FY2015 Result Report(April 1, 2015 – March 31, 2016)
May, 2016
Oisix Inc

Disclaimer
This material was prepared based on information available and views held at the time it was
made. Statements in this material that are not historical facts, including, without limitation,plans, forecasts and strategies are “forward-looking statements”. Forward-looking statements
are by their nature subject to various risks and uncertainties, including, without limitation, adecline in general economic conditions, general market conditions, technologicaldevelopments, changes in customer demand for products and services, increased competition,risks associated with international operations, and other important factors, each of which
may cause actual results and future developments to differ materially from those expressedor implied in any forward-looking statement.

1

FY2015 Highlights◼ 15 consecutive years of sales record
Results

Ｅ-Commerce（Oisix.com)

・Sales
20,158 million yen (111.6% YoY)
・Recurring Profit 806 million yen (120.6% YoY)
538 million yen (155.1% YoY)
・Net Profit◼ Number of Subscribers: 111,036 (114.8% YoY)
・Increase in the number of subscribers for the KitOisix,
the premium ready to make meal package◼ Capital investments for the new processing plant
・To meet the demand for the KitOisix◼ Overseas (Oisix Hong Kong)
・Increase in Sales by 137% YoY, and turned profit for the yearly basis

Other
Business◼ Store Business・Increase in the number of "Shop-in-Shop“, an island retail spacein other retail stores◼ Novelty
・Adopted for Suntory's "Kinmugi Off" for the second consecutive years

21. FY2015 Results

2. FY2015 Summary of activities
3. FY2016 Strategy

3

1. FY2015 Results

2. FY2015 Summary of activities
3. FY2016 Strategy

4(1) FY2015 Results⚫ Sales increased by 111.6% YoY to 20.1 billion yen due to increase in the number of subscribers.
⚫ Recurring profit increased by 120.6% YoY to 806 million yen, despite fare increase by Yamato
Transport by approximately 100 million yen.
⚫ Net profit increased by 155.1% YoY to 538 million yen.

(mil yen)
Sales

FY2014FY2015Plan

FY2015ResultYoY

vs Plan

18,06020,00020,158111.6%

100.8%

Operating Profit

648

750

774

119.3%

103.2%

Recurring Profit

668

770

806

120.6%

104.7%Net Profit

347

480

538

155.1%

112.2%

5

(2) Trends in Sales and Profit⚫ Record high Sales surpassing 20 billion yen.
⚫ Record high Recurring Profit of 806 million yen.
◼ Sales◼ Recurring Profit

20,158(million yen)

Growth in 15
consecutive years(million yen)

Record highprofit806

6

(3) E-Commerce Business - Major Indicator
1. Number of Subscribers
The number of subscribers increased from 96,718 to 111,036 YoY, achieving the target.

114.8% YoY

FY2013

FY2014

Target（110,000）

FY2015

7

(3) EC Business - Major Indicator
2. ARPU (Average Revenue Per User)
The overall ARPU was down 4.2% YoY due to slight decrease in the purchase frequency
and slight increase in the purchase price per order.
（yen）

95.8% YoYFY2013

FY2014FY20158

(3) EC Business - Major Indicator
2-1. Purchase Frequency
Decline in purchase frequency YoY was due to an increase in family users who tends
to cancel orders during holidays. This was resulted from increase in KitOisix users.
（number of purchase per moth）

93.6% YoY

Increase due to sales promotion effort on AllYou-Can-Drink milk services
Increase in demand before theconsumption tax hike

FY2013

FY2014FY20159

(3) EC Business - Major Indicator
2-2. Purchase Price per Order⚫ Increase in Purchase Price per Order YoY was due to an improvement in usability
on both PC and smartphones.
⚫ Price gap between PC and smartphones has continued to narrow due toimprovements in User Interface on smartphones.
（yen）

102.3% YoY

Increase in 3Q every year due toyear end demand for Christmas
and New Year

FY2014FY2014FY201510

1. FY2015 Result

2. FY2015 Summary of activities
3. FY2016 Strategy

11

FY2015 Summary of activities

Strengthening
the basis for
growth(1) Capital investments in business expansion(2) Growth of core E-Commerce business

Organic
Growth(3) Contribution of non-E-Commerce businesses to revenues

Activities for
FutureDevelopments(4) Research in the Food/Health Care domain12(1) Capital investments in business expansion
Cost reduction for the KitOisix through theconstruction of the new processing plant13

