Results
Briefing Materials
決算説明資料
FY03/2018 3Q Results
Oisix.daichi Inc.

2018年3月期3Q

オイシックスドット大地株式会社

Farm for Tomorrow, Table for Tomorrow
We provide services that enable a better food life for more
people.
We realize a society where good farmers are rewarded andproud.
We evolve continuously to deliver a sustainable framework thatlinks farm and table.
We solve social issues related to food through businessapproaches.
We create and expand Tomorrow's Food.

Contents

FY3/2018 3Q
Results
Overview

FY3/2018 3Q
SocialActivities

TOPI CS

FY3/2018 3Q
Activities
Overview

Basic Policy for
Future Growth
Strategies

This material is intended to provide an understanding of Oisix.daichi activities, not to solicit investment. Forecastsof Oisix.daichi’s operating results and future performanceare based on information available to Oisix.daichi at the time
this material was draftedand are not guaranteed to be accurate. Actual operating results may differ from the futureoutlooks contained in this material.

Contents

FY3/2018 3Q
Results
Overview

1. FY3/2018 3Q Results Overview

1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・Daichi wo Mamoru Kai (DMK) KPI

1. FY3/2018 3Q Results Overview

1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・Daichi wo Mamoru Kai (DMK) KPI

FY3/2018 3Q Results Overview■ With the addition this term of Daichi wo Mamoru Kai’s (DMK) results, sales were up +75.3% YoY.
Sales & earnings were ahead of plan, driven by Osechi sales & robust subscriber numbers.
■ Achieved Operating Profit forecast for the year, EBITDA was up +58.3% YoY.
Plan
FY3/2017

FY3/2018

FY3/ 2018

＋/ -

YoY

Achievement

3Q Actual

3Q Actual

Plan

YoY

%

Rate

17,11330,00738,00012,894175.3%

79.0%

Operating profit

625

692

670

67

110.7%

103.3%EBITA※1

654

981

1,020

327

150.0%

96.2%

EBITDA※2

810

1,282

1,390

472

158.3%

92.2%

-

1,459

1,570

-

-

92.9%

137.89160.22

175.11

22.33

116.2%

91.5%(Units: ¥mn)

Sales

Excluding extraordinary
factors ※ 3

EBITDA per share (¥ )※1 EBITA＝Operating profit + amortisation of goodwill※2 EBITDA＝ Operating profit + depreciation + amortisation of goodwill※3 Extraordinary factors = One-off merger-related costs (cost of moving HQ, etc.)

6Consolidated Sales & EBI TDA Trends
Robust Oisix new subscriber acquisitions delivered +75.3% YoY growth in sales& +58.3%YoY growth in EBITDA■ Sales■ EBITDA/EBITDA per share

FY3/2018 3Q¥30.01 bn

YoY+75.3 %

FY3/2018 3Q(¥’00mn)(¥'00mn)¥1.28 bn

YoY

+58.3 %

300.1

(¥)

12.8

12

300

10
200
8

171.1

7.3

151.2
135.8

7.8

6

119.7

130.97132.164

8.1

160.22137.89

5.5
94.87

100

2
■ EBITDA● EBITDA per share0

2014/033Q3Q FY3/2015
2015/033Q
3Q 2016/03
3Q3Q
FY3/2014
FY3/2016 3Q
3Q 2017/03
FY3/20173Q
3Q 2018/03
FY3/2018

0
FY3/2014
3Q2QFY3/2018
3Q 2Q
2014/033Q
2Q FY3/2015
2015/033Q
2Q FY3/2016
2016/033Q2QFY3/2017
2017/032018/03※ EBITDA＝ Operating Profit + depreciation + amortisation of goodwill

71. FY3/2018 3Q Results Overview

1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・Daichi wo Mamoru Kai (DMK) KPI

8

FY3/2018 3Q Results Overview by Segment■ Oisix: Sales above plan thanks to robust subscriber growth. Strength in new customer

acquisitions saw an increase in sales of high CoGS trial boxes, which translated into slightly
low marginal profits.
■ DMK: Conservative forecasts translated into above plan sales &marginal profits.
FY3/2018 3Q

