FY 3/2020 3Q Results
Explanatory Materials

Oisix ra daichi
February 13, 2020

Table of Contents

1. FY 3/2020 3Q Achievements
2. Results on Business segment
3. ESG Topics
4. APPENDIX・DATA SHEET

1

1. FY 3/2020 3Q Achievements

2

Executive summary✔

Sales is progressing nicely versus initial forecasts.
EBITDA and OP fell short of forecasts
owing to the profit impact of typhoons etc.,✔

An extraordinary loss item of 54 million yen was recognizedowing to the impact of typhoon No. 19.
We expect profits to be reduced by roughly 100 million yen
owing to an inability to make shipments as per normal.

✔

Purple Carrot will recognize consolidated
sales and profits(losses) and goodwill from 3Q.
Profitability at Purple Carrot is on an improving trend,
but as of 3Q, fell short of internal targets.
*Due to the difference in fiscal year-ends, Purple Carrot's results for the Jul to Sep quarter are consolidated.

3

Special factor in comparison withthe same period of the previous year

【FY 3/2019】① Radish Boya irregular fiscal year-end
associated with the business merger
・・Due to a change in the consolidated fiscal year of Radish Boya, FY2019/3
includes one extra month (4-months in 1Q resulting in 13-months total)・・The section marked “Exclude special factors” excludes the March 2018
performance of the Radish boya business.
(sales: approx. 1.600 billion, operating income: approx. 0.07 billion).

② Tax effects from merger of Radish Boya・・Tax effects of operating loss carryforwards and deferred tax assets
resulting from the merger of Radish Boya (About 1.2bn yen)

【FY 3/2020】③ New consolidation through M&A・・Welcome (Dean & Deluca) is accounted for by the equity method from 1Q
resulting in recognition of consolidated income and goodwill.
・・Purple Carrot will recognize consolidated sales and profits(losses) and goodwill from 3Q*Due to the difference in fiscal year-ends, consolidated results are delayed by 3 months(3Q is consolidated from Jul to Sep).

4

3Q Highlights
Sales is progressing nicely versus initial forecasts.
EBITDA and OP fell short of forecasts, owing to loss of profits caused bytyphoons and shortfall of Purple Carrot, which started to beconsolidated from 3Q.

Sales

Operating
Profit52.42bn yen EBITDA 2.38bn yen（vs Target +1％）

1.59bn yen（vs Target ▲9％）（vs Target ▲5％）Net income
Attributable toowners of theparent0.69bn yen
5※For the purposes of like-for-like YoY comparisons,
one extra month of Radish Boya data (March 2018)
was deducted from FY 3/2019 data.

Consolidated Results Overview

Sales increased compared with the same period of the previous year,
EBITDA and OP decreased owing to increased temporary expenses for
Kit Oisix expansion etc.,
Sales

EBITDA

52.42

bn yen47.31

FY2018/33Q

FY
2019/3
3Q

2.81

1.28
0.81

FY
2020/33Q

FY
2017/33Q

FY
2018/33Q

FY
2019/33Q

1.59

bn yen

2.38

2.19

0.62

FY
2020/33Q

FY
2017/33Q

0.69

FY
2018/33Q

1.59

Exclude special factors

FY2017/33Q

bn yenExclude special factors

17.11

2.38

52.42

Exclude special factors

30.00

Operating Profit

FY
2019/33Q

FY
2020/33Q

6

Impact of typhoon disaster
Typhoons damages disrupted the entire supply chain. We expect profits
to be reduced by roughly 100 million yen. We implemented a review of
BCP (Business Continuity Plan) for disaster contingencies.

◆Typhoons damages
Producers

Distribution Center

Last one mile

Significant damage
occurred in about
20 Producers

Due to the impact ofplanned suspension,
the operation of the distribution
center was partially suspended

Disposal response
due to suspensionof delivery services◆BCP improvement✔ In the short term, the disaster response manual was updated.
We also plan to revise our BCP plan in the future.

✔ We plans to invest in upgrades to enable quick responsein the event of a similar-scale disaster
7

EBITDA comparison
with FY3/2019 3Q※For the purposes of like-for-like YoY comparisons,
one extra month of Radish Boya data (March 2018)
was deducted from FY 3/2019 data.

