GLORY LTD. 1-3-1 Shimoteno, Himeji, Hyogo 670-8567, Japan Phone: +81-79-297-3131 Fax: +81-79-294-6233 http://www.glory-global.com

For further information: Corporate Communications Department Phone: +81-79-294-6317 Fax: +81-79-299-6292

GLORY CSR Report 2016

Cover: GLORY produced Japan’s first coin counter, which was recognized as a Mechanical Engineering Heritage in 2015. For more details, see Special Report 2 on pages 9 and 10 of this report. GLORY at a Glance Editorial Policy Table of Contents

Corporate name : GLORY LTD. Stock listings : Tokyo Stock Exchange (1st Section) The GLORY CSR Report 2016 aims to inform a wide range of Message from the President 3 Founded : March 1918 Number of employees : 3,244 (Group: 9,093) stakeholders about the CSR initiatives that GLORY LTD. and Note: As of March 31, 2016 Incorporated : November 1944 GLORY Group companies conducted during fiscal year 2015. Line of business : Development, manufacturing, sales, and maintenance of This report contains information in line with the Standard Capital : ¥12,892,947,600 money handling machines, data processing equipment, Disclosures of the Sustainability Reporting Guidelines, Version 4 peripheral devices, vending machines, automatic service set out by the Global Reporting Initiative (GRI). GLORY is also in equipment, etc. the process of identifying material issues in line with the relevant process defined by the GRI. Business Segments Special Report 1 outlines major CSR initiatives for each stakeholder category in the value chain. Special Report 2 Corporate Philosophy introduces the history of GLORY products. The GLORY CSR Report Customers Main Products and Goods and Management Creed 5 2016 also covers major efforts in fiscal year 2015 related to and Secure Soci environmental protection, social action, and corporate Safe ety Financial Market Open teller systems Cash monitoring cabinets Coin and banknote recyclers Security storage systems governance. Further details can be found on the GLORY website. Financial institutions, OEM for tellers Key management systems clients, and others in Japan Coin recycling modules for ATMs Philosophy Corporate Corporate Philosophy Vision Multifunctional banknote changers Management Creed

Corporate Action Medium-Term Booklet content Guidelines Management Plan

Employee Action Guidelines Annual Management Plan Employee Standards of Behavior Retail and Transportation (GLORY Spirit) Markets Supermarkets, department Coin and banknote recyclers Cash recyclers for gas stations stores, cash-in-transit Mindset Action for cashiers companies, railroad Coin-operated lockers Sales proceeds deposit machines companies, and others in Ticket vending machines Multifunctional banknote changers Japan Special Report 1 Major CSR Initiatives in the Value Chain 7 Amusement Market Card systems for pachinko parlors Membership management Banknote conveyor systems systems for pachinko parlors Covers noteworthy Amusement halls (pachinko initiatives conducted Pachinko prize dispensing machines Pachinko ball/token counters parlors) and others in Japan in fiscal year 2015. Pachinko ball counters for individual pachinko machines Web content

Overseas Market Financial institutions, Banknote recyclers for tellers Banknote counters Level of importance to stakeholders cash-in-transit companies, Banknote sorters Coin and banknote recyclers Level of importance to GLORY retail stores, casinos, OEM Banknote and check deposit Sales proceeds deposit machines modules for ATMs clients, and others overseas Coin wrappers Special Report 2 Regular efforts not GLORY Products Evolve with the Times 9 covered in the Others Tobacco shops, tobacco booklet are posted on Cigarette vending machines RFID self-checkout systems companies, hospitals, local our website, along Banknote recycling modules for for cafeterias governments, general with news and other horse race ticket vending machines Ballot sorters for handwritten detailed information. companies, and others in Medical payment kiosks ballots Japan ■ Report Subjects This report generally describes the efforts of GLORY LTD. It will be explicitly stated if a particular item being reported concerns a Financial Data (Consolidated) specific GLORY Group company or another company. Moreover, the report on environmental activities covers the ISO 14001- certified offices of GLORY LTD. and GLORY Group companies. Governance 11 Net Sales Operating Income Sales by Business Segment (Billions of yen) (Billions of yen) 250 25 Others Financial Market ■ Reporting Period Quality Initiatives 13 226.9 218.6 222.3 9.8 billion yen 51.3 billion yen Fiscal year 2015 (April 1, 2015 to March 31, 2016) 20.5 (4.4%) (22.6%) 200 190.9 20 18.6186186 (May include reporting of items occurring in or after April 2016.) Human Resource Initiatives 15 16.7 FY2015 consolidated 150 146.9 15 14.4 sales ■ Publication Date Retail and Social Initiatives 17 11.2 226.9 Transportation July 2016 100 10 billion yen Markets 38.6 billion yen (17.0%) ■ Referenced Guidelines Overseas Environmental Initiatives 19 50 5 Market Sustainability Reporting Guidelines, Version 4, Global Reporting 105.5 billion yen Amusement Market Initiative (GRI) (46.5%) 21.5 billion yen Stakeholder Dialogue 21 0 0 (9.5%) 2012 Environmental Reporting Guidelines, Ministry of the 2011 2012 2013 2014 2015 (FY)2011 2012 2013 2014 2015 (FY) Note: Figures in parentheses indicate the percentage of sales. Environment, Japan Note: From the fiscal year ended March 31, 2016, GLORY has changed its method of translating the revenue and expense accounts of overseas subsidiaries into Japanese yen. Third-Party Opinion 22 The financial figures provided for the fiscal year ended March 31, 2015 are the figures after the retrospective application.

