Management integration of Oisix and the Society for the Protection of the Earth Certified as the first project of the Agricultural Competitiveness Enhancement Support Law Corporate Release | Nikkan Kogyo Shimbun Electronic Edition

Certified as the first project of the Agricultural Competitiveness Enhancement Support Law

(2017/9/21)

Category: Other

Release issuing company: Oisix Dot Daichi Co., Ltd.

-"Rationalization of distribution of agricultural products" and "improvement of productivity" are the grounds for certification-Oisix Co., Ltd. (Oisix Dot from July 1, 2017), which develops food delivery such as organic and specially cultivated agricultural products and additive-free processed foods The company name was changed to Daichi Co., Ltd.) and the management integration of the Daichi Preservation Society, which was scheduled for October 1, this year, was certified as the first project by the Ministry of Agriculture, Forestry and Fisheries based on the provisions of the Agricultural Competitiveness Enhancement Support Law. it was done. As a result, we will receive a special tax system (extra depreciation related to capital investment) as a support measure. In addition, by accreditation, in the management integration of Oisix and the Society for the Protection of the Earth, sales promotion will be strengthened and customer convenience will be improved by sharing marketing know-how related to Internet sales, etc., and sales opportunities for producers will be expanded. By developing, producing, and selling value-added products that meet the diversification of needs, we have realized the stability and development of producers' management, sharing common parts in the supply chain, and improving profitability by improving efficiency. It is expected that the agricultural industry will strengthen its competitiveness and contribute to sound development. We will further expand the market by providing high value-added services in the growing market of food and food delivery business that considers safety, and promote further contribution to a better society through food. ■ Significance of business integration Due to the business integration of Oisix and the Earth Protection Association, the total sales of both companies will be 36 billion yen (fiscal year ending March 2017), making it the number one natural food delivery market in the ever-growing food delivery market. (Refer to Graph A * FY2016 results). The number of contract producers of Oisix (number of agricultural producers / as of the end of March 2017) is about 1,200, and the number of associations to protect the earth is 1,500. The number of members is about 137,000, and the number of members of the Earth Conservation Society is about 46,000, totaling about 183,000 (as of the end of March 2017), leading the food delivery market, which is expected to grow in the future. As a company, we will fulfill the function of connecting production areas and dining tables all over Japan in a one-stop manner. ■ Specific details that form the basis of certification [Rationalization of distribution of agricultural products, etc.] ¶ It can be said that the EC conversion rate in food-related fields is extremely low compared to other fields. EC conversion rate ”). Expand sales by sharing marketing know-how and sales sites, mutual supply of food, etc., and improve the Internet sales ratio of the sales method of the Earth Protection Association centered on catalog sales from 40% level to 60% level in 2020 We will expand sales opportunities for producers by increasing the number of agricultural producers with approximately 2,700 business partners. ¶ The time-saving meal kit, which has been well received due to the increase in double-income families and working women, and the total number of series shipped has exceeded 6 million (as of the end of June 2017) since its launch in July 2013, further expands the number of customers. By increasing the production capacity of manufacturing plants by 2.5 times in response to the increase in demand due to such factors, we aim to expand the development, production and sales of value-added products, and to increase the procurement volume of agricultural products. It contributes to the stability and development of management. [Improvement of productivity] ¶ Reduce delivery costs by reducing material costs by about 20 million yen (FY2018) by sharing logistics and sharing know-how of distribution centers, etc.¶ Improvement from 80% level before business integration to nearly 100% by 2020 by delivery What is the Agricultural Competitiveness Enhancement Support Law? The "Agricultural Competitiveness Enhancement Support Law" was enforced on August 1, this year, and agriculture In order to develop sustainably in the future, in addition to promoting structural reforms in response to changes in economic and social conditions, farmers cannot respond to their own efforts with "high quality and inexpensive agricultural materials." Agricultural agriculture by establishing measures to be taken by the national government in order to "supply" and "rationalize agricultural product distribution and processing" and by taking measures to promote business restructuring of businesses such as agricultural materials and agricultural product distribution. This is to strengthen the competitiveness of agriculture. "Agricultural competitiveness" refers to the ability to achieve sustainable agricultural development by increasing agricultural productivity and ensuring high profitability. The title of this law is carried out by the farmers themselves by taking measures to solve structural problems that cannot be realized by the efforts of the farmers alone, such as the supply of high-quality and inexpensive agricultural materials and the rationalization of agricultural product distribution. Based on the purpose of "supporting" efforts to strengthen competitiveness, the "Agricultural Competitiveness Enhancement Support Law" is adopted. The contents of the support measures are as follows: 1. Reorganization, special tax system for capital investment, 2. Investment by Agriculture, Forestry and Fisheries Growth and Industrialization Support Organization, 3. Low