Despite sales growth, profit decreased owing to increased temporary expenses
for Oisix expansion etc.,
EBITDA（bn yen）
1

Increase in newpromotional in Oisix

Major increase in costs3

Increase costs
due to Oisix
prime pass

0.29

2.81

*Exclude special factors
FY2019/3 3Q

0.9

0.36
0.21

Increase in
Marginal
profitdue
to increase
In entirebusiness

2 Temporary
expenses for
Oisix
expansion

0.23

Purple Carrot
Operating loss,
Impact of
Typhoon Etc.,

0.24

2.38

Promotional in Oisix

1 ：0.29bn yen

・Large-scale promotions of 1Q
・Strengthen promotions in Sep.
when lifestyle changes

Temporary expenses for Oisix

2 expansion ：0.36bn yen

・Additional warehouse leasing expenses,
transport expenses, etc. due to the rapid
growth4 Increase costsin Daichi andRadish Boya

3 Oisix prime pass：0.21bn yen

・Discounts cost：Upfront investment toimprove LTV

4 Daichi and Radish-Boya：0.23bn yen
・Increase in fixed cost ratio
due to decrease in sales

FY
2020/3 3Q

8Net Income comparison
with FY3/2019 3Q※For the purposes of like-for-like YoY comparisons,
one extra month of Radish Boya data (March 2018)
was deducted from FY 2019/03 data.

Net income decreased due to due to the absence of the income
taxes effects from merger of Radish Boya.
FY3/2019 3Q （bn yen）

FY3/2020 3Q （bn yen）
Purple Carrot
Goodwill amortization

2.81
0.61
*Exclude special factors
EBITDA

2.19

goodwill/
depreciationamortisation

0.02

2.46

2.38

Welcomeequity-method
goodwillamortization

0.29

non-operating/
IncomeExtraordinary taxes-current/
profit and loss
Incometaxes-deferred

0.79

the absenceof the income
taxes effects

1.59
0.23

goodwill/
depreciationamortisation

non-operating/
Extraordinary
profit and loss

0.67

0.69

Incometaxes-current/
Incometaxes-deferredOP

Net income

EBITDAOP

Net income

9Business segment Results
Sales

Oisix

Other
Business(YoY ▲3％)7.93bn yen 1.39bn yen(YoY ▲6％)

RadishBoya＊

Marginal profit

26.52bn yen 3.26bn yen(YoY +20％)

Daichi＊For the purposes of like-for-like YoY comparisons,
one extra month of Radish Boya data (March 2018)
was deducted from FY 2019/03 data.

(YoY ▲9％)11.41bn yen 2.00bn yen(YoY ▲11％)(YoY ▲17%)6.38bn yen 0.65bn yen(YoY +55％)(YoY +42％)

Overview
Typhoons notwithstanding,
growth has continued at +20%.
Key KPIs such as churn andorder frequency have improved.

Rate of decline in subscriptions shrinking.
With targeted product/service
development nearly complete,
we aim to start testing new services
from 4Q onward.
Reduction of unprofitablesubscriptions completed. Goodsigns emerging from operational
excellence measures and efforts
to align product propositions
with customer needs.
Sales increased due to theconsolidation of Purple Carrot from
3Q, but profits were down.Profits
benefit from big turnaround in thewholesale business for nurseryschools. Also seeing steady growthin the alliance business.

10Business segment Results Overview
Sales

52.42
Other
Businessbn yenMarginal profit
margin10.3％

Segment costs

Total segment costs

RadishBoya

Daichi

Marginal profit
marginSegment costs

17.5％

Marginal profit
margin45.11bn yen

Segment costs

17.6％
Marginal profit

7.31
Marginal profit
margin

Oisix

12.3％

Segment costs

bn yenCompanywide fixed costs,
Goodwill etc

5.72bn yen
Operating Profit

1.59

bn yen11

2. Results on Business segment

12

Overview of Business Segments① Domestic Delivery business（Three major brands）
Oisix
Daichi
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business
Real Retail Business13

Domestic Delivery business（Three major brands）

Overview of Business Segments

Domestic Delivery business（Other）

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

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business
Real Retail Business14

Domestic Delivery business（Three major brands）

Business phase of theHome delivery business

Domestic Delivery business（Other）

Other Business

Implementing brand strategies that consider each of the brands’
business phases.
Phase:Creation of products
and services

Phase:
Launch of Business

Phase:
Business Expansion

Accelerating Business Growthby capturing increased needs “Premium time savings”

・”Chanto”Oisix

・Oisix・Kit Oisix

Product and service development
in line with targets
Completed(FY3/2020 2Q)

Ongoing(“Daichi no Yasai Okazu Set”Etc.,)

Executing operation
excellence
Ongoing(FY3/2020/3 4Q
Expected completion)
15

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Other BusinessNo. of subscribers：
235,000 person target achieved ahead of plan in the 3Q.
ARPU：
Reflecting efforts to improve the conversion rate, purchase frequency
exceeded year-earlier figures helping to shrink the YoY ARPU gap.
No. of subscribers

236,836（YoY +20.1％）225,553

ARPU※

236,836
230,556

11,384yen（yoY ▲1.3％）

205,976

11,562

197,272

11,534

189,352
179,942

11,127
11,244FY2019/3
FY2020/3

11,384

10,616FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2020/3

FY2020/3

FY2020/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

※ ARPU=Average Revenue Per User：一人当たり月単価

4Q

16Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Other Business

Exceeded 140,000 by capturing growing demand for meal kits.

