Glory Ltd. TSE:6457
Glory : FY2024 3rd Quarter Material for Investor Conference *The collection as of the February 6, 2025 has been applied.
Source: MarketScreener
GLORY LTD.
Consolidated Financial Results
for the Nine Months Ended December 31, 2024
Agenda
1
2
Financial results for the nine months ended December 31, 2024
Highlights
Akihiro Harada, President
Summary of Financial Results Yukiya Tanaka
Executive Officer; Executive General Manager, Management strategies Headquarters
Financial forecast for the year ending March 31, 2025
3
Financial Forecast Yukiya Tanaka
Executive Officer; Executive General Manager, Management strategies Headquarters
Financial results for the nine months ended December 31, 2024
1 | Highlights |
Akihiro Harada, President |
Financial Highlights
Consolidated financial results
for the nine months ended December 31, 2024
Sales 280 billion yen | Operating | 29.3 billion yen |
income | (35.7 billion yen before goodwill amortization) | |
vs. previous year: +20.3 billion yen | vs. previous year: -6.0 billion yen |
- Overseas market sales increased significantly (Net sales: YoY +26.6 billion yen).
- In the financial market, sales and operating income decreased due to the completion of system modifications associated with issuances of the new banknotes in Japan.
- Achieved record-high sales in the nine months period.
Consolidated financial forecast
for the year ending March 31, 2025
Sales 370 billion yen
vs. forecast | +8.0 billion yen |
vs. previous year | (2.4) billion yen |
Operating income
32.0 billion yen
(40.8 billion yen before goodwill amortization)
vs. forecast | +2.0 billion yen |
vs. previous year | (19.2) billion yen |
- Revised full-year forecasts upward from the previous announcement on November 7, 2024.
- Steady demand for self-service products in both the Japanese and overseas markets.
- Improving profitability in overseas markets.
Highlights | Summary of Financial Result | Financial Forecast | Reference |
4
Topics
Topics
⚫ Sales projections of domestic products | ⇒Topic 1 (P6) | |
⚫ Large orders in the overseas market | ⇒Topic 2 (P7) | |
⚫ Breakdown of recurring revenue | ⇒Topic 3 | (P8) |
⚫ Business growth of Acrelec | ⇒Topic 4 | (P9-10) |
⚫ Products exportation to the United States | ⇒Topic 5 | (P11) |
Highlights
Summary of Financial Result
Financial Forecast
Reference
5 |
Topic 1: Sales projections of domestic products
Projected temporary sales decline in FY2025 with strong recovery above historical average in FY2026
(billion yen)
50 | |||||||||
Sales of products | Financial market | 40 | |||||||
30 | |||||||||
20 | |||||||||
10 | Average sales: ¥25 billion | ||||||||
0 | |||||||||
FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | ||
(Forecast) | (Projection) | (Projection) |
(billion yen) | ||||||||||
market | 60 | |||||||||
50 | ||||||||||
productsofSales | transportationand | 40 | ||||||||
30 | ||||||||||
20 | ||||||||||
10 | Average sales: ¥35 billion | |||||||||
Retail | 0 | |||||||||
FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | |||
(Forecast) | (Projection) | (Projection) |
COVID-19 | New banknotes issuance |
in Japan
Parts shortage
(Semiconductors, etc.)
[Financial market]
FY2025: Temporary decline is expected
FY2026: Recovery expected to be above historical average
Key factors for recovery
- Demand for product replacement* due to aging.
- Strong demand for self-service products due to workforce shortages.
- Rising interest rates encourage banks to make capital
investments.
*The products that have only received system modification or unit replacements in response to the new banknotes issuance in Japan.
[Retail and transportation market]
FY2025: No downturn is expected, and performance is expected to be in line with the historical average
Key factors
- Active capital investment to coin and banknote recycler for cashiers and ticket vending machines due to workforce shortage.
Highlights
Summary of Financial Result
Financial Forecast
Reference
6 |
Topic 2: Large orders in the overseas market
Progress and forecasts in FY2024
*The numbers in blue have been revised from the previous announcement (November 7, 2024).
Project | Products | Project size by | Progress in FY2024 | ||||||
FY2026 | |||||||||
① | Cash management | (Units) | 1-3Q Results | Annual Forecast | |||||
Large order from a major | solution | ||||||||
5,300 units | Orders intake | 1st Half | 5,300 | 5,200 | 5,300 | ||||
CI-300BX | 1,600 | ||||||||
U.S. global retailer | |||||||||
Installed | 1,000 | 2,200 | 3,000 | 3,300 | |||||
1st Half | |||||||||
② | Teller cash recycler | (Units) | 1-3Q Results | Annual Forecast | |||||
Large order from Italian | |||||||||
GLR-200 etc. | 10,000 units | Orders intake | 2,160 | 2,160 | |||||
Post at Sitrade S.p.A. | |||||||||
Installed | 0 | 200 | 150 | ||||||
③ | (Units) | 1-3Q Results | Annual Forecast | ||||||
Large order from Mexican | Cash management | Not decided | |||||||
1st Half | 2,300 | ||||||||
solution | Orders intake | 3,000 | 3,300 | ||||||
Number of OXXO stores; | 2,000 | ||||||||
major retailer OXXO | CI-50B+CI-10CX | Installed | 1,000 | 1,600 | 1,000 | ||||
More than 20,000 | |||||||||
Highlights
Summary of Financial Result
Financial Forecast
Reference
7 |
Topic 3: Breakdown of recurring revenue
Trends in recurring revenue
(billion yen)
400 | ||
300 | 35% | 38% |
200 |
43% |
38% |
*Excluding temporary revenue by response to new banknote and ¥500 coin issuance in Japan.
