Glory : FY2022 Financial Results

(TRANSLATION FOR REFERENCE ONLY)

GLORY LTD. (6457) Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

This is a translation of the original Japanese text of the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2023." Should there be any discrepancy between any part of this translation and the original Japanese text, the latter shall prevail.

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

Company Name:	GLORY LTD .		May 11, 2023
Stock exchange listing:	Tokyo
Code number:	6457	URL:	https://corporate.glory-global.com/
Representative:	Motozumi Miwa	President & Representative Director
Contact person:	Yukihiro Fujikawa	Managing Executive Officer; Executive General Manager, Finance Headquarters

TEL [phone]

Scheduled date of Ordinary General Meeting of Shareholders: Scheduled date of dividend payments:

Scheduled filing date of Annual Securities Report: Preparation of earnings supplementary explanatory material: Holding of earnings presentation:

June 23, 2023

June 26, 2023

June 26, 2023

Yes

Yes (for analysts and institutional investors)

(Amounts less than one million yen are rounded downward.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated Operating Results

(The percentages show the changes from the corresponding period of the previous year.)

	Net sales		Operating income	Ordinary income	Net income attributable to
		owners of parent
	(Millions of yen)	(%)	(Millions of yen)	(%)	(Millions of yen)	(%)	(Millions of yen)	(%)
Year ended	255,857	12.9	522	(94.9)	(2,720)	―	(9,538)	―
March 31, 2023
Year ended	226,562	4.2	10,195	(28.2)	10,404	(26.4)	6,410	12.4
March 31, 2022

(Note) Comprehensive income
	Year ended March 31, 2023:	¥3,362 million [ (80.8)%]
	Year ended March 31, 2022:	¥17,509 million [	3.1%]
			Net income per	Fully diluted net	Return on equity
			share	income per share
			(Yen)	(Yen)	(%)
	Year ended		(167.02)	―	(4.8)
	March 31, 2023
	Year ended		106.02	―	3.2
	March 31, 2022

Ordinary income

to total assets

(%)

(0.7)

3.0

Operating income

to net sales

(%)

0.2

4.5

(Reference) Income or loss from investments accounted for by the equity method

Year ended March 31, 2023:	¥(2,978) million [	― %]
Year ended March 31, 2022:	¥(58) million [	― %]

EBITDA (Operating income + Depreciation + Amortization of goodwill)

Year ended March 31, 2023:	¥18,988 million [	(31.0)%]
Year ended March 31, 2022:	¥27,505 million [	(6.5)%]

Net income before amortization of goodwill (Net income attributable to owners of parent + Amortization of goodwill)

Year ended March 31, 2023:	¥(2,834) million [	― %]
Year ended March 31, 2022:	¥11,529 million [	12.9%]

(Note) During the second quarter of the fiscal year ended March 31, 2023, the Company finalized the provisional accounting treatment for business combinations, and the figures for the year ended March 31, 2022 reflect the details of the finalization of the provisional accounting treatment.

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(TRANSLATION FOR REFERENCE ONLY)

GLORY LTD. (6457) Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

(2) Consolidated Financial Position

		Total assets		Equity	Ownership equity ratio	Equity per share
			(Millions of yen)		(Millions of yen)		(%)	(Yen)
	As of March 31, 2023		381,273		195,984		50.7	3,474.76
	As of March 31, 2022		363,269		208,607		56.5	3,395.33
(Reference) Ownership equity
	As of March 31, 2023:	¥193,166 million	As of March 31, 2022:	¥205,318 million

(Note) During the second quarter of the fiscal year ended March 31, 2023, the Company finalized the provisional accounting treatment for business combinations, and the figures as of March 31, 2022 reflect the details of the finalization of the provisional accounting treatment.

(3) Consolidated Cash flows

		Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
		operating activities	investing activities	financing activities	at end of period
		(Millions of yen)		(Millions of yen)		(Millions of yen)	(Millions of yen)
	Year ended		(16,486)			(9,364)			8,526		36,693
	March 31, 2023
	Year ended		10,315			(25,739)			(942)		52,316
	March 31, 2022
2. Dividends
			Dividends per share		Total dividends	Dividend	Dividends to
	(Record date)	First	Second		Third	Year-end		Annual	payout ratio	equity ratio
			(annual)
	quarter-end	quarter-end	quarter-end		(consolidated)	(consolidated)
		(Yen)	(Yen)		(Yen)	(Yen)		(Yen)	(Millions of yen)	(%)	(%)
	Year ended	―	34.00		―	34.00		68.00	4,132	63.2	2.1
	March 31, 2022
	Year ended	―	34.00		―	34.00		68.00	3,855	―	2.0
	March 31, 2023
	Year ending
	March 31, 2024	―	36.00		―	36.00		72.00		20.6
	(forecast)

3. Consolidated Financial Forecast for the Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

(The percentages show the changes from the corresponding period of the previous year.)

