Corporate Communications Department 1-3-1 Shimoteno, Himeji, Hyogo 670-8567, Japan Phone: +81-79-294-6317 Fax: +81-79-299-6292 corporate.glory-global.com

GLORY CSR Report 2017 GLORY at a Glance Editorial Policy Table of Contents

Corporate name : GLORY LTD. Stock listings : Tokyo Stock Exchange (1st Section) The GLORY CSR Report 2017 aims to inform a wide range of Message from the President 3 Founded : March 1918 Number of employees : 3,246 (Group: 9,296) stakeholders about the CSR initiatives that GLORY LTD. and GLORY Group companies conducted during fiscal year 2016. Incorporated : November 1944 Note: As of March 31, 2017 Development, manufacturing, sales, and Capital : ¥12,892,947,600 Line of business : maintenance of money handling machines, data This report contains information in line with the Standard processing equipment, peripheral devices, vending Disclosures of the Sustainability Reporting Guidelines, machines, automatic service equipment, etc. Version 4 set out by the Global Reporting Initiative (GRI). GLORY is also in the process of identifying material issues in line with the relevant process defined by the GRI. Business Segments Corporate Philosophy Special Report outlines GLORY’s facial recognition and Management Creed 5 Main Customers Main Products and Goods technology, which is expected to find application in a wide range of areas. The GLORY CSR Report 2017 also covers Financial Market Open teller systems Cash monitoring cabinets major eorts in fiscal year 2016 related to environmental GLORY’s CSR Philosophy 6 Coin and banknote recyclers Security storage systems protection, social action, and corporate governance. Further ecure Financial institutions, OEM clients, for tellers Key management systems Safe and S Society and others in Japan Coin recycling modules for ATMs Banknote recycling modules details can be found on the GLORY website. Multifunctional banknote changers for horse race ticket vending machines Booklet content Philosophy Corporate Corporate Philosophy Vision Management Creed Retail and Transportation Corporate Action Medium-Term Supermarkets, department stores, Coin and banknote recyclers Ticket vending machines Guidelines Management Plan Markets Employee Action Guidelines for cashiers Employee Standards of Behavior Annual Management Plan cash-in-transit companies, railroad Cigarette vending machines (GLORY Spirit) Sales proceeds deposit machines companies, tobacco companies, Medical payment kiosks Mindset Action hospitals, local governments, Multifunctional banknote changers RFID self-checkout systems general companies, and others Cash recyclers for gas stations for cafeterias in Japan Coin-operated lockers Ballot sorters for handwritten ballots Major CSR Initiatives in the Value Chain 7

Amusement Market Covers noteworthy Card systems for pachinko parlors Pachinko ball counters initiatives conducted in Banknote conveyor systems for individual pachinko machines Amusement halls (pachinko parlors) fiscal year 2016. Membership management systems and others in Japan Pachinko prize dispensing machines for pachinko parlors Pachinko ball/token counters Web content Level of importance to stakeholders Overseas Market Banknote recyclers for tellers Coin and banknote recyclers Level of importance to GLORY Financial institutions, Banknote sorters for cashiers cash-in-transit companies, Banknote and check Sales proceeds deposit machines retail stores, casinos, OEM clients, deposit modules for ATMs Coin wrappers Special Report and others overseas Banknote counters Regular eorts not GLORY’s Facial Recognition covered in the booklet are posted on our Technology Contributing website, along with to a Secure Society 9 Others Other than those above Other than those above news and other detailed information.

■ Report Subjects This report generally describes the eorts of GLORY LTD. It will be explicitly stated if a particular item being reported Feature comparison Feature concerns a specific GLORY Group company or another Average face Subject company. Moreover, the report on environmental activities Financial Data (Consolidated) covers the ISO 14001-certified oces of GLORY LTD. and Governance 12 GLORY Group companies. Net Sales Operating Income Sales by Business Segment Quality Initiatives 13 (Billions of yen) (Billions of yen) Reporting Period 250 25 Others Financial Market ■ 2.4 billion yen 53.3 billion yen 226.9 Fiscal year 2016 (April 1, 2016 to March 31, 2017) 218.6 222.3 222.5 (1.1%) (23.9%) 20.5 20.3 (May include reporting of items occurring in or after April 2017.) Human Resource Initiatives 15 200 190.9 20 18.6 186 FY2016 16.7 consolidated 150 15 14.4 sales ■ Publication Date Social Initiatives 17 July 2017 222.5 Retail and 100 10 billion yen Transportation Markets Environmental Initiatives 19 Overseas 42.6 billion yen ■ Referenced Guidelines Market (19.2%) 50 5 Sustainability Reporting Guidelines, Version 4, Global 103.7 billion yen Amusement Stakeholder Dialogue 21 (46.6%) Market Reporting Initiative (GRI) 20.4 billion yen 0 0 (9.2%) 2012 Environmental Reporting Guidelines, Ministry of the 2012 2013 2014 2015 2016 (FY) 2012 2013 2014 2015 2016 (FY) Note: Figures in parentheses indicate the percentage of sales. Environment, Japan Third-Party Opinion 22

1 GLORY CSR Report 2017 GLORY CSR Report 2017 2 Message from the President

into our corporate philosophy: “We will contribute to the peripheral equipment and operational know-how. Our wish is development of a more secure society through a striving to help create environments in which humans and robots can spirit and cooperative e orts.” work together in harmony.