Home Delivery Business
Oisix

Company total

Actual Achievement rate

Sales
Marginal profit
Margin ( % )23,9883, 465
14.4

18,481
2, 421
13.1%

77.0%
69.9%
-

Sales
Marginal profit
Margin ( % )10,841
2, 03918.8

8, 5081, 650
19.4%

78.5%
80.9%
-

Sales
Marginal profit
Margin ( % )

3,171
629
19.8

3,017
571
18.9%

95.1%
90.8%
-

Total sales
Marginal profit
Margin ( % )Fixed costs (※1 )Operating profit

38,0006, 13316.1
5, 463670

30,0074, 64415.5%
3, 951694

79. 0%
75. 7%
72.3%
103.6%DMK

Other Business

Plan※1 Includes amortisation of goodwill (included in each business segment in the kessan tanshin &quarterly reports)

91. FY3/2018 3Q Results Overview

1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・Daichi wo Mamoru Kai (DMK) KPI

10

Oisix: Subscriber Trends
There was accelerated growth in subscriber numbers on the back of widening
awareness of Kit courses via media exposure and the growing popularity ofmeal kits.
FY3/2018 3Q

162,891

YoY

Number of subscribers:+18.5 %

162,891

155,827

155,000

147,474

137,359
130,673
124,283

118,124
111,036
107,539

101,079 102,780
91,54093,470

2Q
2Q

3Q
3Q

96,71887,0181Q

FY3/2015
2015年3月期

4Q
4Q

1Q
1Q

2Q
2Q

3Q
3Q

2016年3月期
FY3/2016

4Q
4Q

1Q
1Q

2Q
3Q
2Q
3Ｑ
4Q
2017年3月期
FY3/2017

4Q

1Q
1Q
末

2Q
2Q

3Q
3Q

FY3/2018
2018年3月期

FY年度
target計計画
画※ What are meal kits? : A meal package containing a recipe, pre-prepared ingredients &seasonings for a set number of people.

11

Oisix: ARPU Trends
On strong year-end sales, QoQ ARPU expansion in 3Q saw improvement. But
the healthy acquisition of new subscribers meant an increase in the weight oflower-value monthly orders typical of beginners. YoY contraction resulted.
FY3/2018 3Q

YoY¥11,587 96.9 ％Annual average

12,682
12,227

12,253

12,373

12,514

12,072

11,88912,644

12,402

12,13911,827

12,087
11,586

11,955 11,932

11,587

11,833
11,057

+369

+530
（円）
( ¥)

1Q
1Q

2Q
3Q
2Q
3Q
4Q
2015年3月期
FY3/2015

4Q

1Q
1Q

2Q
2Q
4Q

3Q
3Q

4Q

2016年3月期

FY3/2016

1Q
1Q

2Q
2Q

3Ｑ
3Q
3Q
2017年3月期
FY3/2017

4Q
4Q

1Q
1Q

2Q
2Q

3Q

2018年3月期
FY3/2018※ARPU:Average※ARPU: Average Revenue Per User ( 会員一人当たりの月間売上高）※ 定期会員の購入頻度×購入単価/回※Regularsubscriber frequency of purchase x amount spent/purchase12