1 GLORY CSR Report 2016 GLORY CSR Report 2016 2 Message from the President

recognition/identification and mechatronics, one of many more facets of people’s daily lives in the near our greatest strengths is the ability to respond future. promptly to customer needs. We do so through a consistent group structure that integrates every Contributing to a Sustainable and stage of the product process, including planning, Diverse Society Years of Technological Prowess development, procurement, manufacturing, sales, and maintenance. In 2014, GLORY signed the United Nations Global and the Ability to Provide Compact. We make every effort to comply with the Global Strategy, New Challenges 10 principles covering human rights, labor, the Exacting Solutions Allow environment, and anti-corruption. We believe that Looking towards our centennial in 2018, we have these 10 principles are based on the same values GLORY to Help Realize formulated the Long-Range Vision 2018 as a shared as those underlying our Corporate Action target for achieving the group vision of “GLORY as Guidelines. a Sustainable Society the world’s top brand”—that is, making ourselves As a global company, we place the utmost the world’s leading brand in our field. The final step importance on efforts that promote respect for and towards achieving this is the 2017 Medium-Term the furthering of diversity. It is our belief that in Management Plan, a three-year plan that began in order to achieve greater growth and contribute to April 2015. This plan’s basic policy is to realize society on a wider scale, many individuals of business growth through “customer-oriented differing nationalities, religions, cultures, and Hirokazu Onoe superb manufacturing” and enhance profitability to values must work together towards a common goal. President, GLORY LTD. achieve the Long-Range Vision 2018. After Our Guidelines of GLORY handbook contains our implementing the key strategies, we saw a strong corporate philosophy, Corporate Action Guidelines, business performance in Japan and worldwide for and other information. Produced in eight different fiscal year 2015, the first year of the plan. As we languages, this handbook has been distributed to approach GLORY’s 100th anniversary, fiscal year all of our worldwide employees. Manufacturing for People and the 2016 will be crucial as the second year of the plan. Guided by our corporate philosophy, we will Unifying Force of Our DNA The GLORY Group does business in over 100 continue to earn the trust of our stakeholders and countries, conducting locally geared strategies strive to be a corporate group contributing to the Founded in 1918 with just seven employees, GLORY trial and error led to the successful completion of based on meticulous analysis of the various needs realization of a sustainable society. began as a factory for repairing light-bulb Japan’s first coin counter in 1950. and challenges in each country and region. We also manufacturing devices. As our work consisted of This coin counter was our first step as a pioneer leverage proprietary technologies and know-how June 2016 irregular repair and subcontracting jobs, the in the money handling machine business. Over the built up in Japan to provide customers with high business was not very stable in the beginning. years, GLORY has released a string of first-in-Japan accuracy and efficiency in value-added products Nevertheless, our founders were determined to one products, such as coin wrappers, coin sorters, and solutions. day have the company’s name on its own products. cigarette vending machines, and coin-operated In pursuing this global strategy, GLORY is The rest is history. Today, GLORY can look back on lockers with extendable time limits. Our corporate striving aggressively to create new value in fields having overcome many development challenges philosophy, “We will contribute to the development beyond money handling machines. One focus will over the years. of a more secure society through a striving spirit be the increasingly important market for security A major turning point came when the Ministry of and cooperative efforts,” encompasses our stance products. Here, we are applying our existing core Finance’s Mint Bureau (known today as the Japan of continuously striving to benefit people by technologies and conducting research that is Mint) asked us to develop a coin counter. Until that creating products that have never been seen advancing new technologies such as facial time, the Mint Bureau had been using imported before. This perspective has been handed down recognition. Facial recognition has already been machines that were bulky and difficult to operate through generations and remains an integral part successfully applied to commercially viable keyless and maintain. Despite having no previous of our corporate culture and DNA. room entry systems for hotels. This technology experience in this field, we immediately accepted This corporate culture provides the basis for offers convenience and safety, and it boasts the the challenge. After all, it was an opportunity to the continued expansion of our business. In industry’s highest level of facial recognition open new doors to product development. Months of addition to our core proprietary technologies in accuracy. We expect to see it incorporated into

3 GLORY CSR Report 2016 GLORY CSR Report 2016 4 Corporate Philosophy and Management Creed GLORY’s CSR Philosophy

GLORY’s corporate philosophy, which represents our corporate goal and raison d’être, is: GLORY believes that corporate social responsibility (CSR) is achieved by putting its “We will contribute to the development of a more secure society through a striving spirit and corporate philosophy into practice. This means offering money handling machines cooperative efforts.” These words express our determination to achieve growth as a and other products and services of high social importance to respond to customers’ sustainable enterprise by contributing to a prosperous society through our uncompromising needs for efficiency and accuracy and thus contribute to the realization of a safe and approach to product development. This philosophy guides our efforts to continuously improve secure society. our corporate value through sound and efficient business management, so that we can exist in harmony with society and earn the trust and support of all stakeholders. d Secure S Safe an ociety Corporate Philosophy

We will contribute to the development of a more secure society through a striving spirit and cooperative efforts.

Management Creed Philosophy Corporate Corporate • Through a spirit of continuous development, we will provide products and Philosophy Vision services our customers can rely on. Management Creed • We will build a vigorous corporate group through respect for the individual and Corporate Action Medium-Term Guidelines Management Plan teamwork. • We will endeavor to act as a responsible corporate citizen and coexist Employee Action Guidelines Annual Management Plan harmoniously with society at large. Employee Standards of Behavior (GLORY Spirit)

Mindset Action 2017 Medium-Term Management Plan Corporate Philosophy Structure Business Management Structure Basic Policy Realize business growth through “customer-oriented superb manufacturing” and enhance profitability to achieve the Long-Range Vision 2018 CSR Promotion Framework CSR Education

CSR efforts in the GLORY Group are led by the CSR Committee, Every employee in the GLORY Group receives a copy of the which is chaired by the President and made up of management- Guidelines of GLORY handbook, which contains information such Business Strategy Constitutional Strategy Corporate Management Strategy level employees. The committee convenes twice a year, at which as the corporate philosophy, management creed, and the time it deliberates on the basic direction and plans for CSR Corporate Action Guidelines. The handbook is available in eight management and establishes policies for major annual CSR different language versions to ensure that employees around the Enhance profitability by Provide timely products Basic Reinforce group initiatives. world have the shared understanding needed to realize GLORY’s expanding business and services meeting Strategy management infrastructure corporate philosophy. They can also take CSR training through size/area market needs an e-learning program.