In addition to our core proprietary technologies in Achieving a Sustainable Society by Practicing recognition/identification and mechatronics, one of our Business Founded on Our Corporate greatest strengths is the ability to respond promptly to Philosophy customer needs. We do so through a consistent group structure that integrates every stage of the product process, In 2014, GLORY signed the United Nations Global Compact. Hirokazu Onoe including planning, development, procurement, We believe the 10 principles covering human rights, labor, the President, GLORY LTD. manufacturing, sales, and maintenance. We also believe that environment, and anti-corruption are based on the same our overseas M&A activities have enabled us to enhance our values as those underlying our Corporate Action Guidelines. presence in the global market by strengthening our sales and That is why we make every e ort to comply with these 10 maintenance capabilities. principles. Our Guidelines of GLORY handbook contains our corporate philosophy, management creed, Corporate Action Strategy for Meeting Diversi ed Needs and Guidelines, and other information. Produced in eight di erent Creating New Value languages, this handbook has been distributed to all our worldwide employees. Looking towards our centennial in 2018, we have formulated the Long-Range Vision 2018 as a shared target for achieving In September 2015, the United Nations adopted the the group vision of “GLORY as the world’s top brand”—that is, Sustainable Development Goals (SDGs). The SDGs identify the making ourselves the world’s leading brand in our field. We private sector as one of the parties responsible for tackling have set a long-term basic policy of “Create new value issues such as poverty, employment, and environmental through ‘superb manufacturing technique’ and pursue protection. Because GLORY does business on a global scale, dreams for the future.” Under this policy, we have focused on we are highly aware of the importance of human rights and expanding business in areas where we can make the most of the environment in our business activities. We comply with our core technologies. One such area is biometric all laws, regulations, and international norms, while ensuring authentication incorporating facial recognition. GLORY that activities across our entire value chain are thoroughly embarked on the development of facial recognition transparent and ethical. technology in 2000. We utilized the recognition/identification technologies that we had cultivated while developing money Guided by our corporate philosophy, we will continue to earn Creating New Value through Manufacturing handling machines and applied them to R&D in facial the trust of our stakeholders and strive to be a corporate recognition. In 2003, we successfully brought the new group contributing to the realization of a sustainable society. technology to market. Today, GLORY’s facial recognition Technology while Helping to Realize a Sustainable Society boasts some of the highest levels of recognition technology June 2017 and accuracy in the industry. As featured on pages 9 to 11 of this report, GLORY’s facial recognition has already been successfully applied in a wide range of fields, including hospitals and hotels. We expect to see it incorporated into A Consistent Group Structure Allied to Japan Mint). This was the first such product made in Japan, many more areas in the near future, as we move towards a Unique Core Technologies That Are and it was our first step as a pioneer in the money handling safer and more convenient society. Embedded in Our DNA machine business. GLORY has since released a string of first-in-Japan products, such as coin wrappers, coin sorters, With the UK voting to split from the EU, Donald Trump’s rise cigarette vending machines, and coin-operated lockers with Meanwhile, a shortage of labor has become a pressing issue to power in the US, and frequent terrorist incidents, world extendable time limits. in Japan. One way to solve this problem is to use robots. In a airs are growing more volatile. The global economy is April 2017, GLORY launched a system integration business unpredictable, its future uncertain. Despite all this, GLORY Over the years, GLORY has achieved many innovations in the that makes use of humanoid robots. The aim is to have continues to respond to current trends—as we have since our cash-related business, and it has expanded the market for customers apply to their production sites the production founding in 1918—while taking on the challenge of creating money handling products. Underlying all of this is our technology know-how that we have cultivated over the years. technical innovations and making products that society unceasing e ort to benefit people by creating products that By introducing robots, customers can reduce the burden on needs. GLORY is proud of its 100-year history. Our success have never been seen before. It’s something which is in our workers and achieve highly ecient manufacturing. GLORY today can be traced back to 1950, when we delivered a coin company DNA and which has been passed down through the can provide the whole package ranging from setting up an counter to the Ministry of Finance’s Mint Bureau (now the generations since our founding. This spirit is incorporated automated robotic production line to developing the

3 GLORY CSR Report 2017 GLORY CSR Report 2017 4 Safe and Secure Society Corporate Philosophy and Management Creed GLORY’s CSR Philosophy

GLORY believes that corporate social responsibility (CSR) is achieved Philosophy Corporate Corporate GLORY’s corporate philosophy, which represents our corporate goal and raison d’être, is: Philosophy Vision by putting its corporate philosophy into practice. This means oering Management Creed Corporate Action Medium-Term “We will contribute to the development of a more secure society through a striving spirit and money handling machines and other products and services of high Guidelines Management Plan social importance to respond to customers’ needs for eciency and Employee Action Guidelines cooperative eorts.” These words express our determination to achieve growth as a sustainable Employee Standards of Behavior Annual Management Plan accuracy and thus contribute to the realization of a safe and secure (GLORY Spirit) enterprise by contributing to a prosperous society through our uncompromising approach to product society. Mindset Action

development. This philosophy guides our eorts to continuously improve our corporate value through Corporate Philosophy Structure Business Management Structure sound and ecient business management, so that we can exist in harmony with society and earn the trust and support of all stakeholders. CSR Promotion Framework CSR Education CSR e orts in the GLORY Group are led by the CSR Every employee in the GLORY Group receives a copy of the Corporate Philosophy Committee, which is chaired by the President and made up Guidelines of GLORY handbook, which contains information of management-level employees. The committee convenes such as the corporate philosophy, management creed, and twice a year, at which time it deliberates on the basic the Corporate Action Guidelines. The handbook is available We will contribute to the development of a more secure society direction and plans for CSR management and establishes in eight di erent language versions to ensure that policies for major annual CSR initiatives. employees around the world have the shared through a striving spirit and cooperative e orts. understanding needed to realize GLORY’s corporate President philosophy. GLORY also promotes understanding of CSR through an e-learning program for employees and the

CSR Committee publication of CSR-related information on its intranet. Management Creed Secretariat (Corporate Communications Department) Department Managers • Through a spirit of continuous development, we will provide products and services our customers can rely on. Employees Guidelines of GLORY handbook • We will build a vigorous corporate group through respect for the individual and teamwork. • We will endeavor to act as a responsible corporate citizen and coexist harmoniously with society at large. Progress on Identifying Material Issues In order to continue being a company that is trusted by its departments. In fiscal year 2017, GLORY is holding stakeholders and that contributes to a sustainable society, dialogues with numerous third-party experts to confirm GLORY is in the process of identifying material issues. The the validity of these issues, and it is also identifying the company is doing this by identifying and understanding most relevant ones through deliberation by the CSR 2017 Medium-Term Management Plan key CSR issues and considering the e ect these issues Committee. The material issues identified are being linked have on society and their importance to GLORY. to the company’s Basic Policy Medium-Term In fiscal year 2016, while considering the company’s Management Plan Realize business growth through “customer-oriented superb manufacturing” corporate philosophy, management creed, and the and are being and enhance profitability to achieve the Long-Range Vision 2018 Corporate Action Guidelines in reference to international properly frameworks such as the Global Reporting Initiative (GRI) managed through guidelines and ISO 26000, GLORY made a list of the issues the PDCA cycle. Business Strategy Constitutional Strategy Corporate Management Strategy based on opinions from the company’s various Material issues were listed based on opinions from various departments in GLORY

Enhance profitability by Provide timely products Basic Reinforce group expanding business and services meeting Strategy management infrastructure size/area market needs GLORY’s material issues have been identified GLORY has clarified the social agendas that it according to the value chain, and these issues will address proactively, and it has opened are in tune with the work the company is dialogue with its stakeholders in earnest. We • Group governance doing. They cover the majority of the believe this will have a positive e ect on the • Product development • Domestic business • Human resources sustainability-centered fields. GLORY has company’s supply chains. Focus • Production/Procurement • Overseas business • Capital/Financing prioritized its material issues using a matrix • Quality assurance • Information systems comprising two axes: company business and I hope that GLORY will continue to respond to stakeholders. This method of prioritization the needs of society and conduct tireless Seiichiro Shimamoto follows GRI guidelines. In line with its PDCA to make further advancement in its CSR. Professor, Faculty of Sociology, Kyoto Bunkyo University philosophy of promoting security in society,

5 GLORY CSR Report 2017 GLORY CSR Report 2017 6 Major CSR Initiatives in the Value Chain

These are the major initiatives that the GLORY Group is carrying out for each stakeholder category in the value chain.

