GLORY : Integrated Report 2024

Editorial Policy

In April 2024, we launched our 2026 Medium-Term Management Plan, which represents the third step toward realizing our Long-Term Vision 2028. In the plan, we described various ambitious management goals and business strategies aimed at restoring our earning power and achieving robust business growth.

The key point we want readers to focus on in this plan is that it specifically embodies the “new levels of confidence” set forth in the Long-Term Vision 2028. It also clearly articulates our vision by expressing our ultimate aim, which is “to drive customers’ digital transformation (DX) by offering best-in-class products and software platforms combined.” This is because, when we asked institutional investors and analysts who read last year’s report for their feedback, they expressed a desire for us to show “Glory’s path forward,” especially in the face of changing business conditions.

We produced this year’s report with the intention of presenting readers the “path forward” for the Group and explaining how we plan to achieve it. We paid particular attention to the following points.

First, to convey our vision, we have illustrated the concept of “new levels of confidence” and the process of creating them. We hope that this section will give you a clear overview of our “path forward.”

The second is a message from Akihiro Harada, who assumed the position of President in April 2024. When interviewed outside the Company at the time of his inauguration, he described himself as “a person who follows through on what he thinks with enthusiasm.” We are confident that you will find in Mr. Harada’s message the same enthusiasm.

Third, we have carefully broken down and explained our value creation process. We also clearly illustrated our business model, showing how we combine the Group’s strengths with megatrends to generate positive outcomes. In addition, we expanded the Technology Foundation section, presenting in a chronological manner how we apply our core technologies to create new products and services.

The Management Foundation Strategy section of the new medium-term management plan includes our DX strategy, human resources strategy, initiatives to address climate change, and responses to business risks. This shows that our sustainability initiatives, which had previously been considered separately from our business strategy, have now been reorganized as a necessary foundation for executing that strategy. We felt that integrated thinking was truly starting to take root within the Company, marking a significant change.

Finally, we would like to express our sincere gratitude to all of our stakeholders, including institutional investors and analysts, for their candid feedback. We are confident that this report will help us to further deepen the dialogue with our stakeholders for the future growth of the Group. We would be grateful if customers, business partners, shareholders, employees, and local community member could also provide us with their candid opinions about this report.

Integrated Report 2024 Project Team

C O N T E N T S

About the Integrated Report

Disclaimer Regarding Forward-Looking Statements

This report contains forward-looking statements that are based on management’s judgment at the time the report was prepared and includes risks and uncertainties. As a result, actual results might differ materially from forward-looking statements due to a variety of factors.

Fiscal 2023, from April 1, 2023, to March 31, 2024

(including certain details of business and other activities occurring in or after April 2024)

GLORY LTD. (the “Company”) and its subsidiaries (the “Group”)

About the Cover

The graphic on the cover is a mixture of images that seamlessly connect various elements̶such as “products and services,” “core business and new business domain,” “domestic and international markets,” and “Glory and its partners”̶to convey a new story for the Glory Group.

Corporate Philosophy

Strategies for New Value Creation

Sustainability

Corporate Governance

Data Section

Corporate Philosophy

Company purpose and raison d’être

Our Values

Values shared by the GLORY Group

Building a more secure world through global collaboration and commitment to excellence.

Our corporate philosophy is based on the idea that “we will strive to meet the needs of customers and society with an unyielding spirit and make the impossible possible.”

It also represents GLORY’s origin, which will never change through the ages, that the great things can only be achieved when the power of everyone who shares the same striving spirit comes together.

Keeping the origin in mind, Glory will build a more secure world through global collaboration and commitment to excellence.

Customer Delight

We put our customers first.

Integrity

We do the right thing, always.

Innovation

We embrace new challenges and shape the future.

Speed

We move fast, that’s how we stay ahead.

Diversity & Respect

We value the strength in our differences.

Teamwork

Expected Behaviors based on Our Values

Exceed the expectations of all our stakeholders and build trust.

Rise to new challenges, with passion and speed.

Improve our skills and

work with mutual respect.