Representative Director • Group governance • Product development • Domestic business • Human resources CSR Committee Focus • Production/Procurement • Overseas business • Capital/Financing Secretariat • Quality assurance (Corporate Communications Department) • Information systems Department Managers

Guidelines of Employees GLORY handbook

5 GLORY CSR Report 2016 GLORY CSR Report 2016 6 Special Major CSR Initiatives in the Value Chain Report 1 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

GLORY’s mission is to continuously The prime objective at GLORY is to The top priority of the procurement GLORY strives to deliver high-quality GLORY places the utmost importance The maintenance division has a develop products and solutions that develop new products that customers division is maintaining a stable supply products in a timely manner. With the on communication with customers. thorough support system that satisfy its customers’ needs. The can depend on. While ensuring the chain. GLORY complies with all Himeji Factory—the main factory—in Based on an analysis of the exact constantly provides prompt, exacting, Value Chain Value product planning division keeps its quality and timely release of products, applicable laws and carries out fair the central role, GLORY has built an needs of each market and customer, and sincere service to ensure that ears tuned to customer requests and GLORY strives also to develop new and open purchasing in an effort to optimized manufacturing system in GLORY strives to provide in a timely customers can use GLORY products strives to reflect these in future products with ever-greater customer progress in unison with business which each of the company’s factories manner high-value-added products with peace of mind. It also constantly products by working with the usability and environmental partners and ensure CSR-oriented in Japan and overseas contributes its and services that, for example, achieve adds new services with the aim of development division—the next step in performance. procurement throughout the entire own particular strengths. ever-greater efficiency and accuracy in raising customer satisfaction. bringing products to market. supply chain. the business of handling cash.

Customers Customers Customers Customers Customers Customers

• Create new value and solutions • Develop products that match • Ensure quality and pursue • Ensure quality and stable supply • Provide products that match • Provide prompt, reliable customer needs in a timely manner appropriate, competitive pricing customer needs in a timely manner maintenance • Plan products that match customer • Shorten lead-time needs • Ensure quality • Provide appropriate information on • Improve maintenance quality • Boost cost competitiveness through customer focus • Incorporate universal design Business partners products and services Customers Global environment • Properly manage customer • Properly manage customer • Develop products utilizing new • Promote CSR-oriented information and personal technologies Global environment information and personal procurement in unison with information information • Plan environmentally friendly suppliers products • Manufacture with an eye to saving Customers Global environment • Strengthen partnerships with resources, recycling, and reusing suppliers Customers Global environment Global environment Global environment • Develop environmentally friendly • Respect human rights in the products Local communities • Sell environmentally friendly • Switch to eco-cars supply chain products • Map out the product lifecycle • Sell CFC-free cleaning goods • Ensure safety in the vicinity of each Employees Global environment plant Employees Employees • Promote a work-life balance • Promote green procurement Employees • Provide education to improve • Protect biodiversity • Promote a work-life balance • Promote a work-life balance employee skills • Train employees based on • Respect human rights and ensure qualification systems

Major Initiatives for Each Stakeholder Major Initiatives for Each Stakeholder occupational health and safety

Kouichi Kei Yuki Yayoi Daisuke Minoru Nishida Itsushiki Matsui Nakatani Teranishi Tanaka Product Planning Switzerland Office, Purchasing Electrical Parts Sales Department 2, Kumamoto Local Office, Department, Development Division 1, Procurement Assembling Retail Market Sales Kyushu Regional Office, International Business Development Department, Department, Division, Service Headquarters Headquarters Headquarters Purchasing Division, Himeji Factory, Domestic Business Production Production Headquarters Headquarters Headquarters

GLORY’s coin and banknote recyclers To answer the question “what does I am involved in purchasing mounting We are in charge of designing printed I am a salesperson working with POS My greatest joy is to hear our streamline the cash settlement quality mean to customers?” I try to boards and harnesses from circuit boards according to the circuit manufacturers and in markets that customers say “thank you.” operation in overseas retail stores, understand the difference in values international suppliers. These diagrams and specifications developed still have a low POS penetration rate, As technical staff, we believe it is allowing customers to pay for goods from region to region and from market electrical components are used in by the development division. The goal mainly dealing in coin and banknote our mission to ensure that customers and receive the change themselves. to market. My ability to do this has a sales proceeds deposit machines that is to provide customers with truly recyclers for cashiers. I relay opinions can use GLORY products with peace of

Voices Take, for example, a business such as huge impact on the quality of the final we market in Japan and overseas. satisfying products. Besides meeting and requests from customers to the mind and that we provide them with a bakery in France. Staff at the bakery, product. Customers want high-quality Whether the suppliers are in Japan or delivery deadlines, we must ensure planning and development divisions satisfying service. Besides constantly who regularly touch bread and pastries products. I believe that by putting overseas, we communicate closely that our designs do not result in any with the goal of providing customers improving our product knowledge and with their hands no longer need to myself in the customer’s shoes, I can with them so that they fully understand defective products during the production with optimized solutions that meet maintenance skills, we always put handle any cash. The bakery can offer understand the best way to use GLORY’s procurement philosophy with stage. To this end, we strive to raise their business needs. ourselves in the customers’ shoes. We their products in a more hygienic technologies to solve their problems. regard to issues such as human rights quality through constant cooperation If a problem arises after product also strive to train new members of manner giving peace of mind to their This allows me to provide customers and legal compliance. We also with the development and production delivery, I immediately contact the the maintenance team to the highest customers. with highly satisfactory products. cooperate with them to ensure a stable divisions. relevant company division to solve the level. We will continue to develop products procurement of parts. issue, so that customers are always that match the specific needs of able to use our products with peace of customers around the world. mind.