Planning Development Procurement Manufacturing Sales Maintenance

Value Chain Value GLORY’s mission is to continue to take on GLORY remains dedicated to developing Besides carrying out fair and open Under GLORY’s optimized manufacturing GLORY analyzes the exact needs of each GLORY provides prompt, exacting, and the challenge of developing products and products that respond to the needs of purchasing and ensuring stable system, each of the company’s factories market and customer so that it can provide sincere service to earn the trust of solutions that satisfy customer needs. customers from various countries and procurement, GLORY makes CSR part of its around the world uses its own strengths to high-value-added products and solutions customers and provide them with regions. entire supply chain. deliver high-quality products in a timely in a timely manner. satisfaction and peace of mind. manner. Customers Customers Customers Customers Customers Customers • Create new value and solutions • Develop products that match • Ensure quality and pursue • Ensure quality and reliable supply • Provide products that match • Provide prompt, reliable • Plan products that match customer customer needs in a timely manner appropriate, competitive pricing • Shorten lead-time customer needs in a timely manner maintenance needs • Ensure quality • Provide appropriate information on • Improve maintenance quality through Business partners • Boost cost competitiveness • Incorporate universal design products and services customer focus • Promote CSR-oriented procurement Customers Global environment • Develop products utilizing new Global environment • Properly manage customer • Plan services that match customer technologies in unison with suppliers information and personal information needs • Plan environmentally friendly • Strengthen partnerships with • Manufacture with an eye to saving • Properly manage customer products suppliers resources, recycling, and reusing information and personal information Customers Global environment Customers Global environment • Respect human rights in the supply • Develop environmentally friendly Local communities Global environment chain • Sell environmentally friendly products • Map out the product lifecycle • Ensure safety in the vicinity of each products Global environment Employees plant • Switch to eco-cars Employees Global environment Employees • Sell CFC-free cleaning goods • Promote a work-life balance Employees • Promote a work-life balance • Promote green procurement • Promote a work-life balance • Provide education to improve • Protect biodiversity • Respect human rights and ensure Employees employee skills occupational health and safety Major Initiatives for Each Stakeholder Initiatives Major • Promote a work-life balance • Train employees based on qualification systems

Energy-induced CO2 emissions 16,706 t-CO2 (2.4% increase over previous fiscal year*) Scope 1 Scope 2

CO2 emissions from parts CO2 emissions from product usage 2.7% increase 2 and materials procured Scope 3, CO emissions from product disposal Category 11 over previous Scope 3, Category 1 176,628 t-CO2 fiscal year* Scope 3, Category 12

CO2 emissions from transportation and shipping 2 2 4.0% increase 2,080 t-CO 167, 275 t-CO Scope 3, Category 4 over previous (4.0% increase over previous fiscal year*) (6.2% increase over previous fiscal year*) 2 fiscal year* Environmental Impact 10,386 t-CO

Constantly Pursuing New Value Developing Products That Building a Relationship of Trust Teaching Workers the Promoting Optimal Solutions for Providing Customer Solutions Exceed Customer Expectations Fundamentals of Quality Financial Institutions Through New Services Tomoyuki Shigeko Takashi Kiyotaka Chiaki Asuka Dewa Fumino Komiyaji Sasou Seya Tachi Product Planning Design Purchasing Production Solution Business Service Planning Department, Department 2, Procurement Department 1, Promotion Department, Department, Domestic Business System Development Department, Himeji Factory, Finance Market Sales Customer Service Headquarters Division Purchasing Division, Production Division, Division, Production Headquarters Domestic Business Service Headquarters Headquarters Headquarters

Voices I work day in and day out planning new It’s my job to contribute to the timely I work in the purchasing of parts such as It goes without saying that first and foremost in I promote new solutions that utilize digital We provide monitoring services for open products and replacement products to development of products that customers steel plates, resin, and rubber from our the assembly process is ensuring that every form-entry machines to financial teller systems to ensure that GLORY respond to the increasingly diverse needs of require. I also cooperate with our planning, domestic suppliers. I strive to maintain a single screw is tightened and that there are institutions throughout Japan. The aim is to products have zero downtime. We will our customers. We will continue to come up sales, and maintenance divisions so that relationship of trust with suppliers and zero defects. I strive to train my subordinates minimize the workload for both customers continue to plan services that will allow with products that create new value by using we can determine customers’ latent needs consider various risk factors to ensure that and carry out constant improvements so that and financial institutions, while facilitating customers to use GLORY products advanced technologies such as artificial and provide them with products that we have a stable supply of the parts we all workers have complete confidence in GLORY services that provide greater convenience stress-free and that will boost their intelligence (AI) and Internet of things (IoT). exceed their expectations. need. quality and can enjoy the rewards of their job. to customers. workplace e ciency.

*CO2 emission increases over the previous fiscal year are due to increases in production volume.

7 GLORY CSR Report 2017 GLORY CSR Report 2017 8 Special Report GLORY’s Facial Recognition Technology The Many Faces of GLORY’s Facial Recognition Technology

Contributing to a Secure Society Case Case Comfort and Convenience Reducing Disruptions to Business 1 Through Keyless Living 2 Facial recognition for keyless entrance to rooms is one Bookstores and other retail establishments want to way that hotels could oer their guests a comfortable, prevent loss and damage to their businesses such as stress-free stay. Because doors unlock simply by facial shoplifting and vandalism. With a facial recognition recognition, guests can enter and leave without the bother system, shops can pre-register suspicious persons and of carrying a key then be alerted card around with when they enter them or the worry the shop again. of losing it somewhere.

Facial recognition technology verifies people’s identities from videos or photos. This Case Case convenient, non-contact verification technology is enjoying widespread use in the public and Providing Information Greater Security Through private sectors in Japan. Based on User Attributes Authorized Admission GLORY 3 4 Facial GLORY’s facial recognition technology, which makes use of the company’s expertise in areas By linking facial recognition Installing facial recognition systems in places requiring Recognition such as coin and banknote identification and handwriting recognition, oers the industry’s technology with digital security measures, such as apartment buildings or oce Technology highest level of verification accuracy. By verifying a person’s face through the scanning of all signage, it’s possible to buildings, can automatically open doors for authorized features across the entire face with equal importance, GLORY’s facial recognition technology surmise a user’s age and personnel while keeping out all others. Because no IC provides high-performance, consistent reading of an identity with minimal interference from gender and then cards or PIN factors such as sunglasses and gauze masks, or low-quality images. automatically display codes are needed, information suitable to him users enjoy Highly Accurate Recognition Recognition Even When Face Tilted or her. Oering eective convenience and GLORY developed a recognition engine that uses judgment logic The facial recognition engine automatically makes an estimate of the information geared to greater security. to identify what makes each person unique. Based on an subject’s face at any given angle. Based on this, the engine then adjusts how individual users means “average face,” recognition is carried out by using the features each facial feature will look from various angles. This makes it possible for greater advertising of 100 points on the face. the engine to recognize a person even if he or she is facing a dierent eciency. direction than in the photograph originally recorded into the system.

Case Case Keeping Children Safe and Feature comparison Feature Customized Services Average face Subject 5 6 Easing the Burden on Daycare Staff Angle estimate GLORY’s facial recognition technology is used in the Biz Facial recognition technology holds promise for daycare Greater Recognition Accuracy Means Wider Application Pack service of Pepper for Biz, a model of the Pepper centers. Cameras installed in the parking lot and entrance area In February 2017, GLORY succeeded in developing facial used in a growing number of facilities, be it large humanoid robot geared to commercial customers. Pepper identify approaching visitors and provide this information to recognition technology with dramatic advances in commercial complexes, apartment buildings, or hospitals. uses facial recognition to estimate things like the gender sta inside the daycare via screens and voice announcements. recognition accuracy. A major advance was made in the GLORY will strive to provide new solutions using facial and age of At the same time, authorized daycare center users are recognition accuracy of the face at diering angles. This recognition technology to its existing customers in industries customers who automatically let opened up new areas of use for facial recognition systems such as finance and distribution, and it will establish enter a store. This inside. This in situations where it had previously not been possible (due business models that create new value for customers. allows stores to means daycare to, for example, the height of a security camera or the angle oer services sta can handle at which it was able to record passing subjects). Through the growing potential of its facial recognition geared to each visitors while technology, GLORY will contribute to the realization of a customer’s continuing to Ever since the company’s first practical application of facial society where people can enjoy life to its fullest in safety particular needs. keep an eye on recognition systems in 2003, GLORY products have been and with peace of mind. the children.