(1) Capital investments in business expansion⚫ The new plant in May 2015 to expand the production capacity for KitOisix.
⚫ Achieved cost reduction by re-designing the production process.
◼ New processing plant in May 2015

◼ Cost ratio of KitOisix
Changes from 2014/Q1 measured at 100

Processing Plant (1)BeforeRapid Growth

Meat

Delicatessen

Processed fish

Salad

▼Commenced operation at
the new plant in May 2015

100

Kit

Products suited for the line-process such as
KitOisix are processed in the new plant

After

Processing Plant (1)New Processing Plant (2)85Delicatessen

Meat

Processed fish

Salad

Kit

14

(2) Growth of core E-Commerce business(1) Growth in the number of KitOisix course members(2) Increase in purchase price per order due to improved
User Interface of smartphones

15

(1) Growth in the number of KitOisix course members⚫ Enhanced services in response to time-saving needs from women taking active roles insociety.
⚫ Members surpassed 30 thousand as a result of new products and services.
◼ About KitOisix◼ Number of KitOisix Members(members)

32 thousand- Oisix safety standards- Only takes 20 minutes toprepare main and side
dishes- Seasonal vegetables◼ Main initiatives in FY3/2016

Extended
expiration dateto 5 days

Salad Kit

Frozen Kit

FY2014FY201516

(2) Increase in purchase price per order due to improved UI of smartphones⚫ Increase in purchase price per order via smartphones due to:• improved navigation system, etc.
• improvements in product/featured images offering sizzling effects◼ Improvements in the UI of smartphones◼ Difference in purchase price per order between PC
and smartphones (PC- Smartphones)（yen）

Difference in halfin 2 years
to 334 yen(quarterly average)• Improvement of product categories• Improvement of the navigation system• Clarification of the shopping flow
• Promotion of browsing through the footer navigation• Reduction of guiding lines for cancellations• Improvement of product/featured images

FY2014FY201517

(3) Contribution of non-E-Commercebusinesses to revenues
Hong Kong business turned profit for the
yearly basis(2) Improvements in profitability in the store
business(3) Strengthening of the novelty business(1)18

(1) Hong Kong business turned profit for the yearly basis⚫ Sales grew stably through the introduction of subscription services.
⚫ A local subsidiary was established to expand the product lineup and strengthen the
promotional activities.
◼ Oisix Hong Kong website◼ Turned prof for the yearly basis

423

137%YoY

million yen

FY2014FY201519

(2) Improvements in profitability of the store business⚫ The number of “Shop-in-Shop” stores grew from 16 to 25.
⚫ Profitability has improved by approximately 60 million yen, supported by efforts toimprove the earnings structure of Kichijoji store.
◼ Number of “Shop in Shop” stores

X 1.5◼ Kichijoji store

25

16◼ Improvements in earning structure of Kichijoji store

FY2014FY2015• Improvements in the floor lay-out• Improved efficiency of in-store operations through theconsolidation of the delicatessen processing base
• Reduced disposal losses by improvements in forecasts on
demand20

(3) Strengthening of the novelty business⚫ Brand awareness has increased with the adoption of our products as a novelty bymajor clients that advertise their products nation-wide.
◼ Adopted as a novelty for "Kinmugi Off“ fortwo consecutive years◼ List of major clients in FY2015• Panasonic Corporation• Fujicco Co., Ltd.
• Kewpie Corporation• Ajinomoto Co., Inc.
• Nippon Flour Mills Co., Ltd• Kellogg’s• Daiwa House Industry Co., Ltd・・・・・etc

21(4) Research in the Food/Health Care domain
Started trial sales of food and health care products

22Started trial sales of food/health care products⚫ Trial sales for functional foods and highly nutritious vegetables and fruits.
⚫ Trial sales for products not containing specific allergens, as well as products having
low amount of carbohydrates.
◼ Highly nutritious vegetables◼ Gluten-free◼ Sugar-free23

1. FY2015 Result

2. FY2015 Summary of activities
3. FY2016 Strategy

24

FY2016 Strategy (1/2)

VisionGrowing into the dominant top player in thearea of “Food” and “Subscription Commerce”

25

FY2016 Strategy (2/2)

Strategy(1) Evolution of Oisix.com(i) Empowerment of the premium time-saving service(ii) Enhancement of brand awareness(iii) Strengthening of food/healthcare service(2) Evolution of the subscription platform(3) Expansion into the business for seniors/shopping refugees

26

FY2016 Strategy (2/2)