interest loan from Japan Finance Corporation, 4. Debt guarantee by Japan Finance Corporation, 5. Debt guarantee of Japan Finance Corporation, 6. Procedures for notifying creditors when transferring business. (Quoted from the Ministry of Agriculture, Forestry and Fisheries "Agricultural Competitiveness Enhancement Support Law", 193rd Ordinary Diet Third Abe Cabinet "Agricultural Competitiveness Support Law" in June 2017) About-The overall market size of food delivery in FY2015 is estimated to be about 3.3 trillion yen, and it is expected that it will continue to grow by about 3-5% annually, and is expected to reach about 3.6 trillion yen in FY2017. It has been. Furthermore, competition is expected to intensify in the future, such as the expansion of the domestic GMS net super business and the development of fresh food delivery services by major mail-order companies such as Amazon. In such a market environment, consumers' awareness of safety and security continues to be high, and in recent years, needs have diversified due to changes in lifestyles and values, such as an increase in double-income households and an increase in health consciousness due to the advancement of women into society. It has turned into. By concentrating the management resources of both companies through business restructuring and providing high-value-added foods and services in the ever-growing food delivery market, we will provide consumers with a rich diet and lead the market. We are aiming for. We believe that this certification was the basis for the certification, based on the fact that we are expanding by grasping the needs of consumers in addition to "rationalizing the distribution of agricultural products" and "improving productivity". .. About Oisix Dot Daichi Co., Ltd. Oisix Dot Daichi Co., Ltd. (Representative: Kohei Takashima) has a variety of organic and specially cultivated vegetables, processed foods that do not use additives as much as possible, with the concept of "foodstuffs that children can eat with peace of mind". Since June 2000, we have been conducting a business to provide information useful for food and rich and enjoyable eating habits on the online site "Oisix" (http://www.oisix.com/). From July 2013, in order to meet the needs of mainly working women who are busy and do not want to compromise on their daily diet, we will use safe and secure ingredients that meet Oisix standards, and we will be able to produce 5 or more kinds of vegetables. We have started the development of the menu kit "Kit Oisix", which completes two dishes, vegetables and side dishes, in 20 minutes. In October 2017, we plan to integrate the business with the "Earth Protection Association," which is a pioneer in the sale of organic vegetables, creating synergies in terms of producer networks and logistics, with the aim of further expanding the market. I am. Prior to the business integration, the company name was changed from Oisix to Oisix Dot Daichi from July 2017. * Reference information * Goals of business restructuring plan (1) Goals of business related to business restructuring Through the management integration of Oisix Co., Ltd. and the Earth Protection Association, improving customer convenience by sharing marketing know-how, producers Expand sales opportunities, stabilize and develop management, share common parts in the supply chain and improve profitability by improving efficiency, further expand the market by providing high value-added services in growth markets, and food Through this, we aim to promote further contributions to a better society. (2) Numerical targets for rationalization of agricultural product distribution, etc. and numerical targets for improving productivity 1. Rationalization of agricultural product distribution, sharing of marketing know-how and sales sites, expansion of sales through mutual supply of food, catalog sales, etc. The number of agricultural producers increased by about 2,700 by reviewing the sales method of the Earth Protection Association centered on Development of value-added products, such as increasing the productivity of manufacturing plants by 2.5 times in response to the increase in demand for time-saving meal kit products due to the expansion of sales opportunities for producers and the diversification of consumer needs.・ Contribute to the stability and development of producers' management by increasing the amount of agricultural products procured by expanding production and sales. 2. Improving productivity such as agricultural product distribution ・ Sharing of distribution and know-how of distribution centers Reduced delivery costs by reducing material costs by approximately 20 million yen (FY2018) through sharing, etc. ・ The loading rate of our own delivery vehicles will be reduced from 80% before business reorganization to 100% by FY2020 by joint delivery. Details of business restructuring related to the nearby improvement business restructuring plan (1) Contents of the business related to the business restructuring Business subject to the plan Food and beverage retail business (organic vegetables, specially cultivated agricultural products, additive-free processed foods, etc.) Safety Home delivery business of food and ingredients in consideration of Not applicable (4) Details of measures to implement business restructuring Article 68-34 of the Special Taxation Measures Law (Additional amortization of business restructuring promotion machines, etc. when certified as a business restructuring plan) Business restructuring Start time and end time October 1, 2017-March 31, 2020 Business company overview ・ Trade name: Oisix Dot Daichi Co., Ltd. ・ Address: 1-11-2 Osaki, Shinagawa-ku, Tokyo Gate City Osaki East Tower 5th floor ・ Chairman: Kazuyoshi Fujita (scheduled to take office from October 1st) President: Kohei Takashima ・ Capital: 929 million yen To details of corporate press release To PRTIMES top

Information source: PR TIMES Publisher of this release: https://prtimes.jp/main/html/rd/p/000000208.000008895.html

* Product prices, specifications, service details, etc. described in the news release are as of the date of announcement. Please note that it is subject to change without notice.