9 GLORY CSR Report 2017 GLORY CSR Report 2017 10 For details, please visit GLORY’s website. Governance http://corporate.glory-global.com/groupinfo/governance/

Based on its corporate philosophy, GLORY is pursuing sound and ef cient Prevention System for Non-Authorized Patients Leaving Hospitals business management that earns the trust and support of all stakeholders.

With the elderly making up an increasing number of in-patients at healthcare institutions in Japan, there are more and more cases of patients with dementia wandering o from the facilities and getting into accidents. Corporate Governance Risk Management By installing GLORY’s facial-recognition-driven Prevention System, hospitals can prevent such patients from leaving the premises and keep them safe. GLORY’s corporate philosophy guides its e orts to GLORY has a Risk Management Committee, which is continuously improve corporate value through sound and chaired by the President and which has the purpose of System uses facial recognition to prevent patients from leaving the hospital ecient business management, so that the company can maintaining and strengthening risk management for the GLORY’s (1) The photos of in-patients who require watching are recorded in the system. exist in harmony with society and earn the trust and entire GLORY Group. The committee regularly conducts Prevention support of all stakeholders. None of this can be achieved risk assessments and determines the divisions and System (2) The system detects whenever these patients attempt to leave the hospital. (3) Photographs and patient information are automatically sent to the PC or tablet of hospital sta . without a firm commitment to the continuing individuals responsible for each risk item. It works with improvement of corporate governance. GLORY will these divisions and individuals to implement continue its e orts to strengthen the supervisory and precautionary measures against risks during normal (1) Patient is registered Hospital sta go to executive functions of management, accelerate times and to secure and improve a system that can The patient’s photo is registered in the system after decision-making, ensure transparency and objectivity, respond promptly in times of crisis. In fiscal year 2016, the patient and his/her family give the hospital location to confirm permission to do so. and enhance compliance management. GLORY enhanced risk management at group companies while also strengthening emergency response Register patient’s photo Corporate Governance Framework capabilities and information security systems. GLORY adopts an audit and supervisory board system. Alert This means the company’s Board of Directors, which Compliance (2) Patient is detected activated includes two outside directors, makes decisions on important matters and oversees business execution, GLORY has a Compliance Committee as one way to while the Board of Corporate Auditors oversees the maintain and improve its compliance framework. This Camera recognizes actions of the Board of Directors. An executive ocer committee—which is chaired by the President and which patient’s face system allows the company to separate the management includes two outside experts (attorneys at law)— supervisory and business executive functions, thereby deliberates on important compliance-related issues (3) Message is sent enabling speedy and ecient business administration. In concerning the GLORY Group. GLORY also has in place addition, committees such as the Nomination Advisory four compliance helplines (including one outside helpline) Committee and the Compensation Advisory Committee in Japan. These helplines enable GLORY to detect and serve to boost transparency and objectivity when making correct problems at an early stage, while protecting those Customer Case Study: Hakui General Hospital important management decisions. seeking consultations. In addition, GLORY provides education to employees to thoroughly familiarize them Background Solution Main Benefits GLORY’s basic policy on corporate governance is set out with compliance. In fiscal year 2016, GLORY also held in the Corporate Governance Guidelines. e-learning and group training sessions for group The hospital had cases in which A total of 12 cameras, which operate Because patients are prevented from companies to ensure that transactions are always in-patients su ering from problems around the clock, were installed at four leaving without permission, both patients conducted fairly. such as dementia left the premises locations, including at the main and their families feel more at ease and without permission, leading to injuries entrance and the after-hours entrance. the hospital enjoys greater customer to the patient and more hours needed Thanks to the installation of the satisfaction. In addition, hospital sta Corporate Governance Framework (As of June 23, 2017) by hospital sta to bring them to safety. Prevention System, hospital sta are require less time to confirm the A way to ensure patient safety was alerted and can take immediate action movement of or search for patients of General Meeting of Shareholders urgently needed. when a patient attempts to leave the interest, which eases the burden on sta Appointment/ Appointment/ Appointment/Removal Removal Removal premises without permission. and improves hospital work eciency. Board of Directors Board of Corporate Auditors 4 Corporate Auditors 8 Directors (including 2 Outside Directors; 1-year term) (including 2 outside Operational Corporate Auditors) audit Representative Directors Our hospital has many elderly in-patients those who don’t know the patients—can get to Examination/Reporting Accounting Auditors living in the region, and we have for some time the scene promptly and take appropriate Examination Nomination Advisory Compensation Advisory Accounting Committee Committee audit now had a project team that oversees a range action. Advice/Direction of care services for them. Part of this care is the installation of the Prevention System using In the two years since we began using it, no Compliance Committee Management Conference Directors, Corporate Auditors, Corporate Lawyers facial recognition technology. We had patients registered in the system have gone Executive O cers, and others Disclosure Committee Internal previously used conventional security missing. Our aim is to keep the number of Audit Advice/ Outside Consultants cameras, but if the hospital sta watching the accidents due to missing in-patients at zero so Risk Management Committee Business Promotion Conference Department Direction Executive O cersExecutive Audit Yoichi Yamaguchi camera monitors didn’t personally know the that they can enjoy a safe, peaceful hospital patients, they couldn’t respond to certain stay. I believe that if this Prevention System is 4 compliance helplines Manager, situations as required. But with facial used at healthcare institutions all over the Healthcare Safety Management Department, recognition, we don’t need to be constantly country, elderly in-patients and their families, Development Manufacturing Sales Maintenance Administrative divisions divisions divisions divisions divisions Hakui General Hospital watching the camera monitors. Since alerts as well as local residents, can enjoy peace of are sent automatically, any of our sta —even mind and put their trust in hospitals. Group companies

11 GLORY CSR Report 2017 GLORY CSR Report 2017 12 For details, please visit GLORY’s website. Quality Initiatives Quality policy: http://corporate.glory-global.com/csr/stakeholder/customer.html

GLORY provides products and services in a timely manner to win the confidence and satisfaction of customers.

GLORY’s Standpoint on Quality Providing the Best Solutions

GLORY established its Quality Policy in 1994. Based on three priority guidelines, the company strives for uniform quality. GLORY aims to provide satisfying products and solutions GLORY provides a wide range of products that meet the GLORY implements thorough quality control activities in all stages of its business operations—product planning, development, for its customers. The company does this by precisely needs of specific situations. These include a self-service procurement, manufacturing, sales, and maintenance—so that it can respond to customer needs and develop reliable identifying customer needs—which change with the times coin and banknote recycler and a ticket vending machine, products and services. and social environment—and by being thoroughly familiar which work together to allow customers to process their with customers’ issues and operational procedures. own purchases. In addition, GLORY provides optimal solutions that include support for store management in We will provide products and services in a timely manner to win Quality Policy In recent years, the distribution industry in Japan has the form of sales data collection and analysis. This way, the confidence and satisfaction of customers. been suering from a chronic lack of labor and long GLORY is working to find solutions for its clients and for 1 By sensing the advanced market needs, develop products that are working hours. Businesses need to pursue greater society at large. Three Priority attractive to customers. eciency and labor savings, so that they are able to operate with limited manpower. Guidelines 2 Establish the quality of products at as an early stage as possible. 3 Place importance on customers’ first impression of quality and on after-sales services. Customer Case Study: Origin Toshu Co., Ltd. Origin Toshu opened “Origin,” a store with a new business concept that combines in-store dining and takeouts. As well as selling the company’s famed ready-to-eat food items and bento packed meals for takeout, it also oers an in-store eating area. Developing Products That Appeal to Customers GLORY responded to Origin Toshu’s need for labor savings and enhanced hygiene and made suggestions to facilitate operations.