Strategy(1) Evolution of Oisix.com(i) Empowerment of the premium time-saving service(ii) Enhancement of brand awareness(iii) Strengthening of food/healthcare service(2) Evolution of the subscription platform(3) Expansion into the business for seniors/shopping refugees

27

(1) Evolution of Oisix.com(i) Empowerment of products related to the premium time-saving service⚫ Evolution of the KitOisix service.
⚫ Introducing other products related to the premium time-saving service.
◼ Other premium time-saving products◼ Evolution of KitOisix
Empowermentof the chef's
menu

Collaboration with chefs
from Michelins, famous
restaurants, and cooking
experts

Upgrading thequality of theBest-if-eatenwithin-fivedays Kit andFrozen Kit

Additional ingredients forenhancement of variation

Empowermentof the Kit foreventsCollaboration with
Halloween,
characters and local
governments

Cut vegetables
Carrots

Potatoes

Tomatoes

Italian Mix Veges

Fruit Cake

Fruit Jello

Frozenvegetables

Fruit desserts

(1) Evolution of Oisix.com(ii) Enhancement of brand awareness⚫ As we accelerate the realization of our corporate philosophy, "Rich varieties offoods for the maximum number of people," we have decided to change the logo toreflect the anticipated scale of business where sales will have increased from 20
billion yen to 100 billion yen.
◼ Renewal of the brand logo

◼ New logo

◼ Joint design with Mr. Manabu Mizuno• Representative of the Good Design Company• Distinguished Associate Professor at Keio
University• Actively working on a brand creation, logos,
packages, shop design, and consulting• Works include "iD" of NTT Docomo, Kubara
Honke, Kayanoya, Kumamon, Nakagawa
Masashichi Shoten, etc.

(1) Evolution of Oisix.com(ii) Enhancement of brand awareness⚫ Promotion of the PB products to enhance the communication of the concepts.
⚫ Renewal of “Shop-in-Shop” stores and expansion of the sales of the PB products.

◼ Sales ratio of the PB products◼ Brand awareness in “Shop-in-Shop”*Percentage of PB products in the sales of processed products

27.7％
Approx. X 2.5

11.3％* Image of the renewal
FY2014FY201530

(1) Evolution of Oisix.com(ii) Enhancement of brand awareness⚫ Holding of events to express thanks to food producers or give awards to excellent
farmers, thereby facilitating branding based on fruit and vegetables.
◼ Tokyo Harvest 2015
An event to deliver the messages of respect and thanks fromthe people of Tokyo to farmers nationwide.

◼ N-1 Summit 2016
An opportunity for excellent farmers to come together andinspire each other. A variety of activities were promoted.
Awards were given to food producers who had produced
items most highly regarded by customers.

31

[Reference] Supporting activities for Kumamoto Earthquake⚫ In addition to providing temporary support, developed plans to continue supporting
producers and victims of the earthquakes by increasing transactions and through cooperationon the branding of the products.
◼ Delivered messages from customers to farmers◼ Supplied vegetable juice and water• Provided six tons of waterand 3,000 cans of Vegeel(vegetable juice) to
support victims incollaboration with local
farmers on April 18.

Delivered 300
messages from
customers to
Mayumi Farm,a producer of
Tatsuya no
Ninjin (carrots),
on April 23.

• Delivered 3,400 cans ofVegeel to eightorganizations that help
pregnant women andmothers with small children.

◼ Continued support activities through the purchase of products (eat & send)• Support disaster-stricken areas through thepurchase of products.
• Launched pages on the web featuring products
for farmers who suffered damages.
32(1) Evolution of Oisix.com(iii) Strengthening of food/healthcare⚫ Reinforce the sales of highly nutritious vegetables and processed products⚫ Considering the establishment of the new healthy course in addition to the enhancement of
the range of health-conscious products.
◼ Kale• Sales promotion of kale, which is gaining a lot of attention as
healthy food in Europe and the United States.
• Sale as the Salad Kit and collaborations with ramen noodle
houses.

◼ Cold Press Vegetable (beverage)• Healthy beverage made from juice of vegetables and fruitthat are squeezed at low temperature and low speed,
ensuring that the nutrients remain intact.
• Popular among celebrities and models in Europe and theUnited States.
33

Strategy(1) Evolution of Oisix.com(i) Empowerment of the premium time-saving service(ii) Enhancement of brand awareness(iii) Strengthening of food/healthcare service(2) Evolution of the subscription platform(3) Expansion into the business for seniors/shopping refugees34

(2) Evolution of the subscription platform⚫ Expansion and strengthening of collaboration with other business partners.
⚫ Assigned Yusuke Tsutsumi, General Manager of EC Business Division, as the responsible
person for collaborative business.