7 GLORY CSR Report 2016 GLORY CSR Report 2016 8 Special GLORY Products Evolve with the Times Report 2 With changing times come changing needs to which GLORY has continued to respond with products offering ever-expanding possibilities. 1950s 1960s–1970s 1980s–1990s 2000s Onward

The post-war reconstruction of Japan and its economic The period from the early 1960s to the early 1970s saw a The mid-1980s to the early 1990s saw Japan go on a At the start of the 21st century, Japan entered an era of recovery proceeded at a pace that startled the world. By string of major events in Japan that symbolized the high-profile worldwide spending spree that put it in the falling birthrates and an aging population. This brought the 1955, Japan’s GNP had already surpassed pre-war levels, country’s transition to a major economic power, including global spotlight, for better or worse. After the collapse of country face to face with problems such as inequality and and in 1956 a government economic white paper the 1964 Tokyo Olympics, the inauguration of the Tokaido Japan’s bubble economy in 1991, Japan went through a long labor shortages caused by a decreasing work-age proclaimed the end of the post-war era—a phrase that Shinkansen bullet train, and Expo ’70 in Osaka. period of economic stagnation called “the lost decade” or population. Amid the spread of the Internet, ongoing struck a chord with the Japanese people. The standard of living was rising, and Japanese people worse, “the lost 20 years.” This was also when the Cold War globalization, and dizzying changes in the state of the world, began to think of themselves as middle class. However, the was coming to an end and the world was undergoing it was called into question how people and organizations Japan’s First Coin Counter Certified oil crisis in 1973 marked the end of this phase of Japan’s economic globalization against the background of the birth should make their presence felt while respecting a As a Mechanical Engineering Heritage* in 2015 unprecedented economic growth. of the EU and rapid advances in transportation and IT. diversifying range of values. GLORY developed the first coin counter made in Japan. The product has been recognized as a historically significant product, owing to its contribution to saving labor and boosting reliability in CP Series coin counter the field of cash handling. * The Mechanical Engineering Heritage is a list of historically significant mechanically related heritage items recognized and compiled by the Japan Society of Mechanical Engineers (JSME).

機 械 遺 産 Mechanical Engineering Heritage

ADDS open teller system

RBG-200 banknote recycler for tellers

PB-2 cash deposit and withdrawal USF-50 Series banknote sorting machine control system RT-1 coin and banknote Japan’s first coin counter GNE banknote counter recycler for cashiers

The Curtain Opens on GLORY-Made Products Period of Growth and Development New Products Drive Business Expansion Global Business Expansion Japan’s First Coin Counter From Single-Function Machines to Multifunction Solutions Core Technologies Key to New Challenges Japanese Technology for the World

Japan was in the midst of a shipbuilding boom in 1949, and During what was hailed as Japan’s period of rapid economic GLORY was expanding business and building up its The GLORY Group currently conducts direct sales and GLORY* was subcontracted to manufacture ship parts. growth, GLORY was also growing. In the 1960s, the company technologies. Starting with coin counters, the company maintenance in more than 20 countries, and GLORY products Although the company’s factory was operating at full capacity, developed products such as coin wrappers and coin sorters. It developed numerous products in the coin and banknote are at work in more than 100 countries. Banknote recyclers for orders ended up falling drastically. It was at that time that also began development of banknote handling machines, as it handling field. In 1986, GLORY became the first in the industry tellers are being marketed to financial institutions around the GLORY was approached by the Mint Bureau (known today as built on its foundation as a comprehensive manufacturer of to develop a teller machine, the open teller system, for sales world. These machines deliver a range of benefits: security is the Japan Mint) about making a coin counter. GLORY’s then money handling machines. The development of other products offices in financial institutions. GLORY went on to develop other enhanced by having cash stored in a safe; counterfeit detection president, Jusaku Onoe, had always believed that the company such as coin wrappers and banknote counters for export products that met the needs of financial institutions, which is improved through sophisticated currency authentication; should break out of its limited role as a manufacturing marked the beginning of a new business path to overseas diversified in response to a changing society and to requests and cash management processes are optimized. Not only do subcontractor and develop its own products. He saw this as markets. for improved efficiency in work processes and use of capital. banknote recyclers for tellers speed up customer the perfect opportunity to realize this dream. After much trial In the 1970s, GLORY made the transition from In 1992, GLORY targeted the distribution market with the transactions, they also reduce the number of intra-day vault and error, GLORY successfully built Japan’s first coin counter single-function machines to multifunction solutions, in the release of the industry’s first coin and banknote recycler, buy and sells. Furthermore, they reduce the time taken to in 1950 and delivered it to the Mint Bureau. process contributing to automation and labor savings for which automatically gave coin change during cash balance a branch’s cash holdings at the start and end of the The development of this coin counter marked GLORY’s companies in the financial and distribution industries. It transactions. This product proved to be a huge hit, thanks to day. All this means that banks can optimize their costs and beginnings as a manufacturer of money handling machines. anticipated customer needs with a succession of products its ability to dramatically improve the efficiency of cashier offer their customers a better experience. The centrifugal force technology employed in this machine to including cash deposit and withdrawal control systems and payment transactions. For emerging economies where large numbers of relay the coins one at a time during the counting process is multifunctional banknote changers. These state-of-the-art In addition, GLORY’s recognition/identification banknotes are in circulation, GLORY has developed products still used today on money handling machines. developments allowed GLORY to achieve steady progress even technologies—core technologies built up through the such as a banknote sorting machine that effectively assesses in the midst of the post-oil-crisis development of money handling machines—evolved to the the authenticity and quality of cash and that also records serial * Before 1971, GLORY LTD. was known as Kokuei Machinery Manufacturing. point where they could identify things like personal seals and numbers. These and other products improve the reliability of handwriting. This opened up further business opportunities. currency and make for accurate management of banknotes in circulation. GLORY will continue to advance its core technologies in order to contribute to the security of the world’s currencies as well as to the continuing betterment of society.

9 GLORY CSR Report 2016 GLORY CSR Report 2016 10 For details, please visit GLORY’s website. Governance http://www.glory-global.com/groupinfo/governance/

Based on its corporate philosophy, GLORY is pursuing sound and efficient business management that earns the trust and support of all stakeholders.