Product Development That Anticipates Market Manufacturing from the User’s Point of View Main requests ● To e ciently run the store with limited manpower. Needs When creating a product, GLORY focuses not only on from Origin Toshu ● To provide a hygienic service that does not involve the handling of cash. GLORY develops products for various industries, such as functionality, but also on customer usability. As part of finance, retail, transportation, and entertainment, as well this process, the company conducts user tests from the as for overseas markets. Its product development earliest stages of product development to check the Ready-to-eat food items Self-service coin Touchscreen anticipates the varying needs of customers and their positioning and visibility of a product’s functions. GLORY for takeout, including and banknote In-store eating area ticket vending markets. Each division—from planning to maintenance— tries to identify bento packed meals recycler machine works closely together to bring forth products that will issues at an early deliver the utmost customer satisfaction. GLORY pursues stage and initiate ● Minimizing wait time ● Less burden on sta higher added value in its products by trying to deliver speedy at checkout counter Interacting with the sta is operational eciency and accuracy as well as usability improvements so While sta register or not required for ordering and payment. Therefore, and environmental friendliness. that it can develop bag products, customers can make the payment sta can focus on other more user-friendly themselves. aspects of customer service. Timely Delivery of High-Quality Products products. ● Better hygiene ● Speedy product output GLORY follows two key points in order to deliver Testing for usability Because paying for the Orders are sent to the Self-service coin and banknote recycler Touchscreen ticket vending machine high-quality products to customers in a timely manner. items can be done without kitchen as soon as they are Fostering Young Designers Who Can Maintain Quality the sta handling cash, food made, eliminating mistakes The first point is the development of precursor technology. Right from the start, young designers at GLORY are trained products can be handled in with orders and reducing product output time. GLORY’s smooth product development process is based on to improve their skills at developing high-quality products. a sanitary manner. first identifying the kind of technology that a given market currently lacks and, keeping that in mind during the During their first few years in the company, designers development process, bringing that new technology to attend the delivery and installation of GLORY products. fruition. The second point is the creation of a technology They see the actual products in operation and listen to The biggest change I see is that there’s no to use hand sanitizer every time they touched platform (standardization). To reduce technological customer feedback on site. Sta members from GLORY’s congestion anymore at the checkout. Installing cash. There’s no need for that anymore, so our redundancy and increase eciency in development, maintenance division lead training sessions for third-year the self-service coin and banknote recycler and operations can run more eciently and cleanly. GLORY creates a platform of technologies for which quality designers. Participants disassemble and reassemble the ticket vending machine has made the has been assured. By incorporating this platform into products and test their operation. This training allows ordering and payment processes smoother. GLORY products are so easy to use that products that share employees to Even during peak times, I feel that customers customers can operate them without any can shop comfortably and enjoy their food hassle at all. We look forward to receiving common functions, identify factors that without waiting too long. Because we don’t further improvements and support from GLORY reduces costs determine a need anyone at the checkout, our sta can GLORY—for example, they could provide and shortens product’s user Shingo Tsuruoka focus more on the customers and provide compatibility with Waon and other electronic development times. friendliness, while Manager, Task Solution 1 Department, better table service. And there’s less burden on money options or add an interface that foreign The result is speedy also learning about Origin Toshu Co., Ltd. sta, because they no longer need to handle visitors can understand easily. delivery of products ecient product the customers’ money. In the past, our sta had with stable, high maintenance. quality. Product development Training young designers

13 GLORY CSR Report 2017 GLORY CSR Report 2017 14 For details, please visit GLORY’s website. Human Resource Initiatives http://corporate.glory-global.com/csr/stakeholder/employee.html

GLORY respects every employee as an individual and strives to create an enriching and pleasant work environment.

Promoting Diversity Work-Life Balance Fostering Human Resources

GLORY aims to build a workplace where every employee, GLORY has in place numerous initiatives aimed at Fostering Globally Minded Human Resources Japan to deepen their understanding of Japanese production regardless of gender, nationality, sexual orientation, or promoting a work-life balance. These initiatives enable Today, overseas sales account for approximately 47% of systems. disability, can utilize his or her talents to the fullest. employees to match their job and work schedule to their GLORY Group consolidated net sales, and overseas employees lifestyle while maximizing their abilities and career account for approximately 39% of all Group employees. Given New Career-Building Initiatives Equal Opportunities for Women potential. this group make-up, the company is placing special emphasis GLORY helps employees achieve their personal career Since fiscal year 2011, GLORY has been focusing on on fostering human resources that can support international plans by providing systems and measures that support ensuring gender equality and delivering equal Work-Life Balance Support Systems expansion. It is bringing this objective about through the development of their capabilities and that further opportunities for female employees. Initiatives include the Employees can take advantage of systems that allow programs such as the GLORY Executive Development their careers. GLORY Women’s College, where women are trained to them to place equal importance on raising children and Program (GEDP) and Manager Training for Production become candidates for managerial positions. So far, 53 doing their jobs. Headquarters’ Overseas Group Companies. ● In-House Job Posting System women have graduated from the college. Through the in-house job posting system, employees get In December 2016, GLORY opened an in-house daycare GLORY also provides as many opportunities as possible for the chance to take the reins of their own career. A In fiscal year 2016, GLORY formulated an action plan center called “G Kids Home” for children of full-time exchanges between employees in Japan and those at department seeking new personnel solicits new based on Japan’s GLORY employees. The daycare center caters to children overseas subsidiaries. members, and interested employees are free to apply. Act on the aged from 57 days up to the age at which they enter This system enables employees to build their own career Promotion of elementary school. Knowing that their children are taken ● GLORY Executive Development Program (GEDP) path, while at the same time invigorating the company Women’s care of on company premises gives parents peace of Management-level employees from the GLORY Group are organization and boosting employee motivation. Participation and mind. GLORY is creating an environment that enables selected to take part in GEDP, a program aimed at Advancement in employees to build their fostering individuals who can be active on the global ● Career Consultation the Workplace. careers while raising a stage. Four intensive training sessions held over an GLORY set up a consultation service where employees The company has family. eight-month period give participants the skills and can get advice on their career plans and skills since put the plan knowledge needed to take on executive positions. The development. Employees can consult via e-mail or phone, into action. A class in the GLORY Women’s College program also provides the opportunity for mutual or they can meet with a counselor. The service aims to understanding through exchanges and dialogue among provide career support while taking into account each Action plan based on the Act on the Promotion of participants, which further facilitates global networking. employee’s unique individual perspective. Women’s Participation and Advancement in the Workplace GEDP was held for G Kids Home the first time in From fiscal year 2016, have 20% of new fiscal year 2016 Respecting Human Rights 1 graduate hires in the next three years be female and involved 13 All employees must abide by GLORY’s Corporate Action Over the next five years, double the number of participants from Guidelines. These stipulate rules on respect for 2 female managers (i.e., those at the rank of Japan and six individuals, talent development, and workplace safety. section manager or higher) other countries. Childcare at G Kids Home They also clearly call for respect for other employees’ diversity, personalities, individual dierences, and—above GLORY also helps employees to balance work time with all—human rights. To ensure that these eorts extend Employing People with Disabilities A GEDP session time spent caring for sick or elderly family members. In beyond the GLORY Group and throughout the entire In 1999, GLORY Friendly Co., Ltd. was established to give fiscal year 2016, GLORY extended the period for nursing supply chain, the company has produced the GLORY CSR people with disabilities an opportunity to make a living care leave from 180 days to 365 days per family member. ● Manager Training for Production Headquarters’ Procurement Guidebook (for suppliers in Japan) and the and contribute to society. Under the slogan “Foster a Other improvements to the nursing care leave system Overseas Group Companies GLORY Supplier Code of Conduct (for overseas suppliers). creative working environment by valuing communication include allowing leave in separate batches and extending As part of the company’s eorts to go global, GLORY’s These documents outline rules on respect for human with one another and fully demonstrating our skills,” the period during which employees may reduce their Production Headquarters held training for managers at two rights that all suppliers are urged to follow. employees conduct duties such as company janitorial daily working hours. subsidiaries: GLORY Denshi Kogyo (Suzhou) Ltd. and GLORY work and landscaping, in-house documentation and mail (PHILIPPINES), INC. The training focused on advancing the The GLORY Group has signed and participates in the Reducing Long Hours of Work delivery, and waste disposal. As of the end of fiscal year self-sustaining capabilities of subsidiaries. Participants at the United Nations Global Compact, which advocates 2016, employees with disabilities accounted for 2.23% of GLORY strives to modify work processes and schedules in session studied management, learned Japanese technology universal principles covering the four areas of human all GLORY Group order to reduce constant bouts of long work hours. This and know-how, and rights, labor, the environment, and anti-corruption. The employees. helps to bolster employees’ mental and physical took part in a Group will continue to make respect for human rights a well-being and maintain their motivation for work. program aimed at cornerstone of its management. reinforcing risk In an eort to impress upon employees the importance of management at the working eciently so as to avoid overtime, GLORY has production site. instituted “no-overtime days” and “no-overtime weeks.” They also toured And to encourage employees to go home on time, the GLORY company has also put a limit on the number of overtime headquarters and GLORY Friendly employees clean up an open area hours they can work each day. group companies in An overseas group company manager training session

