(TRANSLATION FOR REFERENCE ONLY)

GLORY LTD. (6457) Consolidated Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2023

This is a translation of the original Japanese text of the "Consolidated Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2023." Should there be any discrepancy between any part of this translation and the original Japanese text, the latter shall prevail.

Consolidated Financial Results

for the Third Quarter of Fiscal Year Ending March 31, 2023

Company Name:

GLORY LTD.

February 7, 2023

Stock exchange listing:

Tokyo

Code number:

6457

URL:

https://corporate.glory-global.com/

Representative:

Motozumi Miwa

President & Representative Director

Contact person:

Yukihiro Fujikawa

Senior Executive Officer; Executive General Manager, Finance Headquarters

TEL +81-79-297-3131

Scheduled filing date of Quarterly Securities Report:

February 10, 2023

Scheduled date of dividend payments:

―

Preparation of quarterly earnings supplementary explanatory material:

Yes

Holding of quarterly earnings presentation:

Yes (for analysts and institutional investors)

(Amounts less than one million yen are rounded downward.)

1. Consolidated Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2023 (from April 1, 2022 to December 31, 2022)

(1) Consolidated Operating Results (cumulative)

(The percentages show the changes from the corresponding period of the previous year.)

Net sales

Operating income

Ordinary income

Net income attributable to

owners of parent

(Millions of yen)

(%)

(Millions of yen)

(%)

(Millions of yen)

(%)

(Millions of yen)

(%)

Nine months ended

178,503

12.5

(1,621)

―

(1,490)

―

(4,689)

―

December 31, 2022

Nine months ended

158,709

8.7

8,633

16.7

8,858

22.0

6,681

123.5

December 31, 2021

(Note) Comprehensive income

Nine months ended December 31, 2022:

¥3,688 million [ (62.1) %]

Nine months ended December 31, 2021:

¥9,737 million [ 188.5 %]

Net income per share

Fully diluted net income

per share

(Yen)

(Yen)

Nine months ended

(81.41)

―

December 31, 2022

Nine months ended

110.50

―

December 31, 2021

(Note) During the second quarter of the fiscal year ending March 31, 2023, the Company finalized the provisional accounting treatment for business combinations, and the figures for the nine months ended December 31, 2021 reflect the details of the finalization of the provisional accounting treatment.

(Reference) EBITDA (Operating income + Depreciation + Amortization of goodwill)

Nine months ended December 31, 2022:

¥12,369 million [ (41.1) %]

Nine months ended December 31, 2021:

¥20,987 million [ 12.1 %]

Net income before amortization of goodwill (Net income attributable to owners of parent + Amortization of goodwill)

Nine months ended December 31, 2022:

¥385 million [

(96.3) %]

Nine months ended December 31, 2021:

¥10,377 million [

60.9 %]

1

GLORY LTD. (6457)

(TRANSLATION FOR REFERENCE ONLY)

Consolidated Financial Results

for the Third Quarter of Fiscal Year

Ending March 31, 2023

(2) Consolidated Financial Position

Total assets

Equity

Ownership equity ratio

Equity per share

(Millions of yen)

(Millions of yen)

(%)

(Yen)

As of December 31,

369,836

196,323

52.4

3,486.96

2022

As of March 31, 2022

363,269

208,607

56.5

3,395.33

(Reference) Ownership equity

As of December 31, 2022: ¥193,844 million As of March 31, 2022: ¥205,318 million

(Note) During the second quarter of the fiscal year ending March 31, 2023, the Company finalized the provisional accounting treatment for business combinations, and the figures as of March 31, 2022 reflect the details of the finalization of the provisional accounting treatment.

2. Dividends

Dividends per share

(Record date)

First quarter-end

Second quarter-end

Third quarter-end

Year-end

Annual

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

Year ended

―

34.00

―

34.00

68.00

March 31, 2022

Year ending

―

34.00

―

March 31, 2023

Year ending

March 31, 2023

34.00

68.00

(forecast)

(Note) Revisions to the latest dividend forecast:

None

3. Consolidated Financial Forecast for the Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(The percentages show the changes from the corresponding period of the previous year.)

