Message from the President

Importance of transformation

Although our history spans over 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 2026 Medium-Term Management Plan

We launched our 2026 Medium-Term Management Plan in April 2024. 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.”
The first is to transform our material KPIs. While we have concentrated on business growth in the past, we will now shift our management focus to profit, with a strong awareness of the cost of capital. Second, we will position the F&B market as a new pillar of our business to complement the retail and financial markets. In this sector, we will develop new solutions that integrate our cash handling machines with Acrelec's kiosks and Showcase Gig$#39;s mobile ordering systems. We see significant business opportunities in the F&B market due to global labor shortages, high demand for self-service ordering and payment solutions, and the large number of restaurants. The third focal area is to expand our business model. Here, we will incorporate DX into our existing business model centered on cash handling machines. By leveraging our core business, we will create new services that utilize digital technology.
The Glory Group aims to become a leading company under its Long-Term Vision 2028, with the slogan “We enable a confident world.” The 2026 Medium-Term Management Plan clarifies the objective of our vision, which is to drive customers' DX with best-in-class products and software platforms combined. Specifically, we will accumulate and analyze data acquired from our products, as well as from those of other market players, onto our software platform. This will enable us to make tailored proposals that enhance business efficiency and improve sales for each customer.

Promoting our DX business

In January 2024, the Group acquired Flooid Topco Limited (“Flooid”), which is based in the United Kingdom. Flooid provides a cloud-native, unified commerce software platform that can accommodate various purchasing channels, including traditional checkout, self- checkout, self-scan and pay, and online sales, at retail stores. The platform is hardware agnostic and capable of connecting to devices from nearly every manufacturer in operation at the store. By leveraging these strengths, we look forward to developing a new software business.
The Glory Group has many software engineers with expertise in a variety of areas. In the future, we will further strengthen technical collaboration among companies that have joined the Group through M&As and other means and leverage such collaboration as a core strength. In June 2024, we held a global software meeting, bringing together top IT executives from 17 sites around the world, including representatives from Flooid and Acrelec, to share technology and exchange ideas. The meeting enabled us to share our mutual strengths and our aspirations for the Group as a whole, which will enhance our ability to develop and provide solutions with a sense of speed.
On the other hand, we still face a shortage of system sales engineers who interact with customers and propose comprehensive solutions. Until now, we have focused mainly on segment-specific proposal activities and hardware product offerings. However, we need to develop solutions for business formats with multiple components, such as mixed-use commercial facilities. Therefore, we must attract people who can make comprehensive proposals and integrate both hardware and software solutions. We aim to support our customers' digital transformation by providing comprehensive solutions tailored to their specific industries, environments, and store formats. To find the required personnel, we included a DX strategy in our 2026 Medium-Term Management Plan that prioritizes the expansion of our DX specialists.

Enhancing Corporate Value

With respect to our stock price, we take seriously the fact that our price-to-book value ratio (PBR) has remained below 1.0x, reflecting a harsh evaluation by the market. We believe this shows that Glory has not shed its image as solely a cash handling machine maker.
Accordingly, we are committed to transitioning from a mere hardware manufacturer offering cash automation products to a solutions provider that drives customers' DX.
Through strategic investments, we will also work to monetize our new business domain. With this in mind, we will strive to restore our earning power and achieve business growth, enabling us to present the results to shareholders and other investors as soon as possible and share them with our employees.
In addition to improving ROE, ROIC, and ROA by restoring profitability, we will focus on investing in growth and enhancing shareholder returns in a balanced manner. With respect to shareholder returns, our policy is to strengthen these through stable and continuous dividend increases, making progressive dividends (with fiscal 2023 as the benchmark for annual dividends) and targeting a dividends-on-equity (DOE) ratio of 3% or more.
In addition, we will focus on ongoing dialogue with investors to deepen their understanding of our business strategies.

My promise to you

Now that we have completed our response to the issuance of new banknotes, the real test of our business is about to begin. To earn the confidence of stakeholders and elevate Glory to the next stage, I will take the lead in transforming the company and guiding it towards a bright future. This makes me feel empowered.
Looking ahead, I will work to restore Glory's earning power and achieve business growth. Together with our 11,000 employees worldwide, I will continue providing solutions that exceed customer expectations. I promise to successfully implement the 2026 Medium-Term Management Plan and achieve the goals we have set for ourselves, and I look forward to your continued support.

Akihiro Harada
President