15 GLORY CSR Report 2017 GLORY CSR Report 2017 16 For details, please visit GLORY’s website. Social Initiatives http://corporate.glory-global.com/csr/stakeholder/community.html

GLORY will harmonize and advance the interests of the company and of society. As a good corporate citizen, it will also actively participate in social action programs.

Contributing to Society Through Other Contributions to Society Business Activities Charity via GLORY TS Cup in the US children’s building blocks from sustainable wood (wood Foreign Currency Coins for Product Testing ● Hands-on Classes for Parents and Children As part of the GLORY TS Cup (a technical skills from forest thinning) with the support of the Lifestyle Donated to UNICEF This program is held every spring and autumn with the competition for GLORY Group company field maintenance Research Institute of Forests NPO. The GLORY Group provides products to customers in over goal of strengthening the bonds between parents and technicians) in May 2016, a charity game was held in 100 countries around the world. Before products are children through a range of fun and exciting experiences. which participants predicted the winning region. The For fiscal year 2016, the event was held in June at the shipped, they must be tested using coins from the entry fees from this game were donated along with Shinagawa Business Place and was attended by 80 country of their destination. Once every few years, these In May 2016, 80 children and parents took part in the donations from Glory employees. After cutting testing coins are replaced event, enjoying a thrilling boat cruise of the Naruto Global Solutions Inc. to a the pieces from the with new ones, and the whirlpools and trying dragline fishing, followed by a Canadian natural thinned wood, old coins are donated to barbecue. Later that year, disaster relief participants carefully the Japan Committee for in November, a hot-air organization and sanded and polished each UNICEF. This contributes balloon ride was held. American regional building block. A total of to the support of Three hundred children charity groups. 400 blocks were donated activities that improve and parents learned how to a daycare center near the lives of children in hot-air balloons work A participant with a collection of voting stickers the Shinagawa oce. Children play with the building blocks donated by GLORY developing countries. Testing machines using foreign currency and took turns boarding one anchored at a local elementary school. Children help pull in a fishing net GLORY Joins CEZIA Fun Run in the Philippines Participating in the Table for Two Program Fostering the Next Generation Around 100 employees of GLORY (PHILIPPINES), INC. took Since 2011, GLORY has had a special menu in its GLORY Foundation for Elementary School Students part in the CEZIA Fun Run in the Philippines in November headquarters cafeteria in support of the Table for Two In March 1995, GLORY established the GLORY Foundation ● Children’s Theater 2016. Held with the aim of contributing to healthy (TFT) program run by NPO Table for Two International. for Elementary School Students with the goal of The Children’s Theater project is held with the goal of lifestyles and to the alleviation of climate change, the Under this program, the GLORY cafeteria oers patrons supporting the sound development of young people. enriching the aesthetic sensibilities of youngsters and event featured 3 km and 6 km fun runs and brought healthy meals that prevent lifestyle diseases, while at the Through the foundation, the company conducts sports, planting in them the seeds of creativity. together about 3,500 employees from companies in the same time donating part of the price of each meal to arts, and cultural activities that have included hands-on Cavite Economic Zone. provide school meals in developing countries (Uganda, science classes, hands-on classes for parents and In fiscal year 2016, 3,200 Using donations from Rwanda, Malawi, and Ethiopia). children, and children’s theater. A cumulative total of elementary school participants, sponsorship 95,400 people have taken part in these activities since the students and their fees from corporations, In fiscal year 2016, 17,042 school lunches were provided foundation was launched. parents attended and money from the sale as a result of GLORY’s TFT program, bringing the total performances of the of t-shirts, a donation since 2011 to 74,608 The foundation also provides assistance to organizations musical, The Prince and was made to a project to school lunches. In that work towards the sound development of elementary the Pauper, presented by protect the wilderness addition, GLORY school students through activities in sports, science, and the Shiki Theater inside the economic CEZIA Fun Run participants from headquarters installed GLORY (PHILIPPINES), INC. culture. Company. Children enjoying the musical zone. more drink vending machines whose ● Hands-on Science Classes proceeds are used for In hands-on science classes held during the summer ● Kendo Tournament for Elementary School Children GLORY Joins B2Run in France the TFT program. holidays, elementary school students build their own Every year in October, elementary school students In September 2016, 16 employees from Glory Global The TFT menu changes daily science projects, experiencing firsthand the wonders of selected from member organizations of the Himeji Kendo Solutions (France) S.A.S. took part in the B2Run charity science and in the process cultivating their creativity and Federation take part in a tournament. The aim is to teach race. The event is run by UNICEF France to support Cosponsoring the World Heritage Himeji Castle unique powers of imagination. GLORY employees take the children the importance of manners through this activities that protect the Marathon 2017 part by helping the students with their projects. traditional martial art and contribute to helping children life, health, and rights of GLORY was a cosponsor of the World Heritage Himeji grow soundly in mind children around the Castle Marathon 2017 held in February. Fifty GLORY In fiscal year 2016 science classes, 200 students from and body. world. employees volunteered on race day to assist grades three to six took on the challenge of building their approximately 7,000 participants running the full own hovercrafts. In the fiscal year 2016 Around 3,000 runners marathon. tournament, 134 children from more than 80 from 17 organizations companies participated Several GLORY competed to decide the in this event. B2Run participants from Glory Global Solutions employees also took part (France) S.A.S. best young kendo in the race itself, practitioners. Competitors in the kendo tournament responding to the rousing Making Building Blocks from Sustainable Wood cheers from roadside With the goal of protecting the environment and spectators with a spirited contributing to children’s education, GLORY creates run to the finish line. Students making hovercrafts A finished hovercraft GLORY employee volunteers cheering on the runners