Net income

Net income per

Net sales

Operating income

Ordinary income

attributable to owners

of parent

share

(Millions of yen)

(%)

(Millions of yen)

(%)

(Millions of yen)

(%)

(Millions of yen)

(%)

(Yen)

Full year

255,000

12.6

(500)

―

(1,000)

―

(4,500)

―

(78.12)

(Note) Revisions to the latest consolidated financial forecast:

Yes

For details on the revision to the consolidated financial forecast, please refer to the news release titled "Notice regarding Revision to

FY2022 Consolidated Financial Forecast" announced on the same day as this report (February 7, 2023).

(Reference) EBITDA

Year ending March 31, 2023:

¥18,000 million

Net income before amortization of goodwill

Year ending March 31, 2023:

¥2,300 million

2

(TRANSLATION FOR REFERENCE ONLY)

GLORY LTD. (6457) Consolidated Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2023

Notes:

  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries involving a change in the scope of consolidation): None

(2)

Application of accounting methods specific to preparation of the quarterly consolidated financial statements:

Yes

(3)

Changes in accounting policies and estimates, and restatements

(a) Changes in accounting policies associated with revisions of accounting standards, etc.:

Yes

(b) Changes in accounting policies other than (a):

Yes

(c) Changes in accounting estimates:

Yes

(d) Restatements:

None

(Note) For more information, please refer to "2. Quarterly Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to Quarterly Consolidated Financial Statements, Changes in Accounting Policies and Changes in Accounting Policy That Are Difficult to Make a Distinction from Changes in Accounting Estimates" on page 11 of the Attachment.

  1. Total number of shares issued (common shares)
    1. Total number of shares issued at the end of the period (including treasury shares)

As of December 31, 2022:

63,638,210 shares

As of March 31, 2022:

63,638,210 shares

(b) Number of treasury shares at the end of the period

As of December 31, 2022:

7,573,173 shares

As of March 31, 2022:

2,866,078 shares

  1. Average number of shares (cumulative from the beginning of the period) Nine months ended December 31, 2022: 57,605,140 shares Nine months ended December 31, 2021: 60,466,015 shares

(Note) In addition to the number of treasury shares at the end of the period, there also existed Company shares owned by the "Board Incentive Plan (BIP) Trust Account" and "Employee Stock Ownership Plan (ESOP) Trust Account." (As of December 31, 2022: 473,785 shares, As of March 31, 2022: 301,284 shares)

(Note) Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.

(Note) Explanation regarding the appropriate use of financial forecasts and other special items (Caution concerning forward-looking statements)

The forward-looking statements such as operational forecasts contained in this report are based on the information currently available to the Company and certain assumptions which the Company regards as legitimate, and are not promises regarding the achievement of forecasts. Actual performance may differ greatly from these forecasts due to various present and future factors. For the assumptions and other related matters concerning the financial forecasts, please refer to "1. Qualitative Information on the Financial Statements,

(2) Consolidated Financial Forecasts and Other Forward-looking Statements" on page 6 of the Attachment.

3

(TRANSLATION FOR REFERENCE ONLY)

Attachment

Contents

GLORY LTD. (6457) Consolidated Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2023

1. Qualitative Information on the Financial Statements

5

(1)

Operating Results

5

(2)

Consolidated Financial Forecasts and Other Forward-looking Statements

6

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto

7

(1)

Quarterly Consolidated Balance Sheet

7

(2)

Quarterly Consolidated Statements of Income and Comprehensive Income

9

Quarterly Consolidated Statement of Income

9

Quarterly Consolidated Statement of Comprehensive Income

10

(3)

Notes to Quarterly Consolidated Financial Statements

11

Notes Regarding Assumption of a Going Concern

11

Notes for Significant Change in the Amount of Shareholders' Equity

11

Application of Accounting Methods Specific to Preparation of the Quarterly Consolidated Financial Statements

11

Changes in Accounting Policies

11

Changes in Accounting Policy That Are Difficult to Make a Distinction from Changes in Accounting Estimates

11

Segment Information

12

Significant Subsequent Events

12

4

(TRANSLATION FOR REFERENCE ONLY)

1. Qualitative Information on the Financial Statements

GLORY LTD. (6457) Consolidated Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2023

(1) Operating Results

In the nine months ended December 31, 2022, the global economy saw normalization of economic activity, leading to a gradual recovery despite the continued impact of COVID-19. However, the outlook remained uncertain due to supply chain disruptions resulting from soaring material prices and energy prices, the ongoing conflict between Russia and Ukraine, and concerns over rising COVID-19 case numbers due to China's changes to its "zero-COVID" policy.