Corporate Governance Compliance

GLORY’s corporate philosophy guides its efforts to Corporate Governance Guidelines GLORY has a Compliance Committee as one way to maintain problems at an early stage, while protecting those seeking continuously improve corporate value through sound and To ensure sustainable growth of the GLORY Group and to and improve its compliance framework. This committee— consultations. efficient business management, so that the company can boost corporate value over the medium and long terms, which is chaired by the President and which includes two In addition, GLORY provides education to employees to exist in harmony with society and earn the trust and GLORY formulated the Corporate Governance Guidelines in outside experts (attorneys at law)—deliberates on thoroughly familiarize them with compliance. In fiscal year support of all stakeholders. None of this can be achieved February 2016. The company is pushing forward with important compliance-related issues. GLORY also has in 2015, GLORY held group training sessions for managers and without a firm commitment to the continuing improvement business management in line with these guidelines and is place four compliance helplines (including one outside staff members in the development divisions to ensure of corporate governance. GLORY will continue its efforts to striving to further strengthen its governance system. helpline) available to all GLORY Group employees in Japan. thorough control of critical information. strengthen the supervisory and executive functions of These helplines enable GLORY to detect and correct management, accelerate decision-making, ensure transparency and objectivity, and enhance compliance Risk Management management. Risk Management Framework Message from Outside Directors Corporate Governance Framework GLORY has a Risk Management Committee, which is chaired GLORY adopts an audit and supervisory board system. This by the President. This committee determines the divisions Hiroki Sasaki Akira Niijima means the company’s Board of Directors, which includes and individuals responsible for each risk item specified in Outside Director Outside Director two outside directors, makes decisions on important the Risk Management Manual. It implements precautionary Appointed outside director in Appointed outside director in matters and oversees business execution, while the Board measures against risks during normal times and securely June 2008 June 2008 of Corporate Auditors oversees the actions of the Board of maintains a system that can respond promptly in times of Chairman, Nomination Advisory Member, Nomination Advisory Committee Committee Directors. An executive officer system allows the company crisis. Through such measures, the committee oversees Chairman, Compensation Member, Compensation to separate the management supervisory and business risk management for the entire GLORY Group. Advisory Committee Advisory Committee executive functions, thereby enabling speedy and efficient In fiscal year 2015, in response to recent global business business administration. In addition, committees such as expansion, GLORY focused on strengthening risk On hearing the phrase “corporate governance,” one would “Corporate governance” may seem like a rather formal or the Nomination Advisory Committee and the Compensation management for the entire group, including overseas conventionally think of a defensive process such as preventing abstract phrase, but I think it essentially boils down to Advisory Committee serve to boost transparency and subsidiaries. It focused also on implementing validations to corporate scandals. Nowadays, companies need to strike a “communication.” balance between defense and offense. By “offense” I mean Companies in pursuit of raising corporate value must objectivity when making important management decisions. ensure the viability of business continuity plans (BCPs). taking an aggressive stance toward continuously boosting conduct business that takes into account not only their own corporate value and fulfilling social responsibility, in order to profit, but also the relationships they have with various grow further as a global company. To make this point clear, stakeholders. By “communication,” I mean the way that Corporate Governance Framework (As of April 1, 2016) GLORY formulated the Corporate Governance Guidelines in management relates to stakeholders and how this can have an General Meeting of Shareholders February 2016. Once all board members share a common effect on management. But this applies to all workplaces. When understanding of these guidelines and the values within them, there are effective lines of communication in place, individuals Appointment/ Appointment/ Appointment/Removal Removal Removal there remain two duties we outside directors must perform. can act on their own initiative, exchange their views openly, and The first is to determine how GLORY can increase the viability achieve results. If senior management regularly works to foster Board of Directors Board of Corporate Auditors of its policies and measures, and the second is to assess the an environment conducive to such open communication, 4 Corporate Auditors 9 Directors (including 2 Outside Directors; 1-year term) Operational (including 2 outside concrete methods required to achieve those ends. policies can be communicated smoothly down the line. audit Corporate Auditors) The key to raising corporate value on an ongoing basis lies The GLORY Group has a very open corporate atmosphere. Representative Directors (2) in how well we can carry out our medium-to-long-term My hope is that they further enhance this positive environment Examination/ management plan. This plan embodies a strong commitment to and take on the challenge of continuously bringing forth Reporting Accounting Auditors shareholders and all other stakeholders. It calls for the utmost products that contribute to the betterment of society, with an Examination Accounting Nomination Advisory Compensation Advisory audit effort aimed at achieving the plan’s objectives, and it requires unyielding spirit embedded in the company DNA. Committee Committee Advice/Direction that we confirm the progress being made and implement In 2012, GLORY acquired Talaris Topco Limited, a UK measures as necessary. The results are to be disclosed in a company. This makes it even more imperative that we transparent manner in and outside the company, and we must communicate with a global perspective. Once we are able to Risk Management Committee Management Conference Corporate Lawyers strive to gain the understanding of stakeholders. All this is to be establish a network of communication around the globe and Directors, Corporate Auditors, reflected in future management plans. I want to stress that it is speed up our decision-making, we will be able to become a Disclosure Committee Executive Officers, and others Advice/ Outside Consultants exactly this kind of company—one that can do all of these global corporation with a more powerful competitive edge. Direction Internal things in an ongoing manner—that will be able to grow As an outside director, I would like to keep these thoughts Compliance Committee Business Promotion Conference Audit Executive Officers Executive Department sustainably and boost corporate value. in mind as I put my efforts into helping raise the corporate Audit GLORY has responded to changing times and has steadily value of GLORY. 4 compliance helplines put into action governance-related improvements. We have also responded to the expectations of our stakeholders and the trust they have in us as we expand our business. Global Development Manufacturing Sales Maintenance Administrative divisions divisions divisions divisions divisions competition is becoming ever more intense, but I consider this a golden opportunity for the GLORY Group to renew itself. I will Group companies do my best to contribute in any way.