Significant year-on-year growth of about 150%
No. of meal kit course subscribers

Feature of Kit Oisix

141,292

１(Includes Oisix subscribers)

Delivers volumes/quantities of food

（YoY +49.0％）

suitable for a given family size. Allows

141,292
134,895

preparation of the main dish and sidedish in 20 minutes.

128,5512

111,169

All menus contain five or moretypes of vegetables and reflect

94,841consideration for well-balanced

87,232
79,674nutrition.

3
Uses only safe, reliable ingredientsfrom farmers and manufacturers
under contract to us.
FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2020/3

FY2020/3

FY2020/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

17

Domestic Delivery business（Three major brands）

Oisix Topics

2.05

Domestic Delivery business（Other）

Other Business

Reflecting 1) a push to high conversion rate “Chanto Oisix,” 2) anincrease in users of “Oisix Prime Pass,” and 3) changes to delivery
fees, purchase frequency, hitherto a point of issue, shift to up trend.
Purchase frequency(Number/month)
2.03

2.00

1.96

YoY

shift to up trend

1.96

1.94

1.95

YoY +0.2％

100.0%

1.93
1.86

1.90

1.88

1.91

1.88

1.86

98.0%

1.82

1.85

1.80

96.0%

1.75

1.70

FY2018/3

FY2018/3

FY2018/3

FY2018/3

FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2020/3

FY2020/3

FY2020/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

◆Shiftingto “chanto oisix”
a push to highconversion rate
“Chanto Oisix,”

94.0%◆Increase in users“Oisix prime pass”
Increase in subscribersof the flat-rate service“Oisix prime pass”

18

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）

Other Business

Churn fell reflecting improvements to the cancellation page layout.
Further, subscriptions of “Chanto Oisix,” a service for those disliking
cut vegetables, grew steadily and versus other courses, purchasefrequency rose 30%.
Reduction of churn rate
Churn fell roughly 10% YoY reflecting the effects ofchanges in the layout of the cancellation application
page.

Promote specialdelivery fees, advancereservation planningand other benefits forregular subscribers.

Actively propose solutions
that mirror lifestyles tocircumvent subscription
cancellations stemmingfrom such factors as
moving, travel, andexcessive generation ofunused food ingredients.

“Chanto Oisix”
Subsribers of “Chanto Oisix,”for those who do not like cut
vegetables , has surpassed 12,000*.
We look to continue refining
our services and expand PR for new
services to follow on the heelsof “Kit Oisix.”・Purchase frequency
of “Chanto Oisix”(number/month)
2.58

2.63

2.54

2.38

2.43

“Chanto Oisix”
Other course

2.56

2.60

2.60
2.38

About
1.82

4月

1.94

5月

1.92

6月

1.83

30% 1.85
increase
1.87

1.90

7月

8月

11月

1.75

9月

10月

*The number of "Chanto Oisix" members is included in the number of "Kit Oisix" members.

1.79

12月

19

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）

Other BusinessInitiated sales of Purple Carrot’s Vegan Kit in October. Since inception,

sales have grown steadily based on the concept of “Occasional Vegan.”Servings have exceeded 30,000 in the two months since launch.
Vegan Kit

Collaborative events with AVEDA
Aimed at helping expand the Japanese veganmarket, we held a Purple Carrot collaborative eventwith Organic Cosmetics Brand "AVEDA."
Provide 15 or more vegan recipes

in the first 2 months

×

Exceeded
30 thousand meals◆Vegan LifestyleLifestyle that does not consume
animal-derived ingredients.
In recent years, in consideration of the
global environment, the style of enjoying
vegan food only a few days a week has
spread mainly in Europe
and the United States.

20

Oisix Topics

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

Other Business

Kit Oisix was awarded the Tomorrow Women's Grand Prize (anaward program recognizing products/services contributing to abrilliant tomorrow for women).
◆Reasons for winning the award
Amidst many home delivery meal kit
services, Kit Oisix was highly appraisedfor its positive emotive effect among
working women and mothers.
For example, the first step in a given
recipe might be: ① Provide a slice ofcheese to child. With a big smile, instructchild to enjoy the cheese whilst you
prepare the main meal. Indeed, ourpopularity stems not only from relief frommenu planning, but from our thoughtfulconsideration of child-rearing itself.

