Glory : IR Day2024 Presentation Material

IR Day 2024

2026 Medium-Term

Management Plan

Investor Conference

May 30, 2024

GLORY LTD.

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Speaker & Agenda

President	Executive Officer	Executive Officer	Executive Officer
Akihiro Harada	Yukiya Tanaka	Toshimitsu Yoshinari	Yoshihiro Takada

1. Opening
2. 2026 Medium-Term Management Plan Overall Strategies
   Management Strategies Overseas Strategies Domestic Strategies

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1. GLORY IR Day 2024

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Today's Topics

Launch of 2026 Medium-Term Management Plan

Business Strategies for
"Regain Earning Power"	Roadmap and Confidence in
and	achieving the Plan

"Achieve Business Growth"

（Speaker）	（Speaker）
President	Akihiro Harada	Executive Officer	Toshimitsu Yoshinari
Executive Officer	Yukiya Tanaka	Executive Officer	Yoshihiro Takada

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2. 2026 Medium-Term Management Plan

Overall Strategies

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Where we are in the Long-Term Vision

Corporate philosophy

500+ billion-yen revenue

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

Long-Term Vision

	2026	We enable a confident world
	Harvest
	GLORY
2023	TRANSFORMATION
2026
Growth

2020

Seed

Core and New

Businesses powering

growth together

Preparation for realizing

Long-Term Vision

Pioneer in
cash-handling	Contributed to secure cash	Drive customers' Digital Transformation (DX) with
equipment
	management and efficient	best-in-class products and software platforms* combined
	store operations	*Software platforms described as "platforms" hereafter

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Financial Target

FY2026 Target

			Before Goodwill	After Goodwill
Efficiency		Amortization	Amortization
ROE	10％or more	6％or more上
Business	ROIC	8％or more	5％or more上
ROA	5％or more上	3％or more上
		Operating	38 Billion Yen	30 Billion Yen
		Profit
		or more	or more
SalesNet	Net Sales	60 Billion Yen
		Net Sales	340 Billion Yen
		(Overall)
			or more
		(New Business Domain)	or more

FX rate applied: 1 USD＝140 JPY, 1 EUR＝150 JPY

													Operating
(Billion Yen)										profit
															2026 MTP
70					Overseas
60											59		Regain Earning
50					Domestic							51			Power
40					Before goodwill amortisation							38
30			24																30
				22
						19
20			21	18				15
			14
											10
10											7
0													1
	FY2018	2019	2020			2021	2022	2023		2024	2025	2026
													Net sales
(Billion Yen)													2026 MTP
400													373			340
300						Overseas			Domestic
				236	222						231
					206			203
200

100

0

FY2018 2019 2020 2021 2022 2023 2024 2025 2026

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Increasing PBR

Achieve PBR 1.0 or more

Improve ROE, ROIC, and ROA

1. Accelerate business growth		2. Optimize capital structure		3. Improve operating profit
		ratio & cash generation
(p.20-38)		(p.42)
		(p.20-38,40,41)
✓ Develop new revenue streams	✓ Improve capital efficiency		✓ Increase productivity through
✓ Increase revenue and profit in	✓ Optimize equity ratio		DX and with generative AI
core business			✓ Improve cash generation

• 4. Optimize the balance of growth investment and shareholder returns (p.42)

  • Continue investment for further growth
  • Implement progressive dividend while keeping DOE 3.0% or more
  • Achieve optimum shareholder returns
• Implement initiatives and enhance disclosure of non-financial information
• Continue dialogue with investors to promote the Group's business strategies

			Dividend per share (Yen)			2026 MTP
120
							100th year			106
						commemorative						Progressive
							dividend
90												Dividend
		82
											DOE	3.0% or	more
				20			66	66	68	68
		60		62		64
60	56
30
FY2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026

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Basic Policies

Basic Policy

Priority Initiatives		Solutions / Platforms

Business Strategies

Develop new revenue

• streams

Increase profitability of

• core business

・Monetize target businesses (Kiosks & DMP)

・Develop new solutions with products and platforms

combined

・Launch products and services that address the need for self-service solutions

・Win large business opportunities

・Reinforce the America's sales force

Coin & Banknote	Open Teller	GLR	CI-X
Recycler	System	Series	Series

Enhance business

• management

Reinforce risk

DX Strategies

HR Strategies

Capital & Financial

Strategies

Climate Initiatives

・Establish platforms for work process transformation and DX solution/service development

・Improve employee engagement and develop human capital as the source of competitive advantage

・Achieve optimum growth investment and stable shareholder returns

・Reinforce initiatives to achieve CO2 target in accordance with the SBT*

• management

・Identify priority risks and formulate measures to mitigate business impact

*Science Based Target: Global standard for CO2 emission reduction target

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Points for business transformation

Past		2026 MTP

1. Material KPIs		Revenue	Profit

2. Business Pillars

		Retail			Retail		＋		F&B
		Financial			Financial

3. Business Models	Cash Handling	Cash Handling	＋ DX* Businesses
Machines	Machines

*Digital Transformation described as "DX" hereafter

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