FY3/2020 1Q Results
Explanatory Materials

Oisix
August 13, 2019

Executive summary✔ Sales, EBITDA, and operating income areprogressing steadily compared to initial forecasts.

✔ Successfully increased both sales and profits YoY
on an adjusted like-for-like basis*.

*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). For the purposes of like-for-like YoY comparisons,one month of Radish Boya data (March) was deducted.

✔ We established Future Food Fund and launched
Oisix Craft Market services to create an ecosystemthat supports start-up companies in the food business.

1

Table of Contents

1. FY3/2020 Achievements
2. Results on Business segment
3. Solving issues in the food field

4. Social Activities
5. APPENDIX・DATA SHEET

2

1. FY3/2020 Achievements

3

1Q Highlights
Sales

16.26bn yen

Operating
ProfitEBITDA

※1(vs target +29.8％)

Net income

0.27bn yen(vs Target +1.4％)

0.54bn yen(vs Target +58.1％)

Attributable toowners of theparentHome Delivery Business
Oisix

Daichi

Sales

Sales

8.30bn yen

2.58bn yen

Marginal profit

Marginal profit

0.93bn yen

0.45bn yen※2

0.75bn yen

Radish Boya
Sales

3.77bn yen
Marginal profit

0.68bn yen

Other Business
※2

Sales

1.66bn yen
Marginal profit

0.24bn yen

4※1 EBITDA stands for earnings before depreciation and amortisation.
※2 Includes amortisation of goodwill (included in each business segment in the financial results & quarterly reports)

* Due to a change in the consolidated fiscal year,
FY2019/3 includes one extra month (4-months
in 1Q resulting in 13-months total).
For the purposes of like-for-like YoY comparisons,one month of RadishBoya data (March) was deducted.

Consolidated Results Overview

Successfully increased both sales and profits YoY
on an adjusted like-for-like basis*.
Sales

EBITDA

16.26

bn yen15.28

FY
2018/3
1Q

FY
2019/3
1Q

0.74

0.32
0.22

FY
2020/3
1Q

FY
2017/3
1Q

FY
2018/3
1Q

FY
2019/3
1Q

0.54

bn yen

0.75
0.54

0.16

FY
2020/3
1Q

FY
2017/31Q

0.14

FY
2018/31Q

0.54

Exclude special factors*

FY2017/3
1Q

bn yenExclude special factors*

5.37

0.75

16.26

Exclude special factors*

9.60

Operating Profit

FY
2019/3
1Q

FY
2020/31Q

5

* Due to a change in the consolidated fiscal year,
FY2019/3 includes one extra month (4-months
in 1Q resulting in 13-months total).
For the purposes of like-for-like YoY comparisons,one month of RadishBoya data (March) was deducted.

EBITDA/ Net income
comparison with FY3/2019 1Q

EBITDA increased YoY on an adjusted like-for-like basis*, despite investments
to Oisix bland.Net income decreased due to normalization of Radish Boya income tax rate
and amortisation of goodwill at Welcome Co., ltd..
EBITDA （bn yen）
1-monthaccumulation
due to change
in fiscal
year-end
RadishBoya

0.81

Increase in
Marginal profit
due to increase in
Oisix sales

0.74
0.07

0.21

attributable to owners of the parent （bn yen）

Increase in
Marginal profit of
Solution etc.,

0.12

FY
2019/3 1Q（Exclude special
factors）

4.6

0.75

0.24

Increase in
new sales
promotionetc.,
in OisixTax effectassociated with
the RadishBoya

1.2

0.16

Decrease in
Marginal profit due
to drop in Daichiand RadishBoya
sales

FY
2020/3
1Q

FY
2019/3 1Q

Welcome Co., ltd
equity method
goodwill
amortisation, etc.

3.4
Exclude special factors

Exclude special factors

FY2019/3 1Q

Net income

0.7

FY
2019/3 1Q(Exclude special
factors)

2.7

FY
2020/3 1Q

6

Business segment Results Overview
Sales

16.26
Other
Businessbn yenMarginal profit
margin15.4％

Segment costs

Total segment costs

RadishBoya

Daichi

Marginal profit
marginSegment costs

18.3％

Marginal profit
margin13.93bn yen

Segment costs

17.7％
Marginal profit

2.33
Marginal profit
margin

Oisix

11.2％

Segment costs

bn yenCompanywide fixed costs,
Goodwill etc,

1.79bn yen
Operating Profit

0.54

bn yen7

Expanding Business Domains
to Non-Linear Growth
In addition to the domestic delivery of subscribers, we began overseasdelivery of subscribers and entry into the domestic real estate business.