Revision of Corporate Philosophy Structure

Corporate Governance

Data Section

INTEGRATED REPORT 2024 04

Starting with the 2026 Medium-Term Management Plan, we have revised our Corporate Philosophy Structure.

With the spread of cashless payment systems and the consolidation of financial institutions’ outlets worldwide, the business environment surrounding the Group is changing dramatically. In addition, the backgrounds of the Group’s employees are becoming more diverse due to an increase in Group companies through proactive M&A activities, as well as an increase in mid-career hires.

To continue growing under these

circumstances, it is necessary that all executives and employees reaffirm the idea of our Corporate Philosophy, which is the origin of Glory. Based on the belief that we need to flexibly change our awareness and actions in response to the changing times and conditions, we have reviewed our Corporate Philosophy Structure and newly established “Our Values.”

All executives and employees of the Group shall practice actions based on “Our Values.” In this way, the Group is committed to building a more secure world, as stated in our Corporate Philosophy.

Background of Revision

Major changes in the business environment

Spread of cashless transactions

Worldwide consolidations/

closures of financial institutions’ outlets

Diversification within the Group

Increase in number of Group companies/employees

In October 2006, we merged with GLORY SHOJI CO., LTD., which was a consolidated subsidiary.

Increase in mid-career hiring

Glory’s Business

Value Creation at Glory

Strategies for New Value Creation

• Net Sales
  by Business Segment

（FY2023）

The Group is active in the overseas, financial, retail and transportation, and amusement markets while also handling other products and services that fall outside of these four reportable segments. With this as our base, we are building a business model based on recognition/identification, mechatronics, and data analytics technologies. We will work diligently to increase customer value and profitability by developing a comprehensive strategy for each market. By providing optimal products and solutions, our objective is to meet ever-changing customer needs as well as social and environmental trends.

Financial

Market

21.1%

Ratio to

Retail and Total Net Sales

Transportation

Market

20.1%

Amusement

Market

7.6%

Overseas

Market

49.7%

Others 1.5%

Characteristics (Market Share, Features, Competition)

Overseas Market

Overseas financial institutions, retailers, restaurants, cash-in-transit companies, etc.

• Banknote recyclers for tellers
• Banknote sorters
• Coin and banknote recyclers for cashiers
• Coin and banknote recyclers for back offices
• Self-servicekiosks
• Global digital services
• Unified commerce platform＊1
• Financial shared service

Following the acquisition of Talaris Topco Limited (then the world’s largest manufacturer of cash handling machines) in 2012, the scale of net sales grew to approximately ¥100 billion, more

than three times the amount before the acquisition. After eight years of stagnant business growth, net sales grew driven by the renewal of core products and the shift to self-service solutions, as well as mergers and acquisitions. As a result, the overseas sales ratio exceeded 50% for the first time in fiscal 2022*2 and has remained at a high level ever since. However, profits have been on a downward trend in recent years, and the recovery of earning power has become an urgent issue.

Performance Trends and Main Factors P.7 Overseas Business P.26

We sell banknote recyclers for tellers to financial institutions and coin and banknote recyclers for back offices and coin and banknote recyclers for cashiers to retailers in more than 100 countries in Europe, the Americas, and Asia. Through our high-quality products and services and our well-developed direct sales and maintenance network, we have built a strong market position.

The Glory Group’s products for retail stores are unique in that they can accept coins from up to 60 countries, and are expected to be increasingly adopted by global retailers and restaurants that operate in multiple countries. The Group is also focusing on the recurring business through software sales, such as the Unified Commerce Platform (UCP), which addresses the

diversification of sales channels in retail stores, and Global Digital Services, which provides remote monitoring and management of Glory devices.

In addition to Glory, companies that

Introduction

Message from the President

Value Creation at Glory

Strategies for New Value Creation

Sustainability

Corporate Governance

Data Section

Performance trends

Despite the recent gradual decline in

Characteristics (Market Share, Features, Competition)

institutions,

OEM companies, etc.