17 GLORY CSR Report 2017 GLORY CSR Report 2017 18 For details, please visit GLORY’s website. Environmental Initiatives http://corporate.glory-global.com/csr/environment/

The entire GLORY Group works to protect the environment under the GLORY Environmental Vision.

Leading the way Preserving Biodiversity for a prosperous Earth To create a sustainable society, the GLORY Group has formulated an environmental with dynamics and technology through Since fiscal year 2011, GLORY has strived to protect and vision with three areas of focus: products, business, and awareness. The vision’s cooperative e orts top priorities are the prevention of global warming, the management and reduction maintain biodiversity through initiatives such as forest of chemical substances, the eective use of resources, and the preservation of conservation activities and nature appreciation events at Preservation biodiversity. of biodiversity the GLORY Yumesaki Forest (Himeji City, Hyogo Prefecture), Prevention of E ective use global warming of resources with the aim of conveying to young people the importance Management Products and reduction Business of nature. And since fiscal year 2013, GLORY has held Based on this vision, GLORY has formulated the 2017 Medium-Term Environmental of chemical substances A forest conservation activity in Nagano Prefecture Plan, a three-year plan starting in April 2015 as a group-wide environmental eort. forest conservation activities in the mountains of Saku, GLORY Awareness Nagano Prefecture. At this location in April 2016, GLORY Environmental Vision To promote the reduction of environmental load and the planted 1,000 Quercus serrata trees; in July, employees preservation of natural resources on a global scale, we will contribute to “a solid future” for the global environment thinned out the undergrowth to enable saplings to get enough sunlight.

Developing Environmentally Friendly Products Biodiversity preservation activities are being carried out by The GLORY Group develops environmentally friendly the entire GLORY Group. For example, the Sayo Factory of group company GLORY Products Ltd. has been maintaining products that minimize environmental impact throughout Biotope at GLORY Products’ Sayo Factory the product lifecycle—from material procurement and a biotope on its grounds since fiscal year 2014. customer use of the product through to final disposal. 2017 Medium-Term Environmental Plan, Fiscal Year 2016 Results GLORY certifies products as G-Eco products if they satisfy Activity 2017 Medium-Term Fiscal Year certain in-house standards for environmental Areas Activity Themes Environmental Targets 2016 Targets Fiscal Year 2016 Results friendliness—for example, if they exhibit electric power Reduce CO2 emissions compared with Reduce by at least 15% Prevention of Reduced by average of 28.3% previous models by at least 15% (average (for products developed eciency at least 15% better than existing products and global warming (target achieved for 7 of 9 models) across all new products) in fiscal year 2016) if they conform to regulations on chemicals contained in products. Between fiscal years 2009 and 2016, GLORY Products RoHS Directive: Confirmed compliance of new parts for Management and Development of Comply with all EU-bound products developed 106 G-Eco products. The G-Eco product logo is environmentally reduction of Make all new products RoHS compliant relevant laws REACH Regulation: Surveyed SVHC amounts. friendly chemical substances used on product brochures and the like to help customers Confirmed non-usage of restricted substances. products understand the environmental performance of GLORY RBG-200 banknote recycler for tellers Eective use Reduce by at least 3% Reduced by average of 15.2% (by reducing number of parts) Reduce CO2 emissions during parts products. (for products developed (5 of 9 models achieved emissions same as or lower than of resources manufacturing by at least 10% in fiscal year 2016) previous models)

Have environmentally friendly products At least 50% of sales Reducing Environmental Impact from Business Activities Prevention of account for at least 55% of sales Accounted for 52.8% of sales global warming Reduce annual average Reduced annual average by 2.3% Reduce annual per-unit energy consumption by 1% Eliminating Paper Use New Distribution Center in the Netherlands by 1% (base year: fiscal year 2010) GLORY’s Himeji Factory is working to reduce the use of Glory Global Solutions Ltd. established the European Business Reduction of paper by using tablets and by digitizing documents such Master Distribution Centre (EMDC) in Venray, the Management and environmental Conducted CMS audits at 7 group companies in Japan reduction of Strictly manage chemical substances on Conduct CMS audit as check sheets and work standards documentation. Netherlands. It has been in operation since fiscal year impact from a global scale (to comply with RoHS Directive) business chemical substances 2016. activities The Himeji Factory used to go through 1,000,000 sheets Eective use of Reduce annual volume of waste generated Manage control limits Reduced annual volume of waste generated by average of 2.2% of paper a year. In fiscal year 2016, this number was Glory Global Solutions previously operated warehouses in resources by 1% (base year: fiscal year 2010) reduced by 600,000 sheets. Not only does this lessen the multiple countries. But, by consolidating inventory into a environmental burden and reduce the space needed to single location, the company is streamlining its Himeji: Held forest conservation activity on April 2 (20 trees store paper documents, it also improves work eciency distribution routes and reducing CO2 emissions. When it planted, 1 hectare of forest thinned); held nature appreciation Increase the contribution that the GLORY Plant 20 trees event for employee families on October 29 and boosts productivity. GLORY’s manufacturing group comes to containerized transport, the company has Yumesaki Forest makes to biodiversity companies in Japan are adopting the same paper-saving adopted environmentally friendly transport by rail or preservation (continue botanical surveys and Thin 1 hectare of Kanto area: Held cleanup on banks of Arakawa River, Tokyo; improve management criteria) forest held forest conservation activities in Saku, Nagano Prefecture; donated building blocks made from sustainable wood to measures, and GLORY intends to spread this eort to barge (waterways)—two systems designed to handle Preservation of kindergarten biodiversity overseas production bases. large volumes of cargo. Awareness Before After Raising Himeji: Held forest conservation activity (2 employees of GLORY environmental suppliers also participated); held nature appreciation event Cooperate with stakeholders Formulate plan awareness (3 families [12 people] of GLORY suppliers also participated) to preserve biodiversity Carry out plan Kanto area: Held forest conservation activities in Nagano Prefecture (4 employees of GLORY suppliers also participated)

Conducted a questionnaire survey of overseas Develop environment-related Ascertain situation group companies action programs on a global scale Formulate plan Overseas group companies held forest conservation activities and community cleanups

Printed check sheet Digitized check sheet Containerized transport

19 GLORY CSR Report 2017 GLORY CSR Report 2017 20 Stakeholder Dialogue

GLORY communicates with stakeholders and strives for appropriate information disclosure.