PhysicalStrengthen domestic
and real businesses(20%出資)（20%
stake）

SinS

Real
Shop

Kindergarten
wholesale

Focusing on quality

Delivery

Generation

Evolution of Domestic
Subscription delivery
Oisix
Hong Kong

Expansion of overseas
subscription delivery

Oisix
Shnghai
Focusing on convenience

Overseas

Domestic

MarketingFulfillment

Establishment ofa startup ecosystemin the food category
Building a food distribution
supply chain and solvingsocial issues
82. Results on Business segments

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

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

10Overview of Business Segments

Domestic Delivery business（Three major brands）
Domestic Delivery business（Other）① Domestic Delivery business（Three major brands）

Other Business

Oisix
DWMK
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business
Real Retail Business11

Domestic Delivery business（Three major brands）

Oisix KPI

Domestic Delivery business（Other）

Other BusinessNo. of subscribers：
Significant growth due to the effects of large-scale promotions
and television broadcasting
ARPU：
Slight decrease due to decrease in both frequency and price/purchasedue to increase in new light users
No. of subscribers
ARPU*

225,553（YoY +25.3％）

225,553
205,976

11,244yen（YoY △2.8％）

FY2019/3

197,272

FY2020/3

189,352
179,942

11,562

11,534
11,183

11,127

11,244FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2020/3

1Q

2Q

3Q

4Q

1Q

1Q

2Q

3Q

4Q

*ARPU=Average Monthly Revenue Per User

12

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）

By focusing new customer acquisitions activities on meal kits,

Other Business

subscriptions have increased rapidly to over 120,000.
No. of meal kit course subscribers

Feature of Kit Oisix(Includes Oisix subscribers)

128,551

１
Delivers volumes/quantities of food

128,551（YoY +61.3％）

suitable for a given family size. Allows
preparation of the main dish and sidedish in 20 minutes.

111,1692
All menus contain five or more

94,841

types of vegetables and reflect

87,232consideration for well-balanced

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

1Q

2Q

3Q

4Q

1Q

13

Oisix Topics

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

Other Business
Led by meal kits, overall subscriptions saw rapid increase
due to the effects of exposure from the likes of “Sakagami & Sashihara no
Tsubure-nai Mise” (TBS affiliate) which was aired in April.

TV broadcast in April

Collaboration with Crayon Shinchan

14

Domestic Delivery business（Three major brands）

Oisix Topics

Domestic Delivery business（Other）

Oisix Prime Pass, a new subscription service, was launched on June 27 th

Other Businesswith the aim of increasing new customer retention and purchase frequency.
Oisix Prime Pass

By paying 1,280yen
per month

Daily free pass

Vege/Fruit passFree of 3 items
every week

20% discount onvegetables and fruit

15

Domestic Delivery business（Three major brands）

Daichi KPIDomestic Delivery business（Other）

Other BusinessNo. of subscribers：
Continuing to prioritize product/service design and in the curbing of
inefficient channels in the area of customer acquisition.
ARPU：
Increased owing to analysis of customer acquisition channels and effects ofexisting customer purchase frequency/ customer baskets.

ARPU*

No. of subscribers

38,571

21,232yen（YoY △12.6%）
44,111

43,835（YoY +5.5％）

FY2019/3
FY2020/3

21,84842,996
40,21038,571
21,232
19,75820,122
19,386FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2020/3

1Q

2Q

3Q

4Q

1Q

1Q

2Q

3Q

4Q

*ARPU=Average Monthly Revenue Per User

16

Domestic Delivery business（Three major brands）

Daichi Topics

Domestic Delivery business（Other）

Other Business

Owing to higher penetration of the subscription course
among new subscribers, customer retention post subscription has risen.
In the area of product development, we launched new items consistent withour concept of “proper dietary habits”.
Establishment of subscription courses
New users select courses suited to theirneeds from a menu of 3 subscription
courses at the time of membership.
・Seasonal vegetables ・Relief for children
coursecourseProduct development in linewith “proper dietary habits”◆Everyday Vegetable Side dishes Set

・Smoothie course◆The “Delectable Fish in a Flash” series

New user retention has increased
with promotion of subscriptions..
17

Domestic Delivery business（Three major brands）

Radish Boya KPI

Domestic Delivery business（Other）

Other BusinessNo. of subscribers：
Continued decline owing to improved profitability of existing subscribers
and curbing of new customer acquisitions.
ARPU：
Increased owing to a reduction in unprofitable users and the resulting improvementin average customer baskets.