Financial Market

• Coin and banknote recyclers for tellers
• Banknote changers
• Security storage systems
• Key management systems

the number of branches of financial institutions in Japan, the Bank of Japan’s lifting of its negative interest rate policy in 2024 and other factors have increased the appetite for capital investment among financial institutions. Therefore, net sales in this market are expected to remain at current levels.

Performance Trends and Main Factors P.7 Domestic Business P.31

and Oki Electric Industry Co., Ltd.

Market

Supermarkets, department stores, specialty stores,

Net sales in this market are growing as the demand for automation and self-service solutions continues against

No. 1 domestic market share

(coin and banknote recyclers for cashiers, sales proceeds deposit machines, coin-operated lockers) Source: Glory’s research

Retail and Transportation

restaurants, cash-in-transit companies, public transport companies, hospitals,

local governments, and others in Japan

a backdrop of soaring labor costs and workforce shortages. In fiscal 2020, sales in this market exceeded those in the financial market. Now that the COVID-19 pandemic has abated, supermarkets and restaurants are becoming more willing to make capital investments and are expected to further increase their uptake of these products in the future.

Performance Trends and Main Factors P.7 Domestic Business P.31

We provide products and services that improve the efficiency of payment processes and administrative work at retailers and other companies. Sales opportunities include the replacement of aging coin and banknote recyclers for cashiers, as well as new installations to accommodate the shift to self-service machines and to expand our installation coverage. We also anticipate increased adoption of data utilization services, facial recognition systems, and other solutions that help retailers improve profitability and security.

In addition to Glory, providers of coin and banknote recyclers for cashiers include Fuji Electric Co., Ltd., and Toshiba Tec Corporation.

Amusement Market

Domestic amusement facilities

(e.g., pachinko halls)

• Card units for pachinko parlors
• Card systems for pachinko parlors
• Banknote conveyor systems
• Pachinko prize dispensing machines
• Pachinko ball counters for individual pachinko machines
• Membership management systems for pachinko parlors
• Pachinko ball/token counters

Since 2022, halls have been replacing their machines with smart machines that allow users to play without touching their payouts or tokens, and we anticipate continued sales opportunities for card systems for smart machines over the next five years or so.

Performance Trends and Main Factors P.7 Domestic Business P.31

In this segment, our main products are not the game machines themselves but rather the card systems that are installed inside the machines to manage deposits and the counting of balls. We supply to approximately 20% of all amusement centers in Japan. Companies that handle peripherals for amusement arcades include Nippon Game Card Corporation and Mars Engineering Corporation.

Introduction

Message from the President

Value Creation at Glory

Strategies for New Value Creation

Sustainability

Corporate Governance

Data Section

Net Sales

• Others
• Amusement market
• Retail and transportation market
• Financial market
• Overseas market

Operating Income

• Others
• Amusement market
• Retail and transportation market
• Financial market
• Overseas market

Operating margin

2022/3

2023/3

2024/3

COVID-19 pandemic (negative impact) Issuance of new ¥500 coins (positive impact)

Shortage of semiconductors and other components (negative impact)

Introduction of smart machines (positive impact)

Issuance of new banknotes in Japan (positive impact)

Events occurring in the Group’s businesses

• Acquisition of Flooid
• Increase in sales due to response to new banknotes

＊1 In fiscal 2015, we changed the reporting method for income and expenses of overseas subsidiaries from the “year-end exchange rate” to the “average exchange rate.” Figures for fiscal 2014 have been applied retrospectively to reflect the change.

＊2 In fiscal 2016, following a review of our business segments, we reclassified part of our business (previously included in “Other”) into the “Financial market” and “Retail and transportation market” segments. Figures for fiscal 2015 have been applied retrospectively to reflect the change.

＊3 In fiscal 2021, following a review of our business segments, we reclassified our biometric and image recognition business and a part of our business related to electronic payments (both previously included in “Other”) into the “Retail and transportation market” segment and reclassified part of our new business to the overseas market. Figures for fiscal 2020 have been applied retrospectively to reflect the change.

＊4 From fiscal 2021, OEM sales are included in sales in the Americas, Europe, and Asia.