21

Domestic Delivery business（Three major brands）

Daichi KPIDomestic Delivery business（Other）

Other BusinessNo. of subscribers：
Rate of decline in subscriptions has been shrinking and we expect a near-bottoming in thesecond half. From the 4Q, we aim to propel subscription conversions via a focus on media
having strong affinity with our services.
ARPU：
Via service solutions that mirror target needs, we aim to achieve consistent YoY growth.

ARPU※

No. of subscribers

37,257

23,679yen（YoY ▲13.3%）
44,111

43,835（YoY +8.4％）

42,996
40,210FY2019/3

23,67938,571

FY2020/3

37,587 37,257

21,232

21,443

21,84820,122

19,75819,386FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2020/3

FY2020/3

FY2020/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

*ARPU=Average Monthly Revenue Per User

4Q

22

Domestic Delivery business（Three major brands）

Daichi Topics

Domestic Delivery business（Other）

Other Business

Whilst continuing to develop products and services that mirror target needs,
we look to keep close tabs on customer acquisition efficiencies
and utilize new service and start experiment to expand regular members
Subscribe conversion trial
using new services“Daichi no Yasai Okazu Set”

Product reorganizationin line with target needs
Major renewal of the product line-up of
subscription courses.About 1/4 of the courses
were reorganized to motivate existing
subscribers to purchase.
Sales increased byabout 20%compared tobefore renewal.

Existing members（NOT subscribers）

Attracting
new customers

Increasing the frequency andprice of purchases by
subscribing to customers whopurchase individual items

Scheduled to be rolled out
to new customers
after approachingexisting members

23

Domestic Delivery business（Three major brands）

Radish Boya KPI

Domestic Delivery business（Other）

Other BusinessNo. of subscribers：
Reduction of unprofitable orders completed. Reduction attained via continued
prioritization of enhanced service levels and restraint in new customer acquisitions.
ARPU：
Continuously rising in YoY due to the effects of operational excellence measures.

No. of subscribers

ARPU※

58,655人

20,028yen（YoY ▲11.4%）
74,949FY2019/3（YoY +5.5％） 20,028

FY2020/3

72,104
66,233

18,98863,461

61,50759,927 58,655

18,27718,301
17,277FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2020/3

FY2020/3

FY2020/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

17,264

17,177

2Q

3Q

4Q※ ARPU=Average Revenue Per User：一人当たり月単価

24Domestic Delivery business（Three major brands）

Radish Boya KPI

Domestic Delivery business（Other）

Other Business

Reduction of unprofitable orders is completed in 2Q.
Reduction of complaints and churn rate
due to the effects of operational excellence measures.

New user complaints
and churn rates decreased
due to trial set improvement
Reflecting efforts to improve the appearanceof trial sets, customer claims here roughly
80% reduction. Additionally, churn for newusers subsequent to regular conversion fellby roughly a third.

✔

“Palette” customization“Arrange Palette”, which enables customers to replacevegetables they dislike, enjoys a high purchase frequency
versus other courses. Expansion plans underway as the
product represents a good match to those users wishing toeliminate waste and leftovers.

Appearance：
Improvement of filling rateby changing box size etc.

✔ Taste：Conduct weekly
taste tests

・Purchase frequency of “Arrange palette”
Other
course“Arrange
Palette”

2.2 times/month

About
40% increase

3.0 times/month25

Domestic Delivery business（Three major brands）“Osechi” sales in 2020

Domestic Delivery business（Other）

Other Business

All three delivery brands saw substantial YoY sales growth.
Sales to general consumers also saw substantial growth via focus
on closed membership websites. Overall, sales grew 25% YoY.
Domestic delivery brands

Sales to general consumers

・Reform the product lineup from frozen to chilled “Osechi”
in line with customer needs

・Limited sales channels
to only closed membership sites.

・Both Online and offline media appeal, Creative weekly updates
・Advance reservation period, Redesign prior reservation incentives＋

・Create and update creativein line with each site's target

Sales over YoY +25%
26

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 Business27

Domestic Delivery business（Three major brands）

Alliance Projects

Domestic Delivery business（Other）

Other Business

ISETAN DOOR：
The fastest increase in Number of subscribers among our e-commerce
support businesses.
d-meal Kit：
Construction of the basic model for subscriptions is complete.
We scheduled to move to an expansion phase in the next fiscal year.
ISETAN DOOR

✔ The fastest increase in Number of subscribers
among our e-commerce support businesses.
Steady expansion with better-than-expected
progressd-meal Kit
our know-how to establish a marketing✔ Introducing
model that encompasses everything from attracting
customers to purchasing subscribers. We scheduled
to move to an expansion phase in the next fiscal year.