No. of subscribers

ARPU*

61,50718,301円（YoY △17.9%）（YoY +5.9％）

74,94972,104FY2019/3
FY2020/3

18,98866,23363,461

61,50718,301

17,264

17,177
17,277FY2019/3

FY2019/3

FY2019/3

FY2019/3

FY2020/3

1Q

2Q

3Q

4Q

1Q

1Q

2Q

3Q

4Q

*ARPU=Average Monthly Revenue Per User

18

Domestic Delivery business（Three major brands）

Radish Boya Topics

Domestic Delivery business（Other）

Development of user-focused services
and customer acquisition channels under the concept of“A green grocery that makes cooking enjoyable.”
Arrange “Palette”*(vegetable box)
In answer to customer requests, the “Palette”
is a service that makes possible selection
between potatoes, onions, and carrots –vegetable items often purchased in excess.

Other Business

Promotion in Cooking class
Designated “ambassadors,” culinary professionals
introduce our services using RadishBoya products.

Can be freely switched*Palette: Our main product, Assortment box “Palette,” .
we provide 180 varieties of vegetables all year.

19Overview of Business Segments

Domestic Delivery business（Three major brands）
Domestic Delivery business（Other）① Domestic Delivery business（Three major brands）

Other Business

Oisix
DWMK
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business
Real Retail Business20

“d-meal kit” Release
In collaboration with NTT DOCOMO, we launched
a new service “d-meal kit powered by Oisix” on July 25th.

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

Other Business◆ Outline of “d-meal kit”

✔ Regular delivery of “d-meal kit”.
Offer a 5-day meal kit menu.
In the original meal kit "5min. delicious" series,
2 products, main dishes and side dishes, arecompleted in 5 minutes.

✔ Delicious Breakfast Passport
Customers can purchase milk, bread, ham, etc.
– handy for breakfast, with a simple fixedmonthly payment.

Via collaborative work with NTT DOCOMO, we aim to provide solutions
to the many customers having thoughts on issues
such as the burden of housework and food waste
21

Domestic Delivery business（Three major brands）

Alliance projects

Domestic Delivery business（Other）

Alliance projects (e.g., ISRTAN DOOR, Sumitomo Life Vitality),
ongoing since last year, have been progressing smoothly.
ISETAN DOOR
Exceeded 10 thousand users in May.
Gross transaction value also steadily increasing

Other Business

Sumitomo Life Vitality
The number of users grew steadily.
Add "Kit Oisix" to discount products
and expand services

22

Domestic Delivery business（Three major brands）

Tokushimaru(subsidiary)

Domestic Delivery business（Other）

Other Business

The mobile Supermarket business for elderly shopping refugees(Acquired shares in 2016).The value of circulation has grown steadily,
and the number of operating vehicles has surpassed 400.
The value of circulation

Development Scale

2.41

Number of affiliated Number of vehicles
supermarkets
in operationbn yen（YoY +35.5%）

2.41

113

415

Recent topics

1.78

In July 2019, Tokushimaru entered into a new
business alliance with “Delicia”, a supermarket
centered in the Koshinetsu region, and“Matsugen”, a supermarket centered in the
Kansai region.
Vehicles in operation exceeded 400. Aiming for
further expansion of infrastructure.

1.22

0.69
0.23

FY2016/3

FY2017/3

FY2018/3

FY2019/3

FY2020/3

1Q

1Q

1Q

1Q

1Q

23

Overview of Business Segments

Domestic Delivery business（Three major brands）
Domestic Delivery business（Other）① Domestic Delivery business（Three major brands）

Other Business

Oisix
DWMK
Radish Boya
② Domestic Delivery business（Other）

EC support business for other companies（Alliance）
Tokushimaru（Subsidiary）③ Other Business
Overseas Business
Real Retail Business24

Domestic Delivery business（Three major brands）

Overseas Business：Hong Kong/China(Shanghai)

Domestic Delivery business（Other）

Hong Kong: Entering a customer acquisition expansion phasehaving fine-tuned services content
China: Advancing improvements to services launched in March.
Oisix Hong Kong
Whilst we continue to fine-tune therevamped “Oisix Club,” we are also moving
into a customer acquisition expansion phase.