＊5 Results for fiscal 2021 are shown after retrospective application of finalized provisional accounting treatment related to business consolidation.

Introduction

Message from the President

Value Creation at Glory

Strategies for New Value Creation

Sustainability

Corporate Governance

Data Section

Confidence enabled

Through our products, we have helped improve operational efficiency and ensure rigorous cash management of our customers.

Leverage data

Offer solutions best suited to customer needs

Analyze data

Data Platform

Accumulate data

Acquire data from market assets with our strong customer base

New level of confidence enabled

We will create solutions that utilize platforms to help our customers increase sales at their stores.

Add new solutions that help improve the operational efficiency of financial institutions to our monitoring service that enable preventive maintenance

Collect data through Glory’s products and services

Efficient payment processing

Glory’s value delivered

Increased customer revenue

Message from the President

Strategies for New Value Creation

Sustainability

Corporate Governance

Data Section

Transformation to deliver increase in corporate value

Glory in a Stage of Transformation

To address changing global business conditions, including the shift to a less cash society, we will not rest on our 100+ years of history and past successes. We will drive a transformation from a new perspective with the aim of enhancing corporate value and achieving sustainable growth.

My Mission as the New President

This is my first integrated report as President. I would like to take this opportunity to greet our stakeholders and share my thoughts.

I took over as President following the issuance of new Japanese banknotes for the first time in 20 years, which was a major event, and my mission is to enhance corporate value and achieve sustainable growth. To do this, we must actively pursue new business growth while striving to restore profit margins. For the Glory Group, which deals primarily with cash handling and payment-related products and services, recent changes in the business environment, including the

Pre sid e nt

shift toward a cashless economy, have been headwinds. Given

that the volume of cash in circulation is expected to steadily decline over the very long term, it is essential to consistently implement the business strategies outlined in the 2026 Medium-Term Management Plan to achieve sustainable corporate growth. In addition, we will keep top of mind, and focus on, the realization of early monetization and establishment of new business domains through the M&As and capital and business alliances that we have implemented to date.

Message from the President

Data Section

In the previous medium-term management plan, we set a net sales target of ¥300 billion and an operating income target of ¥30 billion.

With respect to our core business,

We believe these successes are largely due to the market recognizing the benefits of our solutions, which help customers optimize operational costs, speed up processes, improve security, and reduce employee workloads.

In the new business domain, we have been developing new businesses centered on digital transformation (DX) in response to the trend toward a cashless economy. In the overseas financial and retail markets, we rolled out our UBIQULAR™ global digital service, which connects machines around the world via the Internet to provide data useful to customers’ businesses. In the food and beverage (F&B) market, a new business domain, we expanded our kiosk-related business centered on Acrelec Group S.A.S. (“Acrelec”), which

we acquired in 2020. In addition, we promoted our alliance with Showcase Gig Inc. (“Showcase Gig”), a mobile ordering service provider. Through these activities, we made great strides toward the next stage of our business expansion.

Although our history spans more than 100 years, we believe it is crucial to take strategic steps to address changes in the environment and achieve sustainable growth in the future.

Over the years, the Glory Group has built strong relationships of confidence with customers in Japan and overseas by providing cash handling machines that help automate the management of cash, improving operations in the financial, retail, and amusement markets. However, the market environment is evolving, and customers’ preferences and the solutions they seek are becoming increasingly diverse. While a completely cashless society is unlikely, there is

no doubt that the movement toward such a society is accelerating globally. Therefore, we cannot continue to win the satisfaction and confidence of customers solely by providing solutions centered on hardware products, such as cash handling machines. For the Group to enhance its corporate value and achieve sustainable growth, it must transform now.

Start of the 2026 Medium-Term Management Plan

As the third step toward realizing the Long-Term Vision 2028, this plan is positioned as an important period for harvesting the fruits of the seeds we have sown and nurtured. We have identified three key focal areas in the plan, with the concept of “Glory Transformation 2026.”

Review of 2023

Medium-Term

Management Plan

P.23

Domestic Business

P.31

Overseas Business

P.26

2026 Medium-Term

Management Plan

P.24