

about

5.00

5.4

2019/3

3.00

30.7%
about

3.59

Net income

CAGR

28.3%

3.08

Attributable to owners of the parent

2020/3 2021/3
2022/3（actual value）(forcast)

2019/30.79(*2)

2020/3 2021/3
2022/3(actual value) (forcast)*2) The actual value of net income for 2021/3 includes the corporate tax
reduction effect of Purple Carrot, which is approximately 400 million.

67

Business segment Results
Marginal profit Outlook
Sales Outlook

Home Delivery Business

Oisix

57.00bn yen 8.30bn yen
vs YoY (actual value) +29％
vs YoY (results)+14％

Daichi

Other
Business

vs YoY (actual value)
vs YoY (results)

+15％
▲8％

13.00bn yen 2.50bn yen
vs YoY (actual value) +6％
vs YoY (results)▲7％

RadishBoya

FY2022/3 Strategy（Exclude the impact
of goodwill amortization）

vs YoY (actual value)
Vs YoY (results)

vs YoY (actual value)
Vs YoY (results)(YoY ▲10％)・Polishing the enjoyment of cooking andvalue propositions that contribute tosociety, such as the irregular Radish

+13％
▲17％

19.50bn yen1.60bn yen(YoY +3％)

・Promote product development thatmeets target needs, centered onwhole rice, and lead to new acquisition

+12％
▲9％

15.50bn yen 2.50bn yen
vs YoY (actual value) +3％
vs YoY (results)▲12％・ Strengthen new acquisitions
for the full year.Sales increased due
to an increase in subscriber of about
50,000・ The cost is at New Ebina Station
Expect a temporary increase inpromotion costs, etc.

・Steady growth in othercompanies' EC support and out-ofstore sales business
・ Purple Carrot expects sales andprofits of After COVID-19 to
decrease
68

Oisix Capacite Expansion Expected

New Ebina station
started operation

300✔ Doubled capacity

compared to March 2021
Sayama station
expansion✔ Improved distributionNowefficiency by unifying
the new Ebina station

150

100

Gradual increase
due to improvementof distribution efficiency（Satellite centers such as
Sayama will be closed during
FY2022/3）

Gradual increase
due to improvementof distribution efficiency

Mar.2020

Oct.2020

Oct. 2021
69

Subscribers Forecast
for 3 domestic delivery brands
All 3 domestic home delivery brands will move to the re-expansion phase toaccelerate business growth471,000

Subscriber Forecast（+54,000）
417,000
339,000

62,751

306,000
56,935

Radish Boya

Radish+3,00066,000Daichi45,30762,935

Daichi48,000+3,00037,12740,189Oisix
308,899
202,4272019/3239,837

2020/3Oisix
357,000+48,000
2021/32022/3（Forecst）

70

APPENDIX・DATA SHEET

71

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

72

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

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
73Trend in No. of Employees
915
860
735
680

421

163

179

2013/3

2014/3

192

2015/3210

2016/32017/3

2018/3

2019/32020/32021/374

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.

75

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

76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

77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

78

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
decisions79Differences in the assetsof the three brands

How tojoin

How toorder

Logistics
bases

Last OneMile

WEB mainlyWEB/
door-to-door sales

WEB mainly

WEB only

WEB/
Paper catalogs/
TEL

WEB/
Paper catalogs/
TEL

4 placein Kanagawa

4 placesin Hokkaido,
Tokyo, Kanagawa,
Osaka.

1 placein Chiba

Yamato trucks
approximately 99％

Our trucks
approximately 95％（area around
Logistics bases）

Our trucks
approximately 85％（area aroundmetropolitan area）
80

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

81

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 rule82

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』

83

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

84

Kindergarten wholesale
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 management

85

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

Sales

1Q

2Q

3Q

FY2020/3

4Q

1Q

2Q

FY2021/3

3Q

4Q

1Q

2Q

3Q

4Q

16,853 31,720 48,906 64,026 16,265 32,552 52,425 71,040 23,132 47,567 74,790 100,061

Operating
Profit

610

1,115

2,265

2,312

543

900

1,597

2,467

2,076

3,976

6,131

7,465

EBITDA

808

1,513

2,882

3,154

755

1,348

2,381

3,595

2,419

4,679

7,198

8,902

Net income
Attributableto owners of
the parent

537

893

2,533

2,387

270

390

695

790

1,184

2,452

3,900

5,031

86

DATA SHEET：Business Segment Result
Business Segment Result
FY2019/3
1Q（mn yen）

Sales
Oisix

2Q

3Q

FY2020/3
4Q

6,863 13,769 22,190 29,619

1Q

2Q

3Q

FY2021/3
4Q

1Q

2Q

3Q

4Q

8,308 16,524 26,522 35,829 11,265 23,047 37,036 49,863

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 10,761 13,978Marginal
profit

479

960

1,989

457

885

Sales

5,811

9,926 14,346 18,028

3,770

Marginal
profit

1,030

1,765

2,657

3,342

688

1,273

2,001

2,667

899

Sales

1,482

2,755

4,198

5,793

1,663

3,529

6,383

9,497

3,601

Marginal
profit

154

290

479

724

256

557

656

846

391

1,038

1,599

2,320

Companywide fixed
costs,
Goodwill etc

2,024

3,844

5,779

7,779

1,792

3,683

5,719

7,736

2,305

4,391

7,089

9,655

Daichi

RadishBoya

OtherBusiness

1,536

1,397

1,889

724

7,459 11,410 14,980

4,721

1,368

7,012

2,160

8,984

2,751

9,083 13,653 17,704
1,626

2,449

3,023

8,522 13,600 18,922

87

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

2Q

3Q

FY2020/3
4Q

1Q

2Q

3Q

FY2021/3
4Q

1Q

2Q

3Q

4Q

177,606 186,929 193,461 202,427 221,612 226,187 230,393 239,837 252,303 274,929 285,168 308,899

ARPU
（yen）

11,558

11,118

11,522

11,173

11,095

10,634

11,37911,745

13,822

12,986

13,106

13,042

Price/
purchase
（yen）

6,005

5,973

6,149

6,013

5,884

5,840

6,055

6,166

6,748

6,201

6,315

6,215

Purchase
Frequency(number)

1.92

1.86

1.87

1.86

1.89

1.82

1.88

1.90

2.05

2.09

2.08

2.10

Subscribers(number)

44,086

43,77542,07140,18938,51737,532

37,121

37,12743,94144,87844,99845,307

ARPU（yen）

20,247

19,807

20,226

19,171

20,821

21,15922,391

21,604

27,117

24,12824,35623,520Price/
purchase
（yen）

7,899

8,121

8,573

8,046

8,195

8,292

8,732

8,508

9,234

8,610

9,000

8,729

Purchase
Frequency(number)

2.56

2.44

2.36

2.38

2.54

2.55

2.56

2.54

2.94

2.80

2.71

2.69

Subscribers(number)

74,24071,616

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

61,51862,751ARPU（yen）Radish17,15817,076

18,43917,401

18,202

17,926

19,65918,621

23,18920,88421,00020,259Price/
purchase
（yen）

5,460

5,616

6,114

5,869

6,055

6,060

6,398

6,206

7,028

6,373

6,696

6,441

Purchase
Frequency(number)

3.14

3.04

3.02

2.97

3.01

2.96

3.07

3.00

3.30

3.28

3.14

3.15

Oisix

DaichiBoya

88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.

89