Other Business

Oisix Shanghai
Launched services for Chinese
customers in March 2019.
Securing customer feedback to advance
improvements to products/services.

25

Overseas Business：
Purple Carrot(subsidiary)

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

Other Business

Promoting personnel exchanges post acquisition.
Developing a Japanese Vegan Menu and Improving Profitability in the Purple
Carrot Business.
Initiatives to improve profitability
Purple Carrot in Oisix
We plan to roll out a vegan menu
in Japan by the end of this year

We prioritize quality improvement throughimproved logistics operations
・Optimize packaging materials to prevent damage
・Change of box layout
for quality assurance of fruits and vegetables

Creation of the Vegan
market in Japanetc.,

Decline in churn rate due toimprovement in customer satisfaction

26

Domestic Delivery business（Three major brands）

Real Retail Business：
Shop in Shop

Domestic Delivery business（Other）

Other Business

Shop in Shop
While carefully withdraw unprofitable shop, expand the shop oftransactions centered on Oisix brands. Developing a sales format that
includes both fruit and vegetable as well as meal kitsSales

0.18bn yen
0.09

No. of shops

0.18

0.18

139

0.10

0.06

FY2016/3

FY2017/3

FY2018/3

FY2019/3

FY2020/3

1Q

1Q

1Q

1Q

1Q

27

Domestic Delivery business（Three major brands）

Real Retail Business：
Kindergarten Wholesale

Domestic Delivery business（Other）

Other Business

Kindergarten Wholesale
Sales increased due to steady growth in new No. of participatingkindergartens due to the timing of fiscal year switching.
Sales

No. of trading kindergartens

0.24bn yen

0.24

380

Recent topics

0.17

In addition to school lanch, in order to provide
children with a wealth of food experience,
we donate an original-design walking cart andhold marche where the children can experiencegreengrocers.

0.05
0.01

0.01

FY2016/3

FY2017/3

FY2018/3

FY2019/3

FY2020/3

1Q

1Q

1Q

1Q

1Q

28

3. Solving issues in the food field29

Solving issues
in the food field① Creation of a Food Start-ups ecosystem② Efficient food supply chain③ Notice of Issuance of New Shares
via Third-Party Allotment（27 June, 2019 released）

30

Solving issues
in the food field① Creation of a Food Start-ups ecosystem② Efficient food supply chain③ Notice of Issuance of New Shares
via Third-Party Allotment（27 June, 2019 released）

31

Creation of a Food Start-ups
ecosystem in JapanThe Environment surrounding Food Start-ups in US
Established Start-ups ecosystem

Fund

distributor

Food Start-ups
Financial
SupportSale
SupportExit
IPO of Beyond meat

Nestlé → Blue Bottle
Acquisition

Coca Cola → ZICO
Acquisition32

Creation of a Food Start-ups
ecosystem in Japan
An environment where food startups
are difficult to grow in Japan

NEW

NEW

Fund

distributor

Food startups
Venture capital firms
Financial
specializing in the
SupportFood field

Sale"Craft Market", which
Support gathers foodstuffs fromdomestic and overseas
startups with uniqueExit

Aim to Build an Ecosystem to Support
Startups in Japan33

Future Food FundWe established a venture capital firm specializing in the food field.
The size of the fund is expected to be several billion.
Aggressively invest in advanced food, agriculture and healthcare fields inJapan and overseas with partner companies.
Feature of Future Food Fund
Venture capitalto support
startups specializingin the field

Collaboration with overseas
venture capital firms andincubators specializingin the food industry

Launch of
an innovative food category

Start-ups in the domestic
and overseas food field

Agri-Tech
Venture capitalon new food sector in US

HealthCare

Domestic food-related companies

New
Food

Support of share offices
and test kitchens34

Oisix Craft Market
We established the Oisix Craft Market
to create a food startup ecosystem in Japan◆Domestic Startup※Plan to sale in Autumn in 2019

Ex）Base Food Co., Ltd.
・・Sell pasta / bread with a complete diet◆Collaboration with overseas
venture capital / Incubators

American New Food Category
Venture Capital

Support for shared officeand test kitchen

35

About A-FIVE◆investment and growth support to businesses
in order to further strengthen and grow the Japanese agriculture,
forestry and fisheries industries.