28

Domestic Delivery business（Three major brands）

Tokushimaru(subsidiary)

Domestic Delivery business（Other）

Other Business

The monthly value of circulation exceeded 1 bn yen.
We expect to exceed 10 bn yen in this fiscal year.
In addition, the pace of increase in the number of vehicles in operation is rising,and it is expected to reach 500 by the end of this fiscal year.

The value of circulation(3Q cumulative amount)

7.83

bn yen（YoY +33.9%）

7.83

Development Scale
Number of affiliatedsupermarkets

119

Number of vehicles
in operation

473

5.85

4.05
2.57
0.98

FY2016/3

FY2017/3

FY2018/3

FY2019/3

FY2019/3

3Q

3Q

3Q

3Q

3Q

29

Tokushimaru Topics

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

Other BusinessWe were awarded the “Furusato Dukuri Grand Prize” Group CategoryAward in recognition of our community revitalization efforts. Via theeffective use of paper bags, we have also been working to reduce
plastic waste – a major social issue.
“Furusato Dukuri Grand Prize”

working to reduce plastic waste

In recognition of our efforts to mitigate
the social issue of food “shopping refugees,”
we received the “Furusato Dukuri Grand Prize”(sponsored by the Ministry of Internal Affairs
and Communications).

As part of our efforts to reduce plastic waste,
we are working with “Kyo-Ei” –a Tokushima-based food supermarket,
as well as with Tokushima Prefecture itself,
to reduce plastic grocery bags.
Collection of paper bags from local residents
were implemented.

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

Domestic Delivery business（Three major brands）

Purple Carrot(U.S.)

Domestic Delivery business（Other）

Other Business

Purple carrot is a 100% vegan meal meal delivery business in the

United States. It will recognize consolidated from 3Q

×・Courier service that offers meal kits
only for plant-based meals
・Weekly subscription model for 48
states across theUnited States

Expansion of Vegan Food × Health✔ Global
Conscious Food of Japanese Foodin both Asia and the U.S.

✔ Expanding management expertise in food
Subscription Model to Purple Carrot toachieve profitability at an early stage

32

Domestic Delivery business（Three major brands）

Purple Carrot(U.S.)

Domestic Delivery business（Other）

Other BusinessWe have introduced our business and KPI management methods.
Although profitability has been on an improving trend, we have not achieved ourinternal targets. Competition in the U.S. vegan market has intensified, so operation
improvement has been prioritized. We achieve complaint reductions
by actively exchanging human resources and horizontally developing our know-how.

Quality improvement✔ We prioritize quality improvement andimplement measures to improve logistics operations

Since implementation of efforts to achieve
lateral diffusion of our expertise last year June,
we have been able to achieve significant reduction
to customer claims relating to key KPIs delivery and picking errors,
within the home delivery business.

・・Optimize packaging materials to prevent damage
・・Change of box layout
for quality assurance of fruits and vegetables

Delivery Claim

Picking errors

About
About

✔ Actively promote human resource exchange

50％ reduction

Beforeintegration

FY3/2020
3Q

40％ reduction

Beforeintegration

FY3/2020
3Q

33

Domestic Delivery business（Three major brands）

Hong Kong/Shanghai

Domestic Delivery business（Other）

Hong Kong：
We aim of identifying and establishing a winning pattern to attract customers
Shanghai：
We have confirmed the need for "Kit Oisix" in Shanghai
and aim to grow our business by focusing on it.

Hong Kong✔ We aim of identifying and establishing a winning

pattern to attract customers in Hong Kong,and focus on maximizing sales in Lunar New Year

✔ We will engage in local processing of domestic
products in order to reduce internationaltransportation costs,✔ We received “Most Valuable Company
Awards in Hong Kong 2020”

Other BusinessShanghai
the aim of establishing a Chinese subscription✔ Withmodel, CXO will be based in China
to identify needs
confirmed a healthy low-fat diet, room for✔ Havingcooking skills improvement, and the role “Kit Oisix”
could play as a potential solution, we look to expand
locally.