Oisix: Frequency of Purchase (FoP) Trends

FY3/2018 3Q

YoY

1.96 xAnnualaverage

98.0 ％

2.10

2.11

2.07

2.10

2.09

2.16

2.15

2.07

2.11

2.02

2.07

2.06

2.00

2.00

2.03

2.03

1.94

1.96

( x)
（回）

1Q

2Q

3Q

5年
3月
2021051年
3月
期期

FY3/2015

4Q

1Q

2Q

3Q

6年
3月
2021061年
3月
期期

FY3/2016

4Q

1Q

2Q

3Ｑ

月期
202
10
71
年73年
月3期
FY3/2017

4Q

1Q

2Q

3Q

280年
13
8月
年期
3 月期
201
FY3/2018

13

Oisix: Average Customer Spend (Basket) Trends

YoY

FY3/2018 3Q¥5,908 98.8 ％Annual
年平均
average

5,882

5,831

6,081
5,806

5,841

5,880

5,975

5,988
5,800

5,878
5,756

5,874

5,701

5,872

5,799

5,908
5,817
5,704

( ¥)
（回）

1Q

2Q

3Q

5年
3月
2021051年
3月
期期

FY3/2015

4Q

1Q

2Q

3Q

6年
3月
2021061年
3月
期期

FY3/2016

4Q

1Q

2Q

3Ｑ

月期
202
10
71
年73年
月3期
FY3/2017

4Q

1Q

2Q

3Q

280年
13
8月
年期
3 月期
201
FY3/2018

141. FY3/2018 3Q Results Overview

1. Consolidated Results Overview
2. Results Overview by Segment
・Summary・Oisix KPI・Daichi wo Mamoru Kai (DMK) KPI

15

DMK: Subscriber Trends
With unit acquisition costs coming under control, subscriber acquisition activity wasreinitiated. Whilst slight, subscriber numbers have begun an upward trend.
FY3/2018 3Q
Number of subscribers:

43,864

YoY

95.0 %

46, 898

46, 62245, 45045, 091

45, 680

46, 438

46,14545, 300

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

FY3/2016

FY3/2017

43, 687

43,86446, 000

2Q

3Q

計画

FY3/2018

FY target

16

DMK: ARPU Trends
ARPU improved QoQ thanks to strong year-end sales. Improvement in the
average customer spend has translated into a YoY ARPU improvement.
FY3/2018 3Q

YoY¥22,209 104.2 ％Annualaverage

20,37921,21620, 346

22, 563

20, 738

21, 088

20, 054

22,20921,30719, 066

19, 884

19, 875

(¥)

2Q

3Q

4Q

1Q

FY3/2016

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018※ARPU : Average Revenue Per User
※Regular subscriber frequency of purchase x amount spent/purchase17

DMK: Frequency of Purchase (FoP) Trends

FY3/2018 3Q

YoY

2.67 x 100.0 ％Annual
年平均
average

2.75

2.72

2.82

2.66

2.72

2.77

2.67

2.67
2.53

2.60

2.58

2.67

（x）

2Q

3Q
2016年3月期

FY3/2016

4Q

1Q

2Q

3Q

2017年3月期

FY3/2017

4Q

1Q

2Q

3Q

2018年3月期

FY3/2018

18

DMK: Average Customer Spend (Basket) Trends

YoY

FY3/2018 3Q¥8,336 104.6 ％Annual
年平均
average

7,704

7,479

7,997

7,655

7,636

7,605

7,524

7,965

8,336
7,525

7,589

7,700

（¥）

2Q

3Q
2016年3月期

FY3/2016

4Q

1Q

2Q

3Q

2017年3月期

FY3/2017

4Q

1Q

2Q

3Q

2018年3月期

FY3/2018

19

Contents

FY3/2018 3Q
SocialActivities

TABLE FOR TWO (TFT)
Oisix donates 3% of revenue to TFT from the sale of TFT-accredited products purchasedby our customers. The proceeds are used to fund meals and the construction of dining
facilities for children in developing countries to eat.
DonatesCustomers

Oisix

3％
Of revenue

Purchases TFT accredited products

Sells TFT-accredited products

Delivers lunches tochildren indeveloping countries*Cumulative 2009 – December 2017 1 lunch = ¥20

21

Hosting of Tokyo Harvest 2 0 1 7 !
Tokyo Harvest 2017, a harvest festival to express our thanks and respect tofarmers, was hosted at the Roppongi Hills Arena. The event was covered bynumerous TV & media companies, including NHK & TV Tokyo.

2017 was the event’s fifth year. A variety of contests that involved eating, playing or learning
about Japanese food culture were held for the enjoyment of all – from parents with smallchildren to visitors from overseas. There were 30 stalls from which to buy food &ingredients.
22

Contents

FY3/2018 3Q
Activities
Overview

FY3/2018 Strategy & Action

1. Takuhai Home Delivery Business Growth Strategy(1) Oisix:Strengthen value of Premium Jitan(2) Osechi sales(3) Daichi wo Mamoru Kai: Reform earnings structures

２. Action to Create Synergy
３. Non-takuhai Business Growth Strategy(1) Real retail (Physical Stores, Wholesale)(2) Overseas business(3) Novelty business4. Tokushimaru

FY3/2018 Strategy & Action

1. Takuhai Home Delivery Business Growth Strategy(1) Oisix:Strengthen value of Premium Jitan(2) Osechi sales(3) Daichi wo Mamoru Kai: Reform earnings structures

２. Action to Create Synergy
３. Non-takuhai Business Growth Strategy(1) Real retail (Physical Stores, Wholesale)(2) Overseas business(3) Novelty business4. Tokushimaru

(1) Oisix:Strengthen Value of Premium Jitan■ What is Kit Oisix?