Support for the sixth industrialization
Support for business restructuring and entry
Support for the rationalizationof food distribution

Total investment 127※As of end of March 201836

About the Approach with A-FIVE

we will sale products from A-FIVE investees and partner
Producers in the "Craft Market",
A-FIVE investees
and partner Producers◆candidate

Investment
and growth
supportTsuno Wine Co., ltd.

Other investees
37

Solving issues
in the food field① Creation of a Food Start-ups ecosystem② Efficient food supply chain③ Notice of Issuance of New Shares
via Third-Party Allotment（27 June, 2019 released）

38

About the Approachwith Yamato HD

・No.1 Natural fooddelivery company
・5,000 directly
contracted producers

・No.1 domestic
courier service share
・Logistics / Delivery
Network basedon the whole world

Entered into a business alliance agreement
to utilize the assets of both companies
to resolve issues
in the entire food distribution supply chain
39

Background of the partnership

Customer

Producers
Order

Procurement
logistics

Inter-baselogistics

Last
one
mile

Outsourcetransportation
to

There is room for improvement

There are a wide range of supply chain issues
to be addressed40

Background of the partnership

・Order management
・Transport ofagricultural products
etc,.

VegeNeco ProjectIn 2017, we have launched the"VegeNeco project” as a open
platform that offers 1-stop,efficient delivery from Producers
ordering to customers.
41

Background of the partnership
Recent Efforts（since March in 2019）
Order exchange, Data management, Form creation etc.,

From Analog Method
to PC or Smartphone【Introduced Companies】“Nagasaki Nanbu” Production Union
Salad Bowl Co., ltd.

・User interface was improved based on interviews
with introduced users, and it was re-released in June.

・Introduced services at seminars gathered by Producers,
steadily increasing the number of companies using the service.
42

Background of the partnership
In Hong Kong, we began using a high-quality, integrated
cold storage transportation network using a cold warehouseowned by Yamato HK.

Producers

HongKong

Ebina
StationYamatoTransport
HanedaChronoGate

YamatoLogistics
HK
Cold storage
warehouse

Customer

YamatoYamato Transport
Other

43

Solving issues
in the food field① Creation of a Food Start-ups ecosystem② Efficient food supply chain③ Notice of Issuance of New Shares
via Third-Party Allotment（27 June, 2019 released）

44

Third-Party Allotment◆Issuance of New Shares via Third-Party Allotment
・Subscriber of
Allocated Shares： Yamato Holdings Co., ltd.

・Number of
New Shares
to be Issued： 586,000 shares： A-FIVE（1.71% of the total number of shares）

Yamato HD ：219,700 shares（Percentages of Shares 0.64%）

A-FIVE：366,300 shares（ Percentages of Shares 1.07%）

・Aggregate
Funding Amount： JPY 799,890,000

・Specific Useof Funds Procured： Investment for capital expenditures tobuild a network for the entire food
distribution chain.
45

Overview of the plannedpurchaser of the allotted shares◆ Yamato Holdings Co., ltd.
・Representative ： Nagao Yutaka
・Capital： JPY 127,234 million

・Business
Description： Business management of companies
engaged in the delivery business, etc.

◆ A-FIVE
・Representative ： Mitsumasu Yasuhiro・Capital： JPY 17,551 million

・Business
Description： Investment and growth support
to businesses in order to further strengthen
and grow the Japanese agriculture,
forestry and fisheries industries46

4. Social Activities

47

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.
48

A Million People Candle night
Initiatives to propose a sloping lifestyle for the sustainability of society without
using electricity
There were 2.5 thousand visitors despite the rainy.

49

Tokyo Harvest 2019
Marking its seventh anniversary this year, Tokyo Harvest 2019 will has been scheduled
for September.
A two day opportunity to experience the “great taste” of products from a multitude ofJapanese regions and the “awesomeness” of the producers that produce them.

Tokyo Harvest, one of Japan’s top harvest
festivals, expressed gratitude and respect
for those who produce our food: farmers,
fisher people, and ranchers.
Tokyo Harvest is an enjoyable opportunity
to rediscover the culture, traditions, andhistory of each region and to community
information on delicious Japanese farefrom Tokyo to the nation and to the world.