In Japan, the economy has continued its moderate recovery, but there has been a growing sense of uncertainty regarding business conditions due to rising prices, increased downside risk in overseas economies as a result of global monetary tightening, and significant fluctuations in exchange rates.

Under such circumstances, our overseas market sales increased despite production delays caused by procurement problems for semiconductors, etc. Sales to financial institutions were sluggish, however, sales to the retail industry (self-service coin and banknote recyclers for cashiers and maintenance services) were strong, supported by the ongoing need for contact-free and self-service solutions. Sales remained steady for the Acrelec Group S.A.S. and its subsidiaries engaged in self-service kiosks business, as well as for Revolution Retail Systems, LLC, with depreciation of the yen also contributing to the increase.

In the domestic market, despite the strong demand for our products and services, sales decreased in both the financial market and the retail and transportation market. This was caused by the postponement of sales of our main products due to parts shortage impacting on production and the completion of system modifications associated with required in relation to the issuance of the new 500-yen coin.

As a result, net sales in this nine-month period totaled ¥178,503 million (up 12.5% year on year). Of this, net sales of merchandise and finished goods were ¥103,503 million (up 4.7% year on year) and net sales from maintenance services were ¥74,999 million (up 25.3% year on year). In terms of profit, we were unable to absorb the loss caused by postponements of sales and higher material prices, despite our efforts, which included design modifications to allow the use of substitutes for difficult-to-obtain parts, supply chain changes, and price revisions. As a result, we recorded an operating loss of ¥1,621 million (vs. operating income of ¥8,633 million for the corresponding period of the previous year), along with an ordinary loss of ¥1,490 million (vs. ordinary income of ¥8,858 million for the corresponding period of the previous year). Net loss attributable to owners of parent of ¥4,689 million (vs. net income attributable to owners of parent of ¥6,681 million for the corresponding period of the previous year) was recorded due to extraordinary losses associated with the impairment of goodwill of Acrelec Group S.A.S.

Results of operations in each business segment are as follows.

Financial market

Sales of this segment's main products, namely open teller systems, were sluggish due to the postponement of sales caused by the impact of parts shortage on production. In addition, sales from maintenance services decreased with the completion of system modifications associated with the issuance of the new 500-yen coin.

As a result, net sales in this segment were ¥23,736 million (down 8.1% year on year). Operating loss was ¥798 million (vs. operating income of ¥4,626 million in the corresponding period of the previous year) due mainly to decreased sales and the impact of higher material prices.

Retail and transportation market

Sales of this segment's main products, namely coin and banknote recyclers for cashiers, sales proceeds deposit machines for cash-intransit companies, and self-service medical payment kiosks, were slow due to production delays caused by parts procurement difficulties. In addition, sales from maintenance services decreased with the completion of system modifications associated with the issuance of the new 500-yen coin.

As a result, net sales in this segment were ¥31,767 million (down 11.7% year on year). Operating loss was ¥595 million (vs. operating income of ¥2,723 million in the corresponding period of the previous year) due mainly to decreased sales and the impact of higher material prices.

Amusement market

Sales of card systems, one of this segment's main products, were strong thanks to the sales of units for newly introduced amusement machines, despite the impact of production problems.

As a result, net sales in this segment were ¥10,731 million (up 13.8% year on year) and operating income was ¥1,206 million (vs. operating loss of ¥114 million in the corresponding period of the previous year).

Overseas market

In the Americas, sales of this segment's main products, namely RBG-series coin and banknote recyclers for financial institutions, were slow due to the impact of parts shortage on production. However, sales of CI-series sales proceeds deposit machines for the retail industry

5

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GLORY Ltd. published this content on 07 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2023 02:25:02 UTC.