・Award ceremony(Left: Takahashi Daiju, Oisix Hong Kong CEO)34

Domestic Delivery business（Three major brands）

Real Retail Business

Domestic Delivery business（Other）

Sales grew steadily at both SinS/ Kindergarten Wholesale.
For Kindergarten Wholesale business, profitability improved
significantly owing to ongoing measures from 2Q, such as
reviewing suppliers and distribution routes.
Shop in Shop

Kindergarten Wholesale

Sales

0.58

Other Business

Sales

0.73

bn yenbn yenNo. of shops

No. of tradingkindergartens

153

363

0.59

0.55

0.58

0.73
0.56

0.31

0.31

0.08

FY2017/3

FY2018/3

FY2019/3

FY2020/3

3Q

3Q

3Q

3Q

FY2017/3

FY2018/3

FY2019/3

FY2020/3

3Q

3Q

3Q

3Q

35

Domestic Delivery business（Three major brands）

Real Retail Business Topics

Domestic Delivery business（Other）

Other BusinessWe look to utilize the Kindergartenand Shop in Shop businesses
as a medium to enhance Kit Oisix brand recognition and/or
broaden the needs of user demand.
◆Kinder Garden

We have begun to pick-up service of Oisix
on a trial basis. Noting that parents picking up children
do not always have a dinner menu planned,
or may not have time to go to the grocery store,
we plan to sell Kit Oisix at kindergarden.

◆Shop in Shop

Regarding Shop in Shop, via expansion of Kit
Oisix sales, we look to achieve brandrecognition and increased use of services foreven those not requiring home delivery.

36

Domestic Delivery business（Three major brands）

Future Food Fund

Domestic Delivery business（Other）

Other BusinessWe have decided on three companies to be the initial investment
destination of the “Future Food Fund,” a CVC in the food innovation
arena. Including support for growth, we look to derive synergies fromthese investments.

Food Start-ups◆MiL Co. ltd.,◆FarmNote Co. Ltd.,(Tokyo, Japan)(Hokkaido, Japan)

・Develop andsell ”Mi+Mitas”
subscription
milk-free foods

・Delelopment of cattleherd management cloudsystem/wearable devices

・Operation of
Healthcare Creative
Restaurant “Wa”

◆Fifty Food Inc.
(San Francisco, U.S.)

・Development and salesof vegan instant noodles
37

Domestic Delivery business（Three major brands）

Affiliate Topics

Domestic Delivery business（Other）

Other Business

DEAN&DELUCA：Business progress steadily such as TV publicity and new store opening
Nihon Agri：Export of domestic fruits and vegetables is expanding steadily

DEAN & DELUCA

Nihon Agri✔ Featured in "Cambria Palace“✔ Growth in the value of transactions(Business TV show in Japan) in Nov.
Sales of introduced products continue to sell out.

between Nihon Agri and our contract producers
has allowed stabilization of fruit and vegetable supply.

✔ Exports to Taiwan saw tremendous growthat 300% of year earlier levels.

✔

Actively refining existing stores but also
opening new ones. In Jan, we opened acafé-type store in the new outpatient wingof Jikei Univ. Hospital.

38

Our business portfolio
Strengthen domestic
and real businesses

Physical(20%出資)（20%
stake）
SinS

Real
Shop

Kindergarten
wholesale

Delivery

Subscription Businessgrowth in line withgrowth modelOverseas expansion ofsubscription know-how
Generation

Start-up support
using existing
businesses

Oisix
Hong Kong
Oisix
Shanghai

Focusing on convenience

Overseas

Domestic

MarketingFulfillment

SupportforStart-ups
39

3. ESG Topics

40

About coronavirus
To enable flexible response to varying circumstances,a countermeasure task force was created within the company.
New memberships increased in Hong Kong reflecting coronavirus. Hygiene
standards for domestic delivery were reinforced as a preventive measure.

Domestic delivery

Oisix Hong Kong

✔ For Hong Kong, demand for home delivery is
expanding due to concerns about going out.
Oisix has been featured in multiple media,
and new members have increased.

✔

Hygiene standards for distribution center
were reinforced as a preventive measure.

41

Switch the external bags of all Kit Oisix
to biomass-based plastic materials

We will switch the external bags of all Kit Oisix to biomass-based
plastic materials. As a result, we can reduce CO2 emissions
by 13 tons per year.
✔ From April 2020, we will graduallyswitch the external bags of all Kit Oisix
to biomass-based plastic materials
blended with plant materials derived
from sugarcane.

✔ We can reduced annual consumption of

petroleum-derived plastics by about 3 tons
and CO2 emissions by about 13 tons.

✔ This is the first meal kit to use abiomass material lthat uses all
the elements (bags, recipe
pockets, inks) of external bag.