11 GLORY CSR Report 2016 GLORY CSR Report 2016 12 For details, please visit GLORY’s website. Quality Initiatives Quality policy: http://www.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 Customer Response and Support GLORY established its Quality Policy in April 1994. Based on three priority guidelines, the company strives for uniform quality Call Centers in Tokyo and Osaka across all manufacturing bases in Japan and overseas. GLORY implements thorough quality control activities in all stages of its business operations—product planning, development, procurement, manufacturing, sales, and maintenance—so that it can GLORY upholds a policy of FAST—“fast, accurate, sincerity, centers at all times. Problems are solved quickly by utilizing respond to customer needs and develop reliable products and services. and think”—for its maintenance services. The company a proprietary error search system and a technical staff (TS) All production-related group companies and plants, including the Himeji Factory and the Saitama Factory, have obtained ISO strives to provide customers peace of mind, confidence, and mapping function. If a maintenance visit is necessary, the 9001 certification. These facilities all have in place a quality assurance system in line with this international standard for quality satisfaction by always thinking about how to provide service call center relays the inquiry to the maintenance backup management. that is fast, accurate, and delivered with sincerity. staff, following which technical staff members are All inquiries from customers in Japan related to GLORY dispatched to the site. GLORY has roughly 1,000 technical products and systems—such as how to operate a product, staff members deployed around the country. In this way, Quality Policy troubleshooting, and requests for repairs—are handled at GLORY has in place a reliable support system for We will provide products and services in a timely manner to win the confidence and call centers run directly by GLORY in Tokyo and Osaka. addressing customer problems as quickly as possible. satisfaction of customers. Approximately 100 operators are on stand-by at the call China Three Priority Guidelines Saitama 1 By sensing market needs in advance, develop products that are valuable to customers. Himeji Call center Error search system TS mapping 2 Establish the quality of products from the earliest stage possible. Philippines 3 Place importance on customers’ first impression of quality and on after-sales services. Answer call within three rings work together and High-Quality Overseas Manufacturing communicate closely Customer GLORY has set up a global production system that enables with local personnel the company to manufacture products at the optimal to establish a PC screen displays customer’s product location. To do so, the company takes into account factors production method model, so troubleshooting can be done such as the procurement methods for parts and materials, suited to that from a customer’s perspective. Confirm current location of technical staff members and their schedule for the day and the production methods, and the workforce in each country particular base. Once inform customer of the exact time of their arrival. and region where it does business. full-scale production Quality audit by the quality assurance division Countries around the world have different cultures and is underway, GLORY market environments. That is why GLORY takes different strives to maintain consistent quality by keeping a precise approaches at its production bases in the Philippines and count of parts, conducting inspections even more stringent Boosting Customer Response Skills Call Center Tours China. These bases do not simply copy the production than those in Japan, and other methods. The Himeji The call centers are making an effort to boost their GLORY actively offers customers the opportunity to tour the system used in Japan. Rather, they adopt a system that Factory’s quality assurance division visits overseas capability to respond to customer inquiries and provide call centers. An explanation of GLORY’s entire after-sales makes the most of local production characteristics, while factories and regularly conducts quality audits in order to support so that GLORY can offer faster and more accurate support system helps to deepen customers’ understanding striving for the same level of quality as in Japan. Overseas secure high quality. service. of the company’s after-sales service so that they can use production bases also communicate closely with GLORY’s Operators who first handle incoming customer calls are GLORY products with peace of mind. In fiscal year 2015, main factory—the Himeji Factory—to share information on Quality-Focused Human Resource Development given customized training that matches their individual skills. customers from 79 companies visited the call centers. quality and good practices in a timely manner. Such efforts GLORY educates employees in Japan and overseas so that it This helps to ensure smooth communication with customers. enable GLORY to establish a system for ensuring consistent can produce high-quality products at all of its bases. quality on a global scale. Employees of GLORY (PHILIPPINES), INC. have been receiving training at the Himeji Factory in Japan since 2000. Ensuring Quality in the Production Trainees spend a year learning about production and Inspection Processes techniques, methods to improve quality, and Japanese My Service Quality Group is committed to trouble with their products. We place the The optimal production location for GLORY products is culture and customs. After returning to their home country, standardizing call center operations and utmost priority on putting ourselves in the determined at the product planning stage. Once an overseas they apply what they have learned to their workplaces and improving service quality. Each call center customer’s shoes when handling inquiries. We base has been act as team leaders. holds regular training sessions to boost value a sense of omotenashi service. This way, designated for In fiscal year 2015, response skills. By sharing videos of the when we solve a customer’s problem, they can production, all four employees training, our call centers are able to provide feel happy about using GLORY products. relevant GLORY came to study in the same high level of service. I will do my best to keep on providing divisions—including Japan. A total of 76 Ayako Yoshida The call centers receive inquiries from service that will boost customers’ peace of production, people so far have Service Support Department, customers who are having some kind of mind and satisfaction. Call Center, development, and undergone this GLORY Techno 24 Co., Ltd. quality assurance— training. Stringent parts count A trainee learns how to mount a part

13 GLORY CSR Report 2016 GLORY CSR Report 2016 14 For details, please visit GLORY’s website. Human Resource Initiatives http://www.glory-global.com/csr/stakeholder/employee.html

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

Fostering Human Resources ● Overseas Trainee Program Promoting Diversity Work-Life Balance This program sends Japanese GLORY employees to an Fostering Globally Minded Human Resources overseas Group company for one year of on-the-job training GLORY aims to build a workplace where every employee, GLORY has in place numerous initiatives aimed at By acquiring UK company Talaris in 2012, GLORY aimed at giving them the experience and skills to represent regardless of gender, nationality, sexual orientation, or promoting a work-life balance. These initiatives enable significantly increased both its overseas sales and its GLORY on the world stage. disability, can utilize his or her talents to the fullest. employees to match their job and work schedule to their employee base. Today, overseas sales account for By the end of lifestyle while maximizing their abilities and career approximately 47% of GLORY Group consolidated net sales, fiscal year 2015, a Equal Opportunities for Women potential. and overseas employees account for approximately 39% of total of 19 GLORY Since fiscal year 2011, GLORY has been focusing on all Group employees. Given this new group make-up, the employees from the delivering equal opportunities for female employees. Work-Life Balance Support Systems company is placing special emphasis on fostering human development, sales, Women accounted for 12.5% of all GLORY employees as of Employees can take advantage of systems that allow them resources that can support international expansion. It is and other divisions the end of fiscal year 2015. In fiscal year 2016, with the to place equal importance on raising children and doing bringing this objective about through programs such as the had taken part in this enactment of Japan’s Act on Promotion of Women’s their jobs. For example, they can shorten their working Short-Term Overseas Study Program and the Overseas program. Participation and Advancement in the Workplace, GLORY hours (in 30-minute blocks) to give themselves more time to Training at Glory Global Solutions Ltd. (UK) Trainee Program. launched a company-wide action plan with two initiatives: spend raising their children. This system can be used until GLORY also provides as many opportunities as possible first, to have 20% of new graduate hires in the next three employees’ children finish third grade at elementary school. for exchanges years be women; and second, over the next five years, to between employees in New Career-Building Initiatives double the number of female managers (i.e., those at the Reducing Long Hours of Work Japan and those at In fiscal year 2014, GLORY conducted an employee rank of section manager or higher). GLORY strives to modify work processes and schedules in overseas subsidiaries. awareness survey to determine the level of employee order to reduce constant bouts of long work hours. This motivation and the degree of permeation of the corporate ● GLORY Women’s College helps to bolster employees’ mental and physical well-being philosophy. Since fiscal year 2012, the GLORY Women’s College has and maintain their motivation for work. In fiscal year 2015, the results of this survey were given aimed to help women feel more enthusiastic about their In fiscal year 2015, in an effort to impress upon