							Net income		Net income
	Net sales		Operating income	Ordinary income	attributable to owners
		per share
							of parent
	(Millions of yen)	(%)	(Millions of yen)	(%)	(Millions of yen)	(%)	(Millions of yen)	(%)	(Yen)
Six months ending	142,000	26.6	6,000	―	5,000	―	2,000	―	35.02
September 30, 2023
Full year	335,000	30.9	35,000	―	33,000	―	20,000	―	350.21

(Reference) EBITDA

Six months ending September 30, 2023: ¥15,200 million

Year ending March 31, 2024 (full year): ¥53,500 million Net income before amortization of goodwill

Six months ending September 30, 2023: ¥5,300 million

Year ending March 31, 2024 (full year): ¥26,700 million

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(TRANSLATION FOR REFERENCE ONLY)

GLORY LTD. (6457) Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

Notes:

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries involving a change in the scope of consolidation): None
2. Changes in accounting policies and estimates, and restatements

(a) Changes in accounting policies associated with revisions of accounting standards, etc.:	Yes
(b) Changes in accounting policies other than (a):	Yes
(c) Changes in accounting estimates:	Yes
(d) Restatements:	None

(Note) For more information, please refer to "3. Consolidated Financial Statements and Significant Notes Thereto (5) Notes to Consolidated Financial Statements, Changes in Accounting Policies and Changes in Accounting Policy That Are Difficult to Make a Distinction from Changes in Accounting Estimates" on page 19 of the Attachment.

1. Total number of shares issued (common shares)
2. 1. Total number of shares issued at the end of the period (including treasury shares)

As of March 31, 2023:	58,938,210 shares
As of March 31, 2022:	63,638,210 shares
(b) Number of treasury shares at the end of the period
As of March 31, 2023:	2,873,306 shares
As of March 31, 2022:	2,866,078 shares
(c) Average number of shares
Year ended March 31, 2023:	57,108,564 shares
Year ended March 31, 2022:	60,467,088 shares

(Note) In addition to the number of treasury shares at the end of the period, there also existed Company shares owned by the "Board Incentive Plan (BIP) Trust Account" and "Employee Stock Ownership Plan (ESOP) Trust Account." (As of March 31, 2023: 473,645 shares, As of March 31, 2022: 301,284 shares)

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Non-consolidated Operating Results

(The percentages show the changes from the corresponding period of the previous year.)

	Net sales		Operating income	Ordinary income	Net income
	(Millions of yen)	(%)	(Millions of yen)	(%)	(Millions of yen)	(%)	(Millions of yen)	(%)
Year ended	127,160	5.0	(2,456)	―	3,602	(58.4)	(344)	―
March 31, 2023
Year ended	121,075	(6.4)	2,736	(63.0)	8,670	(29.7)	9,855	0.6
March 31, 2022
	Net income per share	Fully diluted net income
	per share
		(Yen)		(Yen)
Year ended	(6.04)		―
March 31, 2023
Year ended	162.99		―
March 31, 2022

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(TRANSLATION FOR REFERENCE ONLY)

GLORY LTD. (6457) Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

(2) Non-consolidated Financial Position

		Total assets		Equity	Ownership equity ratio	Equity per share
			(Millions of yen)		(Millions of yen)		(%)	(Yen)
	As of March 31, 2023		295,885		175,088		59.2	3,149.57
	As of March 31, 2022		282,619		189,258		67.0	3,129.75
(Reference) Ownership equity
	As of March 31, 2023:	¥175,088 million	As of March 31, 2022:	¥189,258 million

(Note) Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

(Note) Explanation regarding the appropriate use of financial forecasts and other special items (Caution concerning forward-looking statements)

The forward-looking statements such as operational forecasts contained in this report are based on the information currently available to the Company and certain assumptions which the Company regards as legitimate, and are not promises regarding the achievement of forecasts. Actual performance may differ greatly from these forecasts due to various present and future factors. For the assumptions and other related matters concerning the financial forecasts, please refer to "1. Overview of Operating Results and Others (4) Future Outlook" on page 8 of the Attachment.

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(TRANSLATION FOR REFERENCE ONLY)

Attachment

Contents

GLORY LTD. (6457) Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

1. Overview of Operating Results and Others	6
(1)	Overview of Operating Results for the Fiscal Year	6
(2)	Overview of Financial Position for the Fiscal Year	7
(3)	Overview of Cash Flows for the Fiscal Year	7
(4)	Future Outlook	8
(5)	Basic Policy on Profit Distributions and Dividends for the Current and Next Fiscal Years	8
2. Basic Approach to Selection of Accounting Standard	10
3. Consolidated Financial Statements and Significant Notes Thereto	11
(1)	Consolidated Balance Sheet	11
(2)	Consolidated Statements of Income and Comprehensive Income	13
	Consolidated Statement of Income	13
	Consolidated Statement of Comprehensive Income	14
(3)	Consolidated Statement of Changes in Equity	15
(4)	Consolidated Statement of Cash Flows	17
(5)	Notes to Consolidated Financial Statements	19
	Notes Regarding Assumption of a Going Concern	19
	Changes in Accounting Policies	19
	Changes in Accounting Policy That Are Difficult to Make a Distinction from Changes in Accounting Estimates	19
	Segment Information	19
	Per Share Information	23

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