42

TABLE FOR TWO receives
Japan SDGs Award“The Onigiri Action Project” of TABLE FOR TWO, a non-profit
organization in which Oisix has participated since 2008, won the Japan
SDGs Award as the deputy general manager of the division.
”Onigiri(rice balls) Action”

Initiatives to donate 5 meals to
African and Asian children via

TABLE FOR TWO for each photoposted rice balls

43

Career Select Ability Award
We received Career Select Ability Award for corporates that have thepower to develop business people who will be needed by society in the
future, backed by social contributions and high profits.

44

N-1 Summit/Organic Festa
We are going to hold two communication events with the aim of interacting
ofagriculture technologies between Producers, and Producers and consumers
next March.

N-1 Summit

Organic Festa

・Awarded "Farmers and of the Year"selected by customers and helddiscussions
among Producers.About 400 ORD Producers
nationwide participated last year.

・Communication events linking「Producers」「Oisix ra daichi」「Comsumer」Morethan 2,000 subscribers
participated. Last year45

4. APPENDIX・DATA SHEET

46

Corporate Overview

Name：

Oisix ra daichi Inc.

Location：

Shinagawa-ku, Tokyo

Established：

June 2000

Representative： Kohey Takashima, Representative Director & CEO
Capital：1,690,928 thousand yen

Employees：

735 (consolidated), as of the end of March 201947

Overview of Affiliates
Consolidated subsidiaries
Tokushi-maru Inc.

Develops alliances with supermarkets in the mobile supermarket business;
provides expertise to sales partners.

Fruits Basket Co., Ltd.

Handles processing, product development, and sales,
for agricultural produce, including fruits and vegetables.

Karabiner Inc.

Develops and operates platform systems for EC sites; produces websites.

Crazy Kitchen Co., Ltd.

Handles catering, event production, and space production businesses.

Oisix Hong Kong Co.,Ltd.

Operates our businesses in Hong Kong under contract.

Oisix Shanghai Co., Ltd.

Operates the food products home delivery business in China.

Purple Carrot

Meal kit delivery service in the United States

Oisix Inc.

Overseas investment business

Future Food Fund Inc.

Investment business for food-related startup companies

Affiliates
Nihon Agri Inc.

Exports agricultural products.

DEAN & DELUCA

Lifestyle business through retail and restaurant businesses
Manufacture and sale of imported and processed foods, and operation of cafes
48

Trend in No. of Employees
735
680

421

163

FY2013/3

179

FY2014/3

192

FY2015/3

210

FY2016/3

FY2017/3(Consolidated)

FY2018/3(Consolidated)

FY2019/3(Consolidated)49

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.

50

Our Subscription Model
Expanding our business areas to include alliances and marketing support
for other companies based on subscription model strengths in our threehome delivery brands.
consumers

Our Strength

Home delivery

Marketing forhome delivery
subscriptions

Own brand

Alliance
Managing subscriptions
to ensure thoroughmanagement ofrevenue structures
Purchasing
Producers

Subscription networkwith producers

51

What Our Three Brands Deliver
Based on the distribution of safe, reliable food products, each of our threebrands delivers products tailored to the lives and values of our customers.
Working mothers withsmall children

Mothers focusing on
the home and children

Senior women in twoperson households

Meals that can be boasted
without taking time

Self realization
through Cooking

Healthy daily living

Producers

52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

53

Subscription Network
Reducing risks and securing stable transactions through a subscription
network based on 4,000 producers nationwide and procurement undertransaction conditions arranged in advance
Typical distribution of agricultural products

Consumers

Retail store
Wholesale market

Purchase prices vary
widely withproduction
conditions.

Inability to control
volumes purchased
and prices due tomarket conditions

consumers
Purchases at stablepricing regardless ofmarket conditions

Oisix ra daichi

Facilitating demand
control/projections
through sales plans
based on projectedsupply volumes

Advance purchase commitment basedon specified product types,
quantities, timing, and prices

Agricultural cooperative

Producers

Our efforts

Revenue prospects
unclear due to pricevariations resulting
from market
conditions

Producers

Clear revenue
projections to backsound investment
decisions54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

1 placein Kanagawa

6 placesin Hokkaido, Miyagi,
Tokyo, Kanagawa,
Aichi, Osaka,.