50

Sustainable “Doyo no Ushinohi”(Dog days of Summer)
Under the concept of a sustainable “dog days of summer,” we have set-up a
special site to convey the roots of “Doyo no ushi no hi” beginning with aproposal for proper consumption of eels which are now endangered.
◆Proposal on how to eat eel“U Bowl” that can be enjoyedwith a small amount of eel“Bowl with Pacific saury/conger”
that can be enjoyed with alternative ingredients◆”Sasaeel Unagi Fund”
Aiming to safeguard/bring back eel
resources, ¥50 of the purchase price of
certain products goes to the fund.
Proceeds are used to establish “stone
cages” for the release of eels & to provide
them with shelter.

51

5. APPENDIX・DATA SHEET

52

Corporate Overview

Name：

Oisix ra daichi Inc.

Location：

Shinagawa-ku, Tokyo

Established：

June 2000

Representative： Kohey Takashima, Representative Director & CEO
Capital：1,286,253,000 yen

Employees：

735 (consolidated), as of the end of March 201953

Overview of Affiliates
Consolidated subsidiaries
Tokushimaru 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.

Three Limes Inc.

Meal kit delivery service in the United States

Affiliates
Nihon Agri Inc.

Exports agricultural products.

Welcome Co., Ltd

Lifestyle business through retail and restaurant businesses
Manufacture and sale of imported and processed foods, and operation of cafes
54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)55

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.

56

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

57

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

58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

59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
decisions60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）
61

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

63

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 management64

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.

65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 rule66

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

Sales

1Q

2Q

FY2018/3

3Q

4Q

5,379 10,718 17,113 23,016

1Q

2Q

FY2020/3

FY2019/3

3Q

4Q

1Q

2Q

3Q

4Q

1Q

9,602 18,935 30,007 39,987 16,853 31,720 48,906 64,026 16,265

Operating Profit

169

270

625

752

141

237

692

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

Net income
Attributableto ownersof theparent

119

187

429

515

72

93

336

237

537

893

2,533

2,387

270

67

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

Oisix

Daichi

Radish Boya

OtherBusiness

FY2019/3

FY2020/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

Sales

5,790

11,47018,481

24,7996,863

13,76922,19029,6198,308

Marginal
profit

674

1,392

2,421

3,288

970

1,943

3,371

4,036

933

Sales

2,790

5,487

8,508

11,215

2,769

5,440

8,405

10,902

2,587

Marginal
profit

539

1,078

1,650

2,095

479

960

1,536

1,989

457

Sales

-

-

-

-

5,811

9,926

14,34618,0283,770

Marginal
profit

-

-

-

-

1,030

1,765

2,657

3,342

688

Sales

1,109

2,163

3,263

4,250

1,482

2,755

4,198

5,793

1,663

Marginal
profit

185

384

571

760

154

290

479

724

256

1,257

2,853

3,951

5,253

2,024

3,844

5,779

7,779

1,792

Companywide fixed costs,
Goodwill etc

68

Data Sheet：Main KPIKPI trend
FY2018/3

Oisix

Daichi

RadishBoya

FY2019/3

FY2020/3

4Q

1Q

2Q

3Q

4Q

1Q

Subscribers(number)

169,664

179,942

189,352

197,272

205,976

225,553

ARPU
（yen）

11,602

11,562

11,127

11,534

11,183

11,244

5,925

6,002

5,973

6,150

6,015

5,887

1.96

1.93

1.86

1.88

1.86

1.91

Subscribers(number)

44,933

44,111

43,83542,996

40,21038,571

ARPU（yen）

19,24020,122

19,386

21,84819,75821,232

7,726

7,770

7,553

8,529

7,811

7,990

2.49

2.59

2.57

2.56

2.53

2.66

Subscribers(number)

78,062

74,94972,101

66,233

63,14461,507

ARPU（yen）

16,63917,277

17,177

18,98817,26418,301

5,278

5,460

5,616

6,114

5,869

6,055

3.15

3.16

3.06

3.11

2.94

3.02

Price/
purchase（yen）
Purchase
Frequency(number)

Price/
purchase（yen）
Purchase
Frequency(number)

Price/
purchase（yen）
Purchase
Frequency(number)69

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.

70