Recipies and ingredients formain and side dishes in just
20-minutes

Includes recipe forcooking main/side dishes
in just 20-minutes.

Have only what you needin optimal form! Lots ofvegetables to boot!

Encountering a newrepertoire … together.

※ What is Premium Jitan? : Not only do Premium Jitan kits shorten cooking time, they also provide the reassurance, safety &deliciousness of Oisix standards, whilst resolving the stress associated with menu planning, buying ingredients, cooking, waste
reduction, and tidying up. There is a top quality, large, and varied menu of time-saving Premium Jitan kits for more robust meals.

26

(1) Oisix:Enhancing Value of Premium Jitan
Sales have continued to expand on strength of well received new menus.
Course subscriber numbers hit the 66,000 mark, surpassing the seasonal shuncourse figure of roughly 61,000.
■ Kit Oisix: Examples

FY3/2018 3Q

OVER

66,0008 Million
Cumulative shipments(July 2013 – December 2017)50, 000

32,000

1Q

2Q

3Q

FY3/2016

4Q

1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018

Kit Course Subscriber Trends (Unit: people)

27

(1) Oisix:Enhancing Value of Premium Jitan
Jitan Mama, a site that supports working mothers, has opened in a 5 company
collaboration. We are hiring staff to monitor merchandise and services aimed
at busy mothers (and/or fathers).

28

(1) Oisix:Enhancing Value of Premium Jitan
Produced under Ippudo supervision, the ‘Ippudo Supervised! Yasai
Tappuri Veggy-pota Ramen’ meal kit sold out in less than 24 hours!

By popular demand, new shipment made available on January 25th!
29

(1) Oisix:Enhancing Value of Premium Jitan
Second in the ‘Kit Oisix: Cooking for Couples’ series, a warming ‘Hokkori Pork
Stew’, was launched. The series is supervised by Unjash’s Ken Watanabe.

30(2) Osechi Sales: Oisix
Initiatives including extension of selling period and LP* improvements for higher CVR**
resulted in historical highs for unit volumes & sales (55,000 units & ¥790 million,
respectively).
YoY■ Takasago – No.1 for 4 years in a row+ 19.6 % ¥ 790 m(55,000 units)(¥mn )
2015

2016

2017

*1 : L P ・・・・Landing Page
* * 2 : C V R ・・・Conversion Rate - indicator of proportion of purchases made or orders placed by visitors to the site.

31

(2) Osechi Sales: DMK
Launched new 2-tier boxed product Ayame for two-person households.
Posted historical highs for sales & unit volumes.
Sales¥ 37 million（YoY +242％）

Units

1,600

■ New product Ayame, aimed at two-person households. ■No.1 seller Houkasen

32

(3) DMK: Reform of Earnings Structures
Undergoing Catalogue Renewal
Time taken to produce printed
catalogue reduced to

1/3
Accelerated PDCA

Early discovery of successful patterns

SALES UP33

FY3/2018 Strategy & Action

1. Takuhai Home Delivery Business Growth Strategy(1) Oisix:Strengthen value of Premium Jitan(2) Osechi sales(3) Daichi wo Mamoru Kai: Reform earnings structures

２. Action to Create Synergy
３. Non-takuhai Business Growth Strategy(1) Real Retail (Physical Stores Wholesale)(2) Overseas business(3) Novelty business4. Tokushimaru

Action to Create Synergy
Home Delivery
Business

SynergyMarketing• Wider customer base &enhanced customer
acquisition• Greater customer spend(baskets) with crossselling of product• Streamlined promotion
though knowledge
sharing

Procurement& Production

Distribution• Expansion of supplier
networks• Internalization of
production• Collaborative distribution
using proprietary delivery
trucks & Yamato Transport• Distribution diversification– e.g. non-face to face delivery

Other
Operations• Volume discounts withcentralization of accounts

EffectProgress

Sales of DMK merchandiseon Oisix’s website

Completion of non-foodmerchandise menu this FY for
full-fledged roll out next FY
Launched April 2017, 2.7x
sales since start

Improved DMK subscriber
acquisition

Marginal profits improvement

Improved Oisix ARPU

Stabilization of supply
Mitigation of growthbottlenecks.
Improved costs from merging
of manufacturing facilities &increase in scale.