◼ Existing main companies in collaboration◼ Yusuke Tsutsumi drives collaborative business

JV

Alliance

Fulfillment andmarketingsupport• Yusuke Tsutsumi has undertaken assignments as a Director since
the foundation of the Company.
• He has driven the growth of EC Business, developing it into anundertaking in excess of 18 billion yen.
35

Strategy(1) Evolution of Oisix.com(i) Empowerment of the premium time-saving service(ii) Enhancement of brand awareness(iii) Strengthening of food/healthcare service(2) Evolution of the subscription platform(3) Expansion into the business for seniors/shopping refugees36

(3) Expansion into the business for seniors/shopping refugees⚫ Tokushimaru Inc., a company conducting a moving supermarket business targeting
seniors/shopping refugees, to be a subsidiary company.
⚫ Starting to develop business for customer segments that are difficult to reach with internet.

◼ Tokushimaru Inc.

◼ Monthly distribution amount（million yen）
225

• Started operation in Tokushima in 2012
• Mobile supermarket business with more than
100 vehicles nationwide• Main customers are in their 70s to 80s andare shopping refugees• Visit customers' home with vehicle loadedwith 1,200 merchandise in 400 categories

200

200

175

150

125

100

75

50

25

2016年2月

2015年12月

2015年8月

2015年10月

2015年6月

2015年4月

2015年2月

2014年12月

2014年10月

2014年8月

2014年6月

2014年4月

2014年2月

2013年12月

2013年8月

2013年10月

2013年6月

2013年4月

2013年2月

2012年12月

2012年8月

2012年10月

2012年6月

2012年4月

0
2012年2月◼ Mobile supermarket “Tokushimaru”

37

Investment Plan
(1) Strengthening the functionality/stability of thesubscription platform(2) Expansion of Oisix Dining Center (processing plant)38

(1) Strengthening the functionality/stability of the subscription platform⚫ Investments in systems to improve the level of services and to prepare for business growth.
⚫ Expand DB servers to support the business structures that are becoming more complex on
the Company's platform.

◼ Outline of the strengthening of functionality

Personalization◼ Strengthening of stability• Functionality to recommend
personalized sets of shopping menu
based on the behavior/tastes ofcustomers

Own businessHong Kong

Reduction inlead-time• Reduction of number of days fromorder to delivery
Collaborative business

Overseas• Integration of the system for Hong
Kong website, currently managed
separately, in line with thedevelopment of overseas operations

Contracted service
business

Planning to expand DB servers to be prepared for further
expansion, increase businesses, and improve stability39

(2) Expansion of Oisix Dining Center (processing plant)⚫ The dining center was constructed to increase the production capacity by fourtimes, while shipments already increased by double.
⚫ Further expand capacity as we focus more on the premium time-saving services.
◼ External view of Oisix Dining Center(processing plant)◼ Growth of monthly shipments of KitOisix※Measuring shipments in March 2015 at 100

rew twofol
Shipments
doubled after
expansion
nstruct

213

１００* Constructed in the neighborhood of Ebina Distribution
Center (Oisix Station) in 2015
FY2014FY201540

Mid-term Growth Strategies⚫ Focus on the expansion of the subscription commerce platform while developing theexisting own/collaborative/contracted business.
⚫ Also challenge to expand the newly launched business (with Tamahiyo, subscription
service to mothers) and the acquired business (Tokushimaru-mobile supermarket).
PremiumOwnbusiness

Contracted

FY2015
Total distribution amountCollabor
ative
businessOwnbusiness

19.5

Hong Kong

billion yen/year
Collabor
ative
business

20’s

Own
business* Excluding the store and corporate business

New

30’s

40’s

50’s

60’s

70’s~

FY2018
Total distribution amountNew
Own
business

40
billion yen/year* Excluding the store and corporate businessConvenient41

Forecasts for the FYE March 31, 2017
⚫ Aiming at 23 billion yen Sales by accelerating the growth rate.
⚫ Also to prepare for the growth in the following years.

FY2014
Result

FY2015Result

FY2016
Plan

YoY

18,06020,15823,000114.1%

Operating Profit

648

774

820

105.9%

Recurring Profit

668

806

830

102.9%Net Profit

347

538

580

107.7%(million yen)

Sales

42

Target number of Subscribers

YoY
112.5%FY2012FY2013

FY2014FY2015FY2016(Plan)
43