46% | |
34% | 38% |
Recurring revenue and its ratio are increasing, and contributing to stable financial results
50% | |
45% | |
40% | |
35% | Overseas |
30% | 95 |
25% | |
20% | 68% |
Domestic
44
FY2024 32%
140.4
100 | 97 | ||
82 | 85 | 83 | |
0 |
117 | 127 | 140 |
15% |
10% |
5% |
0% |
Billion Yen
Overseas
FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | |||||||||
Reccuring Revenue | Products Revenue | Reccuring Revenue Ratio | ||||||||||||
Sales category | FY2024(Forecast) | Future outlook | ||||||||||||
Billion yen | ||||||||||||||
① | Maintenance Sales | 78.6 | Expanding with increasing product sales | |||||||||||
② | UBIQULAR | 0.3 | Increasing demand for remote monitoring | |||||||||||
③ | Acrelec | 9.5 | Strengthening digital transformation in the | |||||||||||
food & beverage industry | ||||||||||||||
④ | Flooid | 6.2 | Growth of the UCP market | |||||||||||
⑤ others | 0.9 | Continuing demand for rentals, etc. | ||||||||||||
Total | 95.5 | |||||||||||||
(Recurring revenue ratio) | 45% | |||||||||||||
- Overseas maintenance services, spot maintenance services, etc. (Including group companies except Acrelec)
- Digital services to support remote monitoring of cash handling machines and in-store digital transformation
- Maintenance fees and service fees
- UCP (Unified Commerce Platform) usage fees
FY2024
(Forecast)
Domestic | Sales category | FY2024(Forecast) | beverage industry | |
Billion yen | Future outlook | |||
① | Expansion due to increased sales of | |||
Maintenance Sales | 33.3 | products for retail industry and food & | ||
② | DMP | 0.3 | Increase in DX solution sales | |
③ | Significant subsidiaries | 6.7 | Increase in SaaS revenue | |
Business | ||||
④ others | 4.6 | Continuing demand for rentals, etc. | ||
Total | 44.9 | |||
(Recurring revenue ratio) | 28% | |||
- Domestic maintenance services, spot maintenance services, etc. (including group
companies)
- DX solution services such as "BUYZO"
-
System usage fees sold by domestic significant subsidiaries, etc.
④ Other services such as "Rakuda" and "Repo Kore!"
Highlights
Summary of Financial Result
Financial Forecast
Reference
8 |
Topic 4: Business growth of Acrelec
1. Self-service kiosks market trends and installed base
Demand forecast for self-service kiosks markets (unit : thousand units)
*Forecast by RBR Data Services, a global market research report issuance
Demand is expected to keep growing in | |
The installed base of kiosks | the future due to the global workforce |
from global manufacturers in the market | shortages and soaring labor costs |
(Units)
100,000
80,000
60,000
40,000
20,000
0
2019 | 2023 | 2028 |
B Acrelec C D E
Self-service kiosks sales continue to grow
Highlights | Summary of Financial Result | Financial Forecast | Reference |
9 |
Topic 4: Business growth of Acrelec
2. FY2024 Sales (forecast) breakdown
Total support for store operations through a variety of DX solutions
- Self-servicekiosk
Other solutions/ Software etc. ¥6.8 billion(20%)
Maintenance services, spot maintenance services, installation fee ¥9.5 billion(30%)
Kiosks/Drive thru ¥16.2 billion(50%)
FY2024
Sales (Forecast)
¥32.5
billion
The top 4 customers account for
12.2 billion yen (75%).
Touchscreen order terminals that streamline the workflow from ordering to payment, enabling labor-saving in stores
- Drive-thrusystem
Reducing customer waiting time
by using the dashboard that store staff could identify bottlenecks at a glance
- "Red Biscuit"
One-stop software platform to handle payment terminals, kitchens, drive-thru, etc.
Sales of main products to top 4 customers (total number of stores: 99,000)
(Billion yen) | Self-service kiosk | Drive-thru | |||
15 | |||||
10 | 27 | ||
10 | |||
5 | 5 | 62 | 95 |
34 | |||
0 | |||
FY2022 | FY2023 | (Forecast) | |
- "Double Check"
Automatic weight check system of To-Go and delivery items before delivery to prevent packing mistakes
- Table Locator
To identify the table to serve by using
Bluetooth and support store staff's
operation
Highlights | Summary of Financial Result | Financial Forecast | Reference |
10 |