Realization in FY2017
Ongoing process in facilities
includes optimisation of logistics
process

Increased convenience factor
for customers to benefit
subscriber numbers & FoP*

Carrying out trials in FY17 to grasp
customer needs & optimize
collaborative delivery routes forfull-fledged roll out in FY2018.

Reduced packaging material
costs
Reduced settlement & otherfees

FY2017 incremental results:- Material costs (¥20m)- Settlement related (¥30m)- Back office (¥10m)*FoP: Frequency of purchase35

Action to Create Synergy: Special DMK Site at Oisix.com
Introduction of recommended recipes & meal photographs to stimulate demand.
Seeing healthy sales growth.
■ Designated DMK area on Oisix.com■ Sales Trend Since Launch¥37.4 m

4月
Apr

5月
May

6月
Jun

7月
Jul

8月
Aug

9月
Sep

10月
Oct

11月
Nov

12月
Dec
(¥mn)

36

FY3/2018 Strategy & Action

1. Takuhai Home Delivery Business Growth Strategy(1) Oisix:Strengthen value of Premium Jitan(2) Osechi sales(3) Daichi wo Mamoru Kai: Reform earnings structures

２. Action to Create Synergy
３. Non-takuhai Business Growth Strategy(1) Real retail (Physical Stores, Wholesale)(2) Overseas business(3) Novelty business4. Tokushimaru

(1) Real Retail (Physical Stores, Wholesale) : Shop in Shop
Boosted by the addition of DMK, sales were +89.7%YoY. Sales also benefited
from exhibition events and the acquisition of new shop venues including theMiuraya & Inageya stores.
■ FY3/18 Activity example■Sales trend (¥mn)¥594 m

YoY+89.7 %

313
239

142

Oisix corner: Inageya Hachioji Store2015年3月期3Q
FY3/2015 3Q 2016年3月期3Q
FY3/2016 3Q 2017年3月期3Q
FY3/2017 3Q 2018年3月期3Q
FY3/2018 3Q

DMK wholesale business38

(1) Real Retail (Physical Stores, Wholesale) : Shop in Station
Oisix’s new shop in-station format (Ecute Omiya): Altered layout maximizes Kit
visibility and via POP, impart a sense of straight from the cooker pop & sizzle.
■

Shop layout changed from this...

...to this!

Weekly Kit sales have doubled since the change of layout!
39

(2) Overseas Business
In September 2017, Oisix China was incorporated and established.
Restricted services launched in Nov. Full-fledged roll out planned for FY2018.
■ 1st： Limited Monitoring Sales to Japanese Expats■2nd： Launch of Services to Chinese Locals (2018)

Email solicitation made to Japanese expats - 50 sets sold out in 2 days!
40

(3) Novelty Business
Carrying on from the summer, taking autumn orders for ‘Kin Mugi 75% Sugar-off’.
Campaigns to be repeated in 2018 summer & autumn. Foreseeable expansion
could include Premium Malts, ALL-Free and other Suntory products.

Ran the first ‘Kin Mugi 75% Sugar-off’ autumn campaign
41

FY3/2018 Strategy & Action

1. Takuhai Home Delivery Business Growth Strategy(1) Oisix:Strengthen value of Premium Jitan(2) Osechi sales(3) Daichi wo Mamoru Kai: Reform earnings structures

２. Action to Create Synergy
３. Non-takuhai Business Growth Strategy(1) Real retail (Physical Stores, Wholesale)(2) Overseas business(3) Novelty business4. Tokushimaru

Tokushimaru: Expansion of Mobile Sales Infrastructure for“Shopping Refugees”

Alliances are underway with 12 supermarket operators including major
operators Inageya & Comodi Iida. Together, they manage a total of 218 stores,
mostly in the Kanto region.