Japan Meeting 2016 to employees and incorporated into human resource jobs and it has fostered female candidates for managerial employees the importance of working efficiently so as to measures and personnel systems. The company positions. The year-round classes raise awareness about avoid overtime, GLORY increased the number of weekly subsequently launched new initiatives, such as career career advancement “no-overtime days” to two days: Wednesday and Friday. And ■ Overseas sales rate, number of overseas employees interviews and the Leadership Challenge Program. for women. Each to get employees home early, each GLORY division has its Overseas sales rate Total Group employees year, 10 women are own rules regarding when work finishes and when to turn (Persons) （％） 10,000 Overseas employees 100 ● Career Interviews selected for this out the office lights each day. 9,003 9,002 9,008 9,093 In fiscal year 2015, GLORY introduced a human resource course, and 40 have database system to properly catalog the knowledge and so far graduated 7,500 75 77,076,076 skills that employees have garnered throughout their from it. careers. This data provides the basis for career interviews Respecting Human Rights A class in the GLORY Women’s College 5,000 47.1 46.9 46.5 50 between bosses and subordinates and makes it easier to All employees must abide by GLORY’s Corporate Action 39.6 chart a career path for employees. The ultimate goal of the Guidelines. These stipulate rules on respect for individuals, 3,267 3,280 3,336 3,506 2,500 24.0 25 interviews is to foster self-sufficient employees who have a Employing People with Disabilities talent development, and workplace safety. They also clearly clear vision of their future career and who can use their In 1999, GLORY Friendly Co., Ltd. was established to give call for respect for other employees’ diversity, personalities, 1,373 abilities to the fullest to achieve their goals. people with disabilities an opportunity to make a living and individual differences, and—above all—human rights. To 0 0 contribute to society. Under the slogan “Foster a creative ensure that these efforts extend beyond the GLORY Group 20112012 2013 2014 2015 (FY) ● Leadership Challenge Program working environment by valuing communication with one and throughout the entire supply chain, the company has This program for upper-level full-time employees aims to another and fully demonstrating our skills,” employees produced the GLORY CSR Procurement Guidebook (for ● Short-Term Overseas Study Program identify and foster future managers and strengthen their conduct duties such as company janitorial work and suppliers in Japan) and the GLORY Supplier Code of Conduct This program sends Japanese GLORY employees mainly to management capabilities. The program helps participants landscaping, in-house documentation and mail delivery, and (for overseas suppliers). These documents outline rules on the US or the UK for three months to study English and acquire an understanding of the roles of a leader and the waste disposal. As of respect for human rights that all suppliers are urged to acquire practical business skills. Through their exposure to communication skills necessary to effectively manage the end of fiscal year follow. new cultures, different values, and diverse ways of thinking, people. It allows them to create blueprints for the type of 2015, employees with The GLORY Group has signed and participates in the participants improve leader they want to disabilities accounted United Nations Global Compact, which advocates universal their foreign language become and to modify for 2.26% of all principles covering the four areas of human rights, labor, abilities and learn to their behavior GLORY Group the environment, and anti-corruption. The Group will take a global accordingly. In fiscal employees. continue to make respect for human rights a cornerstone of perspective. In fiscal year 2015, 64 its management. GLORY Friendly employees cleaning up a local park year 2015, five GLORY employees took part employees took part in this program. in this program. GLORY employees at an English language school Taking part in the Leadership Challenge Program

15 GLORY CSR Report 2016 GLORY CSR Report 2016 16 For details, please visit GLORY’s website. Social Initiatives http://www.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 Other Contributions to Society Through Business Activities Cosponsoring the World Heritage Himeji Castle Participating in the Table for Two Program GLORY Cosponsors Expo Milano 2015 Japan Pavilion ● Hands-on Science Classes Marathon 2016 Since 2011, GLORY has had a special menu in its From May to October 2015, Expo Milano 2015 was held Children work together with GLORY employees and build GLORY was a cosponsor of the World Heritage Himeji Castle headquarters cafeteria in support of the Table for Two (TFT) under the theme, “Feeding the Planet, Energy for Life.” their own science projects, experiencing firsthand the Marathon 2016 held in February. Fifty GLORY employees program run by NPO Table for Two International. It is said On request from the Japan Pavilion, GLORY provided a wonders of science and in the process cultivating their volunteered on race day to assist the approximately 6,000 that about one billion people worldwide suffer from hunger smart management system for its Japanese restaurant. creativity and unique powers of imagination. participants running the full marathon. and malnutrition, while another one billion suffer from Thanks to GLORY’s contributions, which included the back In fiscal year 2015 A number of GLORY obesity. The TFT program aims to address this imbalance office system and the ticket vending machines that science classes, 200 employees also took part in by offering cafeteria patrons healthy meals that prevent accelerated ordering and students from grades three the race itself, making a lifestyle diseases, while at the same time donating part of payment for the pavilion’s to six tried building their spirited effort to reach the the price of each meal to provide school meals in many visitors, the restaurant own “Cam-Cam Cars” that finish line. developing countries (Uganda, Rwanda, Malawi, and was able to operate applied the principles of the Ethiopia). This program is popular among employees, since

smoothly and successfully. cam mechanism. Students making GLORY volunteers cheering on it provides an easy way to make a difference in the world. Cam-Cam Cars the runners In fiscal year 2015, 18,570 school lunches were provided