Dialogue with Customers Dialogue with Business Partners Third-Party Opinion GLORY takes the opportunity to introduce the GLORY Suppliers are important partners that enable GLORY to Group’s products and services to customers in Japan and consistently manufacture high-quality products, and it is About the GLORY CSR Report 2017 Chika Saka around the world and to hold dialogues with them. vital that a system of cooperation is in place. To this end, • Commitment of Top Management Advisor to the President and GLORY has been holding annual Supplier Conferences in In the opening of the report, the President of GLORY expresses the Professor, School of Business company’s strong commitment to the United Nations (UN) Global Administration, Kwansei In February 2017, GLORY renovated its Tokyo showroom, Japan, where the company explains its current situation Gakuin University; Doctor Compact and the UN Sustainable Development Goals (SDGs). the GLORY Brand Square. Visitors to the showroom are and strategies. These conferences are also held at GLORY Member of the Science Council of Japan, given a firsthand look at GLORY’s comprehensive, Products Ltd., GLORY Denshi Kogyo (Suzhou) Ltd., and board member of the Japan Corporate Social The report explains that GLORY is in the process of identifying Accounting and Reporting Association, board high-quality solutions. The venue is divided into areas GLORY (PHILIPPINES), INC. This is part of an eort to build member of the Japan Business Analysis material issues of CSR. A desirable innovation for GLORY would be Association. Awards include Japan with themes such as Finance, Retail, and Overseas. Each relationships of trust that allow GLORY and its suppliers to build CSR policies that incorporate international frameworks— Accounting Association’s Association Award. area reproduces the latest installations and operational to share the common goal of achieving a sustainable for example, GRI, ISO 26000, and SDG targets—and to carry out premises, reduced 60% of paper usage through campaigns to scenes, while showcasing solutions that optimally match society. these policies through the company’s business activities. Clear promote paperless documentation in the Himeji Factory, and customer needs. GLORY further communicates with goal setting and careful evaluation of results will improve established a distribution center in the Netherlands to reduce CO2 customers in Japan and overseas by holding private GLORY also holds Quality Improvement Activity GLORY’s global business activities in the future. I expect that emissions. These achievements show that the company has exhibitions and by taking part in major trade shows. Workshops where suppliers present their quality GLORY will develop its business sustainably by solving social successfully enhanced its activities and systems in these fields. improvement initiatives. This event enables suppliers to problems through its business activities and by enhancing its GLORY also invites its customers to the Himeji and share information on best practices. eorts towards Creating Shared Value (CSV). As part of GLORY’s ongoing contribution to society, many of its Saitama factories, so they can see the production sites employees participate in local volunteer activities. Local residents for themselves. This gives them a deeper understanding ・ Value Chain and Special Report also participate in GLORY-sponsored activities. These eorts by the The section entitled “Major CSR Initiatives in the Value Chain” company reveal a commendable spirit of corporate citizenship. of the company’s production system and quality control. discloses new information on CO2 emissions defined in Scope 1, 2, and 3. This indicates GLORY’s commitment to achieving its goal of ・ Being a Long-Lasting Company reducing CO2 emissions and is in line with the actions of many In 2018, GLORY will celebrate its 100th anniversary. I have countries that are setting quantitative targets in the wake of the conducted research on listed companies in 140 countries around Paris Agreement adopted in December 2015. The disclosed the world. This research gathers financial data from the past 30 Supplier Conference Quality Improvement Activity Workshop information on CO2 emissions will make it possible for GLORY to years for companies that have been operating for over 100 years set and improve new key performance indicators (KPIs) that take and that have achieved sustainability. My research findings reveal Dialogue with Employees account of eco eciency. that the profit rates of long-lasting companies tend to be large GLORY Brand Square Glory Postal Solutions, a private and stable and that these companies add a large amount of value. (Tokyo showroom) exhibition (France) Since fiscal year 2012, GLORY has held meetings in which the president and other senior executives provide The Special Report outlines GLORY’s facial recognition technology They contribute to society on an ongoing basis by properly Dialogue with Shareholders and Investors updates to employees. The president explains the and provides seven examples of how this technology is contributing distributing their profits to stakeholders—a management style company’s philosophy and the state of its business. The to the development of a safer and more secure society—a concept at that emphasizes a positive relationship with stakeholders. GLORY strives to build long-term relationships of trust with the heart of the company’s corporate philosophy. goal of these meetings is to enhance employees’ sense of its shareholders and investors. To this end, the company GLORY’s management creed states that it endeavors to “coexist involvement in business management and to boost their engages them in constructive dialogue to deepen their ・ Initiatives in Governance, Quality, Human Resources, Social harmoniously with society at large.” This is borne out in the understanding of GLORY’s management policy and motivation. In fiscal year 2016, these meetings were held Contribution, and the Environment company’s management style, which values coexistence with business activities. It also works to increase management at nine locations throughout Japan. This report explains both new and continuing eorts that GLORY is stakeholders, and in the contribution to society it has been transparency through prompt, accurate, and fair making in the fields of governance, product quality, human making over the past 100 years. I am very interested in seeing information disclosure. After the fiscal year 2016 general Once a year since fiscal year 2008, GLORY has held a tour resources, social contribution, and environmental protection. In how GLORY will plan for the next century and how it will go about fiscal year 2016, the company formulated an action plan to taking large strides based on its experience in CSR—experience meeting of shareholders, GLORY hosted a tour of its new of its headquarters oces for families of employees. promote women’s participation and advancement in the that the company has diligently built up since before the term factory, which was completed in September 2015. Visitors Family members get to view the workplace, eat at the workplace, established a daycare center on the company “CSR” was created. on the tour were invited to view the factory’s company cafeteria, and meet the president. This event state-of-the-art equipment. On other occasions during the has proven popular with employees and their families, as year, GLORY held financial results briefings for institutional it gives family members a chance to see the GLORY work investors and company briefings for individual investors. environment firsthand. GLORY’s Response

The GLORY corporate website has a special section for This year GLORY once again oers its sincere these issues in our business activities; and shareholders and investors. Here, quarterly financial thanks to Professor Saka for her valuable second, use CO2 emissions data to set and raise reports, shareholder reports, annual reports, and other remarks regarding our CSR eorts. We also new KPIs that take account of environmental appreciate her complimentary words about our eciency. materials are disclosed in a timely manner for the 100 years of history. convenience of shareholders and investors. GLORY is currently in the process of identifying O ce tour for families of employees Meeting with the president at GLORY The GLORY Group upholds a corporate material issues. From the perspective of raising (PHILIPPINES), INC. philosophy of helping to realize a sustainable corporate value, we will put Professor Saka’s society through our business activities. This suggestions into concrete form, and we will year, Professor Saka has suggested we take continue our eorts in contributing to the Motozumi Miwa these two further steps: first, incorporate SDG development of a more secure society. Executive Vice President, GLORY LTD. targets into our CSR agenda and aim to solve

Factory tour for shareholders Financial results briefing for institutional investors

21 GLORY CSR Report 2017 GLORY CSR Report 2017 22 Corporate Communications Department 1-3-1 Shimoteno, Himeji, Hyogo 670-8567, Japan Phone: +81-79-294-6317 Fax: +81-79-299-6292 corporate.glory-global.com

GLORY CSR Report 2017