43

Tokushimaru: Number of Vehicles in Operation
Positive effects of becoming a subsidiary – e.g., management support andstronger staffing - translated into +79 vehicles or +41% YoY growth.
YoY

268

+41 %

243
221
205
189

As at end of December 2017, rolled out in

168

41

145

108
92

Prefectures

72
50

3

4

5

6

6

7

9

18
9 12

27

34
(No. vehicles)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

FY3/2013

FY3/2014

FY3/2015

FY3/2016

FY3/2017

FY3/2018

44

Tokushimaru : Total Transaction Value
A steady rise in the number of vehicles in operation saw FY3/18 3Q totaltransaction value* increase to Y1.52bn, +49% YoY.

1,524
1,310

YoY

1,224

+ 49 %

1,022 1,035
852
698
512
438
314
232

6

11

16

19

25

1Q

2Q

3Q

4Q

1Q

FY3/2013

31

36

37

56

79

2Q

3Q

4Q

1Q

2Q

FY3/2014

118

152
(¥mn)

3Q

FY3/2015

4Q

1Q

2Q

3Q

FY3/2016

4Q

1Q

2Q

3Q

FY3/2017

4Q

1Q

2Q

3Q

FY3/2018*Total transaction value = Value of goods sold (Oisix.daichi revenue = royalties from each vehicle)
45

Contents

TOPI CSTOPICS

1. Business and Capital Alliance with NTT DOCOMO
2. Business Combination of Radishbo-ya Co., Ltd.

TOPICS

1. Business and Capital Alliance with NTT DOCOMO

2. Business Combination of Radishbo-ya Co., Ltd.

１．Business Alliance with NTT DOCOMO
Food Home Delivery Market Strength• The meal kit market, which is looking buoyant in the USA, isgaining traction in Japan (approx. Y200bn, source:Nikkei Trendy)• Growth in home delivery market from further developments inwomen entering the work force (approx. Y2trn, source: Yano
Research Institute)• Possibility of further market expansion from the entry of
traditional industry players and/or large capital-rich overseas
players.

Oisix.daichi assets
DOCOMO assets• Database of approx. 75 million
customers• Overwhelming brand power• ABC Cooking Studio• dPOINT Collaboration• AI Agents to attract customers

×
Meal Kit
Exclusive EC site

• Network of excellent
producers.
• Safe & secure brand• Own food home delivery
business infrastructure• 3 temperature zone
warehousing• Production facilities• No.1 in Meal Kits
• Network with homedelivery major Yamato
Transport49

１．Capital Alliance with NTT DOCOMO
Capital alliance with DOCOMO through 3rd-party allocation.
Takes 3% stake through 3rdparty allocation (¥630mn)

Plans to take a board seat

Meal Kit EC(Collaborative business)
Funds procured to be used
for investments in production
plant equipment & IT
systems, etc.

59

TOPICS

1. Business and Capital Alliance with NTT DOCOMO

2. Business Combination of Radishbo-ya Co., Ltd.

2．Business Combination of Radishbo-ya (RB)DOCOMO transfers its 100% holding in RB to Oisix.daichi on February 28, 2018.
November 30, 2017

February 28, 2018
Transfer 100% of RB shares¥1bn (Cash)100%

Waiver ofindebtedness

100%

Net Assets
0

Net Assets

Recovery of
positive balance¥△271mn52

2．About Radishbo-ya

Company name

Radishbo-ya Co., Ltd.

Representative Director

Toshinari Kunieda (Representative Director & CEO)Year of establishment

May 17, 1988

Major shareholders

NTT DOCOMO, Inc. 100％

Business Description

Delivery service of organic, low-chemical & non-additive foods.

Places of business

Headquarter (Tokyo), Hokkaido Center, Tohoku Center, Tokyo
Area Center, Kanagawa Center, Chubu Center, Osaka Center

No. employees

Full time (including contractors) 240, part-time/temporary 162※as at end March, 2017

No. farmers, etc.

Approx. 2,400

53

2．Aim of Business Combination of Radishbo-ya
Aim to utilise and make efficient both parties’ platforms to optimise
stakeholder value & increase corporate value.

