Glory : FY2023 Material for Investor Conference

GLORY LTD.

FY2023 Consolidated Financial Results

1	FY2023 Performance Overview

1.	Financial Results	・・・	P.3
2.	Factors of Operating Income Change	・・・	P.4
3.	Sales & Operating Income by Business	・・・	P.5
	Segment

2	FY2023 Performance Details

1.	Sales & Operating Income by Business	・・・	P.7
	Segment
2.	Work associated with New Banknote	・・・	P.13
	Issuance in Japan
3.	Shareholder Returns	・・・	P.14

3	2026 Medium-Term
Management Plan

1. 2023 Medium-Term Management	・・・	P.16
Plan: Summary
2. 2026 Medium-Term Management	・・・	P.23
Plan
• Concept & Basic Policies	・・・	P.24
•	Financial Target	・・・	P.25
•	Increasing PBR	・・・	P.27
• Concept & Basic Policies -	・・・	P.28
	Material issues addressed in
	management strategies
• Business Strategies - Overseas	・・・	P.34
• Business Strategies - Domestic	・・・	P.38
• Capital & Financial Strategies	・・・	P.43

4	FY2024 Financial Forecast
1.	FY2024 Forecast	・・・	P.45

2.	Sales & Operating Income by Business	・・・	P.46
	Segment
3.	Sales by Geographical Segment of	・・・	P.47
	Overseas Market
4.	Shareholder Returns	・・・	P.48

References

• FY2023 Financial Results

	Consolidated Statement of Income &	・・・	P.51
	Statement of Comprehensive Income	・・・	P.52
	Consolidated Balance Sheet
		P.53
	Consolidated Statement of Cash Flows	・・・
	Sales & Operating Income by Business	・・・	P.54
	Segment (vs. Forecast)	・・・	P.55
	CAPEX, Depreciation & Amortization, and
	R&D
•	FY2024 Financial Forecast	・・・	P.56

1

FY2023 Performance Overview

Financial Results

Sales

Income

Increased by production recovery after prolonged delay caused by parts shortages and full-scale work associated with the new Japanese banknote issuance (i.e., machine replacement and system modifications).

Increased by higher sales and lower material prices (e.g., semiconductors)

Recorded the highest sales, operating income, ordinary income and net income attributable to owners of parent

FX Impact: +15,731 million yen (Sales) / +1,097 million yen (Operating Income)

		(Millions of yen)				Full year							Y-on-Y
		FY2021	Ratio	FY2022	Ratio	FY2023	Ratio
		Net Sales			226,562	100.0%		255,857	100.0%		372,478	100.0%	+116,621
						45.6%
		Maintenance Sevices		83,894	37.0%		100,793	39.4%		140,633	37.8%	+39,840
					39.5%
		Operating Income		10,195	4.5%		522	0.2%		51,276	13.8%	+50,754
					+9,723.0%
		Ordinary Income		10,404	4.6%		-2,720	-1.1%		48,438	13.0%	+51,158
					-
	Net Income Attributable to		6,410	2.8%		-9,538	-3.7%		29,674	8.0%	+39,212
		Owners of Parent				-
※		EBITDA			27,505	12.1%		18,988	7.4%		72,217	19.4%	+53,229
					280.3%
	Exchange rate		US$		112			135					145
		Euro		131			141					157

*EBITDA = Operating income (Loss) + Depreciation & Amortization + Goodwill amortization

Performance Overview

Performance Details

2026 Medium-Term management Plan

Financial Forecast

References

3

Factors of Operating Income Change

● Sales - Increased

・ On recovery from production/shipping delays caused by parts procurement problems

・ Machine replacement and system modifications associated with the new Japanese banknote issuance proceeding ahead of schedule

● Cost of Sales ratio - Decreased

・ Improved product mix and price pass-through

・ Easing of high parts pricesIncreased

Sales

Decreased	Increased
Cost of Sales	SG&A	(Millions of Yen)
ratio	expenses

-20,604 Operating

+29,777margin

13.8%

• SG&A expenses - Increased
• Depreciation of the yen causing higher costs at overseas affiliates
• Logistics costs associated with
  the new Japanese banknote issuance
• FX impact - Increased

+1 billion yen

+41,582

Operating

margin

0.2%

522

FY2022

51,276 +50,754

FY2023

(Sales, Cost of Sales ratio, and SG&A)

