Glory : Establishment of the 2026 Medium-Term Management Plan

(TRANSLATION FOR REFERENCE ONLY)

May 10, 2024

News Release

Company Name:	GLORY LTD.
Representative:	Akihiro Harada, President
Headquarters:	3-1, Shimoteno 1-chome, Himeji,
	Hyogo, JAPAN
Securities Code:	6457
Stock Exchange:	Tokyo (Prime)
Accounting Term:	March

Establishment of the 2026 Medium-Term Management Plan

GLORY LTD. (the "Company") hereby announces the establishment of the 2026 Medium-Term Management Plan (the "Plan") for the three-year period from FY2024 to FY2026.

This period is the third step towards achieving our Long-Term Vision, and the Company marks the time to start harvesting the business that we have been seeded and nurtured.

Under the concept of "GLORY TRANSFORMATION 2026 -Shape the future with GLORY-", The Company aim to drive customers' Digital Transformation (DX) with best-in-class products and software platforms combined. In the new business domain, the Company will establish KIOSK and DMP businesses especially for food and beverage market as new pillars of revenue by maximizing synergies with companies acquired and concluded capital and business alliances, while also strive to further increase profitability in the core business. Furthermore, by implementing these business strategies and enhancing shareholder returns, the Company will strive to achieve a PBR 1.0 or more.

For details of the Plan, please refer to the attached document.

1. Concept - Where we are in the Long-Term Vision

(TRANSLATION FOR REFERENCE ONLY)

2. FY2026 Financial Target

3. Shareholder Returns

In the three fiscal years of the Plan (from the fiscal year ending March 31, 2025 to the fiscal year ending March 31, 2027), which began in April 2024, in addition to following the Company's basic policy of "continuing stable dividends while investing in future business growth and maintaining financial strength," we have set a target of "progressive dividends, based on the annual dividend for the fiscal year ended March 31, 2024 (annual dividend of ¥106 per share), and dividends on shareholders' equity (DOE) of 3% or more" and aim to increase dividends in a stable and continuous manner.

# # #

About GLORY LTD.

GLORY LTD., headquartered in Himeji, Japan, is a pioneer in the development and manufacture of cash handling machines and systems. GLORY provides a variety of products built on its leading-edge recognition/identification and mechatronics technology, such as cash handling machines, cash management systems, vending machines, and automatic service equipment. Committed to meeting society's wide-ranging needs, GLORY serves the financial, retail, vending machine, amusement and gaming industries in more than 100 countries. For more information, please visit GLORY Group website at https://corporate.glory-global.com/.

Contact:

Shigenobu Nishida

General Manager

Corporate Communications Department

Management Strategy Headquarters

Tel: [phone]

© GLORY LTD. All Rights Reserved.	1

1. 2023 Medium-Term Management Plan Summary
2. Financial Target
3. Concept & Basic Policies
4. Business Strategies

1. Overall Strategies

1. Target Markets (Retail, Financial, and F&B)

5. Business Foundation Strategies

1. DX Strategies

1. HR Strategies

1. Capital & Financial Strategies IV. Climate Initiatives

1. Risk Management

© GLORY LTD. All Rights Reserved.

2

パワポの品質と効率を上げる

1. 2023 Medium-Term Management Plan Summary
2. Financial Target
3. Concept & Basic Policies
4. Business Strategies

1. Overall Strategies

1. Target Markets (Retail, Financial, and F&B)

5. Business Foundation Strategies

1. DX Strategies

1. HR Strategies

1. Capital & Financial Strategies IV. Climate Initiatives

1. Risk Management

© GLORY LTD. All Rights Reserved.

3

FY2021-2022: Large drop in profit due to Covid-19 pandemic and shortage of semiconductors etc.

FY2023: Sales, operating profit, and ROE all exceeded the targets.

FY2023 (Billion Yen)

Net Sales & Operating Profit (FY2015 - FY2023)

(Billion Yen)

Net Sales	Net Sales	400
		Net Sales		Operating Profit		Operating Profit		ROE
(Overall)	(New Business Domain)
					Before goodwill amortization
								Before goodwill amortization
Result 372.5	Result 36.0	300
							256

373

59

80

60

					227		227	236		227
Plan	300	Plan	40	223	224	217
		200

51

40

Operating Profit

	After	Before
	goodwill amortization	goodwill amortization
Result	51.3	58.8
Plan	30	35
	ROE
	After	Before
	goodwill amortization	goodwill amortization
Result 14.1％	17.7％
Plan	9.5％	12.0％

26	24	24	24					14.1%
	22
21	20		21
20	18	19			20
100				14	15
			6.5%		10
	5.4%	5.3%				7
4.5%		4.5%
			3.0%	3.2%
					1
0							0
FY2015	2016	2017	2018	2019	2020	2021	2022	2023
		① Covid-19 pandemic			①	-4.8%
		② Shortage of semiconductors etc.			②
					③
		③ Soaring parts prices			④
		④ Embezzlement at domestic subsidiary
Topics			⑤
⑤ Termination of ERP deployment
		⑥ Security incident					⑥

① New coin/banknote issuance		①	①
②	②	②
② M&As (Acrelec, Revolution, Flooid)

© GLORY LTD. All Rights Reserved.