/ Radishbo-ya• Share the marketing know-how• Expand the network of producers• Increase strategic options for delivery centers• Reduce costs through economies of scale• Obtain human resources, strengthen the organizations

Customer

Producer• Increase delivery options• Enable the purchase of multiple
brand merchandise• Expand sales channels• Improve operational productivity• Reduce logistics costs

Enhancement of Corporate Value
54

2．Radishbo-ya New Management Structure
Kohey Takashima (Oisix.daichi CEO) to be appointed Representative Director and CEO
at an extraordinary general shareholders’ meeting on February 28, 2018.

Representative
Director & CEO

Kohey Takashima

Directors

Chiaki Nozawa

Keiji Fujimaki

Auditors

Kohei Matsumoto

Shinsuke Hase

（DOCOMO）（Oisix.daichi)（Current）

Yusuke Tsutsumi（Oisix.daichi)（Oisix.daichi)

Radishbo-ya Co., Ltd.

55

2．Schedule of Business Combination of Radishbo-ya

January 30, 2018

⚫ Announcement of Business Combination

February 28, 2018

⚫ 100% Share transfer from DOCOMO⚫ Radishbo-ya moves to new management structure

March 1, 2018～⚫ Consolidate Radishbo-ya’s business results(FY3/2019)56

Contents

Basic Policy for
Future Growth
Strategies

Basic Policy for Future Growth Strategies

Food Delivery Business:
Building the Platform for GrowthConventional operations among each home delivery brandPreviously, each functions as its own home delivery brand and operates
independently.

Subscription Model

Subscription Model

Subscription Model

EC Marketing

Catalogue Sales

Catalogue Sales

Settlements

Proprietary Delivery
Network

Proprietary Delivery
Network

Materials

Settlements

Settlements

Manufacturing
Facilities

Materials

Materials

3 Temperature zone
Logistics Center3 Temperature zone
Logistics Center3 Temperature zone
Logistics Center

Quality Control

Quality Control

Quality Control

Producers

Producers

Producers

MarketingFulfilment

59Food Delivery Business: Building the Platform for Growth
Going forward, creation of individual platforms with unique/common functions allowing forknowhow & infrastructure sharing. Promotes rationalization/social problem-solving.
SocialIssuesGrowing needfor time-saving
solutions

Growing healthconcerns

Concern for asustainable
society

Growing needfor time-saving
solutions

Growingdemand for safe
& secure food

Meal Kit EC

Hong Kong

Increasing
number of
shopping
refugees(w/ DOCOMO)

China

Marketing Platform

⚫
⚫
⚫
⚫

Subscription
CRM
UI/UX
Web promotion, etc.

Fulfilment Platform

⚫
⚫
⚫
⚫
⚫

Producers
3 temperature logistics centers
Food processing/manufacturing facilities
Delivery network/facilities
Quality control, etc.
69

Benefits of Platform Approach

Marketing Platform
Subscription/Promotion⚫ Development of subscription model to create a solid customer base & stable income streams⚫ Repeat marketing using access logs, purchase analysis & improved UI/UX, etc.
⚫ Improved customer acquisition rates through use/promotion of web marketing⚫ Optimisation of customer acquisition methods using catalogues

Fulfilment Platform
Procurement/Production⚫ Stabilised supply through expanded supplier network⚫ Increased productivity through sharing operational knowhow of 3 temperature-zone food centers⚫ Merged processing & production facilities for increased productivity, lower costs & improved quality

Quality Control⚫ Unified product selection & quality checking functions to resolve differences in brand quality &reduce costs

Materials⚫ Unification of packaging materials to reduce costs & improve quality

Logistics⚫ Building of an effective delivery network using Yamato Transport, our own trucks & regional facilities⚫ Increased convenience for customers through delivery method diversification

Settlement⚫ Unification of vendors for volume discounts

61

Farm for Tomorrow, Table for Tomorrow
We provide services that enable a better food life for more
people.
We realize a society where good farmers are rewarded andproud.
We evolve continuously to deliver a sustainable framework thatlinks farm and table.
We solve social issues related to food through businessapproaches.
We create and expand Tomorrow's Food.