Performance Overview

Performance Details

2026 Medium-Term management Plan

Financial Forecast

References

4

Sales & Operating Income by Business Segment

		Sales			Operating Income
(Millions of yen)	FY2021	FY2022	FY2023	Y-on-Y	FY2021	FY2022	FY2023	Y-on-Y
	Full year	Full year	Full year	Full year	Full year	Full year
Overseas	127,803	155,902	185,239	+29,337	4,781	436	6,645	+6,209
Market	+18.8 %	+1,424.1 %
Financial	36,079	36,248	78,422	+42,174	4,644	152	24,179	+24,027
Market	+116.3 %	+15,807.2 %
Retail &	47,859	45,595	74,774	+29,179	2,543	-571	10,593	+11,164
Transportation	+64.0 %	- %
Market
Amusement	12,131	15,139	28,201	+13,062	-366	1,624	10,030	+8,406
Market	+86.3 %	+517.6 %
Others	2,688	2,971	5,840	+2,869	-1,408	-1,118	-173	+945
+96.6 %	- %
Total	226,562	255,857	372,478	+116,621	10,195	522	51,276	+50,754
+45.6 %	+9,723.0 %

Performance Overview

Performance Details

2026 Medium-Term management Plan

Financial Forecast

References

5

2

FY2023 Performance Details

Overseas Market

												Overview	*1 TCR: Teller cash recycler (RBG, GLR)
(Millions of yen)		FY2021			FY2022		FY2023		Y-on-Y			*	2	CI-series: Cash management solution (CI/CI-X series)
	Full year			Full year		Full year
								Sales				CI-X series can handle more than 60 currencies
					155,902		185,239	+29,337	 Financial Institutions
Sales	127,803						+18.8 %		Increased for TCR*1 in the U.S.
											 Retail Industry
												Increased for CI-series*2 for major retailers in the U.S. and EMEA
Ratio to total		56.4%			60.9%		49.7%		-11.2pt		Increased for Acrelec products
					Operating Income
net sales
											Increased by the easing of high parts prices
Operating		4,781					6,645		+6,209		Products & Services
income				436				+1424.1 %		Solutions for Automation & Operational Efficiency
										•	Self-service solutions			•	Cash management solutions
Operating
	3.7	%		0.3	%	3.6	%	+3.3 pt	•	Electronic payment solutions		•	Solutions with biometric/image-
margin
												recognition technologies	etc.
						Sales	Operating income
80, 000						4,600	8,000
									7,000	Products						Services
2,197									6,000
			1,920
			947			1,510		5,000
			240	295		4,000
60, 000		-732			3,000
-1,699						2,000
							58,622	1,000
								0
									-1, 00 0
								46,630		-2, 00 0
40, 000					45,663				-3, 00 0
							-4, 00 0
42,032				40,728		41,013
			38,974		-5, 00 0
33,519	35,992				-6, 00 0						Digital services	Shared services
							-7, 00 0
							-8, 00 0
20, 000										-9, 00 0
										-10,0 00
										-11,0 00
										-12,0 00
										-13,0 00	Outline of the Segment
										-14,0 00
0										-15,0 00
4Q	1Q	2Q		3Q	4Q	1Q	2Q	3Q	4Q
FY2021			FY2022			FY2023			Sales and maintenance services to overseas financial institutions, Cash-in-Transit
											companies (CITs), retail stores etc.
Performance Overview			Performance Details	2026 Medium-Term management Plan	Financial Forecast	References		7

Sales by Geographical Segment

(Millions of yen)		Full year		Y-on-Y
FY2021	FY2022	FY2023		Local
	+20,083
Americas	44,684	69,336	89,419	+20.8%
+29.0	%
Acrelec	2,716	3,050	4,932	+1,882	+51.5%
+61.7	%
Revolution	3,774	17,758	17,994	+236	-5.1%
+1.3	%
EMEA	68,967	70,758	79,489	+8,731	+5.2%
+12.3	%
Acrelec	16,479	18,663	23,369	+4,706	+17.3%
+25.2	%
Asia	14,151	15,806	16,330	+524	-3.2%
+3.3	%
Acrelec	614	751	1,615	+864	+101.4%
+115.0	%
Total overseas
127,803	155,902	185,239	+29,337	+11.3%
sales	+18.8	%
Acrelec	19,809	22,464	29,916	+7,452	+24.7%
+33.2	%
Revolution	3,774	17,758	17,994	+236	-5.1%
+1.3	%

• Revolution P&L included in the scope of consolidation (the Americas) since Q3 FY2021.
• Sales of OEM included in regional sales since FY2022. (FY2020 and FY2021 also adjusted)
• China included in Asia since FY2022.