1 placein Chiba

Yamato trucks
approximately 99％

Our trucks
approximately 95％（area around
Logistics bases）

Our trucks
approximately 85％（area aroundmetropolitan area）
55

International BusinessHong Kong

Oisix Hong Kong
Producers

Regularsubscribers

Hong Kong

RegulardeliveryChinabuyingup

Yamato trucks

Oisix Shanghai
Same standardsof Oisix

Regularsubscribers

Producers

China

Regulardelivery

Our trucks
Yamato trucks

buyingup

45

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

57

Kindergarten wholesale
The kindergarten wholesale business was launched in FY2015. Based on the Omakase Boya systemthat makes it possible to order ingredients for student meals based on menus,
it provides support for kindergarten operations in both serving meals and nutrition.
Oisix ra daichi

Kindergarten

Omakase Boya system
for receiving orders from kindergartens

Producers

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

Deliveryon
Requested
date

Purchase◆Full-time senior nutritionists develop uniquemenus for use by kindergartens; they also
respond to requests for nutritional
consultations.
◆Easy ordering using a simplified Web form
◆Simplified single supplier management58

Business Solutions
We propose B2B business solutions based on our safe, reliable products,
outstanding customer base, and expertise in subscription-based EC.

EC consulting
Solutions support basedon our expertise in repeat marketing,site user interface/user experience
improvements,
food logistics in three temperaturezones, securing new EC customers,
and omni-channel management

Ad Oisix:

Tavelty：

Periodic advertisements
delivered to subscribers

seasonal vegetablenovelty products

In addition to an EC site that boasts 1.2
million unique views per month, thisservice delivers advertising to about
300,000 households, including
subscribers to DWMK and Radish Boya.

We offer novelty products basedon our expertise in service,products, and delivery, establishedthrough more than 3 million
regular deliveries a year.

59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 rule60

DATA SHEET：Results
Results
FY2017/3（mn yen）

Sales

1Q

2Q

3Q

FY2018/3

4Q

1Q

2Q

3Q

FY2019/3

4Q

1Q

2Q

3Q

FY2020/3

4Q

1Q

2Q

3Q

5,379 10,718 17,113 23,016 9,602 18,935 30,007 39,987 16,853 31,720 48,906 64,026 16,265 32,552 52,425

Operating
Profit

169

270

625

752

141

237

891

610 1,115 2,265 2,312

543

EBITDA

225

391

810

996

320

635 1,282 1,670

808 1,513 2,882 3,154

755 1,348 2,381

381NetincomeAttributabl
e toowners ofthe parent

119

187

429

515

72

93

537

270

692

336

237

893 2,533 2,387

900 1,597

390

695

61

DATA SHEET：Business Segment Result
Business Segment Result
FY2018/3（mn yen）

1Q
Sales

Oisix

2Q

FY2019/3

3Q

4Q

1Q

5,790 11,470 18,481 24,799

2Q

3Q

FY2020/3
4Q

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

1Q

2Q

3Q

8,308 16,524 26,522

Marginal
profit

674

1,392

2,421

3,288

970

1,943

3,371

4,036

933

1,868

3,261

Sales

2,790

5,487

8,508 11,215

2,769

5,440

8,405 10,902

2,587

5,137

7,936

Marginal
profit

539

1,078

1,650

2,095

479

960

1,989

457

885

1,397

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

Sales

1,109

2,163

3,263

4,250

1,482

2,755

4,198

5,793

1,663

3,529

6,383

Marginal
profit

185

384

571

760

154

290

479

724

256

557

656

Companywide fixed
costs,
Goodwill etc

1,257

2,853

3,951

5,253

2,024

3,844

5,779

7,779

1,792

3,683

5,719

Daichi

RadishBoya

OtherBusiness

1,536

7,459 11,410

62

Data Sheet：Main KPIKPI trend
FY2018/3

Oisix

Daichi

RadishBoya

FY2019/3

FY2020/3

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Subscribers(number)

169,664

179,942

189,352

197,272

205,976

225,553

230,556

236,836

ARPU
（yen）

11,602

11,562

11,127

11,534

11,183

11,244

10,616

11,384

5,925

6,002

5,973

6,150

6,015

5,887

5,839

6,056

1.96

1.93

1.86

1.88

1.86

1.91

1.82

1.88

Subscribers(number)

44,933

44,111

43,83542,996

40,21038,571

37,587

37,257

ARPU（yen）

19,24020,122

19,386

21,84819,75821,232

21,443

23,679

7,726

7,770

7,553

8,529

7,811

7,990

8,026

8,472

2.49

2.59

2.57

2.56

2.53

2.66

2.67

2.79

Subscribers(number)

78,062

74,94972,101

66,233

63,14461,50759,92758,655

ARPU（yen）

16,63917,277

17,177

18,98817,26418,301

18,27720,028

5,278

5,460

5,616

6,114

5,869

6,055

6,060

6,398

3.15

3.16

3.06

3.11

2.94

3.02

3.02

3.13

Price/
purchase（yen）
Purchase
Frequency(number)

Price/
purchase（yen）
Purchase
Frequency(number)

Price/
purchase（yen）
Purchase
Frequency(number)63

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.

64