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Offset the decline in operating cashflow with cash on hand and external funding to enable well-planned shareholder returns

and strategic investment.

Cash Allocation (Plan)

(Billion Yen)

Cash Allocation (Result)

Cash Inflow

Cash Outflow

➢ Results vs. Plans	(Billion Yen)

Cash on hand

▲33

Repayment

Sales cashflow

- 37

Cash Inflow

Cash Outflow

*Allocate working capital larger than surplus cash on hand

24

• Significantly lower due to a drop in earnings

caused by COVID-19 pandemic and parts

Cash on hand 5

Operating cashflow

70

External funding

40

Repayment

15

CAPEX

30

Shareholder

returns

25

Strategic

investment

45

Cash on hand 5

	CAPEX
Operating	25

cashflow

33

Shareholder

returns

24

External funding

71Strategic investment

69

shortage

External funding

+31

• Significantly higher due to increased operating capital and strategic investment, and decreased sales cashflow

Strategic investment +24

• Significantly higher due to strategic M&As and capital / business alliances to execute business strategies

115

142

© GLORY LTD. All Rights Reserved.

5

• Accelerate business growth to develop "next generation"

• 2020 MTP and 2023 MTP focused on strategic investment and business alliances in the Retail, F&B (Food & Beverage), and Financial markets. Business expanded in the areas compatible with Glory's core businesses using well-established customer channels.
• Next-generationF&B and DMP* businesses identified as promising (e.g., Acrelec), although sales target not achieved in New Business Domain.

*DMP (Data Management Platform): Platform used for data-oriented services. It gathers and accumulates online/offline data e.g., customer behavior to be used for efficient advertising etc.

2020 MTP	2023 MTP
FY2021	FY2022	FY2023

Net Sales

(New Business Domain)

FY2023(Billion Yen)

(BillionResultYen)36.0 Plan 40.0

40

36

3025

24

20

13

10

3

0

FY2019 2020 2021 2022 2023

Additional capital was invested in FY2022.

Additional capital was invested in FY2021.

F&B	Expanded solution businesses with Acrelec
(kiosks) and SHOWCASE GIG

	Expanded software solution businesses
Retail	through acquisitions and business alliances
	which brought in expertise in retail solutions

	Developed new solutions and started
Financial	shared service businesses to accelerate in-
store self-service operations

© GLORY LTD. All Rights Reserved.

6

• Maximize core business profits by innovation
• Retail market sales increased, supported by opportunities gained with leading global retailers.
• Developed stable revenue streams from service contracts gained through enhanced global service functions.

Net Sales (Retail)

Net Sales (Recurring-Revenue Business)

(Billion Yen)	Incl. Retail & Transportation Market (domestic) and overseas retail market
400	Excl. Acrelec sales	80%
		60%

(Billion Yen)	Domestic & Overseas
400

80%

60%

300
33%	34%
29%

38%

41%	39%	40%
		20%

300	35%	38%	38%	43%

46%	Sales40%of new
	34% banknote work
	(Temporary)

20%

200											0%	200											0%
											-20%												-20%
100											-40%	100											-40%
							104	146	-60%								98	118	127
69	74	74	86		83	85	83	-60%
0											-80%	0											-80%
FY2018	2019	2020	2021	2022	2023
			FY2018	2019	2020	2021	2022	2023
			Retail		Financial				F&B(Acrelec)						Recurring			Non-recurring		Recurring revenue
			Amusement		Others				Retail sales ratio		Excluding the sales associated with new coin/banknote issuance

© GLORY LTD. All Rights Reserved.

7

• Maximize core business profits by innovation

Overseas Business	Domestic Business
Retail market sales increased, supported by opportunities	Record-high net sales in FY2023, supported by machine replacement
gained with leading global retailers	and software modifications associated with new banknote issuance in
	Japan, as well as by strong sales in amusement market

	Net Sales				72		Net Sales				187
Overseas Retail Market	Non-Product
				by Business Segment			6
(Billion Yen)		Product			Others
			(Billion Yen)
								28
				59			Amusement Market
						133			Retail & Transportation Market
								Financial Market
						3	121
						113
						21	5			75
						3
			39					99	100
						21
						11
								3
									3
						52			12	15
		25					53	49
	22
								48	46
17
											78
						57		50
							42	36	37
FY2018	2019	2020	2021	2022	2023	FY2018	2019	2020	2021	2022	2023

© GLORY LTD. All Rights Reserved.

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