Americas

• Financial institutions - Increased (TCRs)
• Retail industry - Increased (CI-series)
• Acrelec - Increased
• Revolution - Same as previous year

EMEA

• Financial institutions - Decreased (TCRs)
• Retail industry - Increased (CI-series)
• Acrelec - Increased

Asia

• Financial institutions
• • Increased (Banknote sorters)
• Retail industry - Increased (CI-series)
• Acrelec - Increased

Performance Overview

Performance Details

2026 Medium-Term management Plan

Financial Forecast

References

8

Acrelec and Revolution

(Millions of yen)	FY2021	FY2022	FY2023	Y-on-Y
Full year	Full year	Full year

	Sales									29,916			+7,452
					22,464
		19,809
	Americas	2,716	14%	3,050	14%	4,932	16%	+1,882
		EMEA	16,479	83%	18,663	83%	23,369	78%	+4,706
			Asia	614	3%	751	3%	1,615	5%	+864
Operating		Before goodwill	582			-1,326			1,093			+2,419
	amortization
income		After goodwill	-177			-2,122			307			+2,429
			amortization

(Millions of yen)	FY2021	FY2022	FY2023	Y-on-Y
Full year	Full year	Full year

Sales			17,758				17,994	+236
		3,774
Ratio	8 %	26 %			20 %	-6 pt
(Revolution
/Americas)
Operating	Before goodwill	252	-692			-2,706	-2,014
amortization
income	After goodwill	-143	-1,220			-4,046	-2,826
	amortization

Americas	Sales increased by large-size business deal
	with F&B companies
EMEA	Sales increased to:
	- Leading F&B companies in U.K.
	- Gas stations in Germany
Asia	 Sales increased in the Philippines, Taiwan and Thailand
	 Sales increased in Japan
	*Full-year results for reference only.
Synergy	Revolution's P&L has been included in
the scope of consolidation since Q3 FY2021.

• Glory's coin and banknote recyclers for back-office to replace the current machines in use
• Maintenance centers and production bases of Glory and Revolution to be integrated for improved productivity

The merger of the Revolution Group by absorption by Glory Global Solutions Inc. was completed on April 1, 2024.

-To increase the efficiency of business operations through the integration of its U.S. consolidated subsidiary.

Performance Overview

Performance Details

2026 Medium-Term management Plan

Financial Forecast

References

9

Financial Market

(Millions of yen)		FY2021		FY2022		FY2023		Y-on-Y
	Full year		Full year		Full year
	Sales						78,422	+42,174
								+116.3 %
			36,079		36,248
Ratio to total		15.9%		14.2%		21.1%		+6.9 pt
net sales
Operating						24,179	+24,027
	4,644				+15807.2 %
	income			152
Operating		17.9	%	0.4	%	30.8	%	+30.4 pt
	margin
					Sales	Operating income	10,680	15000
30, 000							7,098
								5,158
	18	1,210		417	950	1,243		25,564	5000
20, 000	-2,425		22,802
						20,569
					12,512				-5000
10, 000
	10,243		8,899		9,487
		8,374
		6,463
0									-15000
	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
	FY2021		FY2022			FY2023

Overview

Sales

• Open teller system: +179.7% year-on- year
• Coin and banknote recyclers for tellers: +161.0% year-on- year
• Increased for maintenance services associated with system modifications

for the new banknote issuance

Operating Income

• Increased significantly owing to higher sales of main products and maintenance services

Products & Services

Solutions for Automation & Operational Efficiency

	•	Self-service solutions	•	Cash management solutions
	•	Electronic payment solutions	•	Solutions with biometric/image-
		recognition technologies	etc.
	Products					Services
			B-LINK
					Product management	Monitoring services
					systems

Outline of the Segment

Sales and maintenance services to financial institutions in Japan.

Performance Overview

Performance Details

2026 Medium-Term management Plan

Financial Forecast

References

10