Ticket vending machine accepting both as a result of GLORY’s TFT euro and yen currencies A finished Cam-Cam Car program, bringing the total Lending Products to the Okinawa Prefectural Making Building Blocks from Sustainable Wood since 2011 to 57,566 school Police Department ● Children’s Theater With the goal of protecting the environment and lunches. In order to obtain a cash counter to count money The Children’s Theater project is held with the goal of contributing to children’s education, 63 employees of confiscated in criminal cases, the Okinawa Prefectural enriching the aesthetic sensibilities of youngsters and GLORY’s Saitama Factory used sustainable wood (wood planting in them the seeds of creativity. from forest thinning) to make children’s building blocks. Police Department consulted with the Bank of the Ryukyus, The TFT menu changes on a daily basis which in turn contacted GLORY. The company subsequently In fiscal year 2015, 3,000 This activity was conducted with the support of the Lifestyle lent the Okinawa Police two banknote counters and five coin elementary school students Research Institute of Forests counters. In August 2015, GLORY received a letter from the and their parents attended NPO. Participants Bone Marrow Donor Registration Days police thanking the performances of the musical painstakingly sanded and The Cat Who Wished to Be a company for promptly polished each building block In October 2015, donor registration days for the German Man providing the products, , presented by the Shiki and donated the 400 finished Bone Marrow Donor Center (DKMS) took place at Glory creating special instruction Theater Company. Children enjoying the musical pieces to a local Global Solutions (Germany) kindergarten. GmbH. In keeping with the manuals for the police, and GLORY employees making building helping with delivery. blocks for donation motto, “Save a life,” over 30 employees participated in The letter of appreciation from the Okinawa Prefectural Police Department ● Hands-on Classes for Parents and Children the campaign and had This program is held every spring and autumn with the goal Supporting Education in the Philippines themselves tissue typed.

of strengthening the bonds between parents and children In August 2015, the Technological University of the At a bone marrow donor through a range of fun and exciting experiences. Philippines held a career symposium at which a GLORY registration day Fostering the Next Generation In May 2015, 93 children (PHILIPPINES), INC. employee who had graduated from the GLORY Foundation for Elementary School and parents were selected university gave a career-themed talk to environmental Students by lottery to watch the Shiki science majors. Supporting Children of the Sahara Desert In March 1995, GLORY established the GLORY Foundation for Theater Company’s The aim of the symposium is to give third-year students Employees of Glory Global Solutions (Spain) S.A. and other The Lion Elementary School Students with the goal of supporting the performance of a deeper understanding of what to expect after graduation. companies in the Glory Global Solutions Group in seven King sound development of young people. Through the and take a backstage To this end, university alumni now working in the countries gathered items that they donated to children of The Lion King foundation, the company conducts sports, arts, and cultural tour. Later that year, in Before watching environmental protection field give talks on the knowledge nomadic tribes living in the Sahara Desert. Items included activities that have included hands-on science classes, November, a hot-air balloon and experience they have bicycles, clothing, and books hands-on classes for parents and children, and children’s ride was held. Three gained in the working world. in various languages. theater. A cumulative total of 92,000 people have taken part hundred children and in these activities since the foundation was launched. The parents learned how hot-air foundation also provides financial assistance to balloons work and took organizations that work towards the sound development of turns boarding one anchored at a local elementary school students through activities in sports, Participants boarding a hot-air balloon A GLORY (PHILIPPINES), INC. Glory Global Solutions employees elementary school. at an elementary school employee lecturing at the symposium with items for donation to children science, and culture. in the Sahara Desert

17 GLORY CSR Report 2016 GLORY CSR Report 2016 18 For details, please visit GLORY’s website. Environmental Initiatives http://www.glory-global.com/csr/environment/

The entire GLORY Group works to protect the environment under the GLORY Environmental Vision. GLORY’s New Factory Built to Preserving Biodiversity Be Green Leading the way Since fiscal year 2011, GLORY has strived to protect and for a prosperous Earth To create a sustainable society, the GLORY Group has formulated an environmental with dynamics and GLORY’s rebuilt Himeji Factory became operational in maintain biodiversity through initiatives such as the GLORY technology through vision with three areas of focus: products, business, and awareness. The vision’s top cooperative efforts September 2015. The goal was to amalgamate divisions such Yumesaki Forest (Himeji City, Hyogo Prefecture) and forest priorities are the prevention of global warming, the management and reduction of as parts processing, sheet-metal processing, and assembly, conservation activities in the mountains of Nagano chemical substances, the effective use of resources, and the preservation of thus strengthening functions for the development of Prefecture. Preservation biodiversity. of biodiversity production technologies. In fiscal year 2015, a biological survey was conducted in Prevention of Effective use Based on this vision, GLORY has formulated the 2017 Medium-Term Environmental global warming of resources Management The new factory was designed to be green. It has a the Yumesaki Forest. Results confirmed the existence of 10 Products and reduction Business Plan, a three-year plan starting in April 2015 as a group-wide environmental effort. of chemical ventilation tower (an “eco void”) that promotes gravitational species designated as precious by the prefectural substances ventilation. Air is ventilated naturally and efficiently when the authorities, including the kayakorogi cricket (Euscyrtus GLORY Environmental Vision Awareness windows on each floor are opened and closed. The factory japonicus) and the Japanese green woodpecker (Picus To promote the reduction of environmental load and the preservation of natural resources on a global scale, we will also has a solar power system and LED lighting. awokera). Since fiscal year 2007, GLORY Engineering Ltd., a contribute to “a solid future” for the global environment. The site of the former Himeji Factory has been made into GLORY group company, has been taking part in an annual Developing Environmentally Friendly Products a company outdoor rest area where employees can relax tree-planting event in the forests of Takao near Tokyo. DSS-500 and chat while surrounded by trees and flowers. The GLORY Group develops environmentally friendly coin and banknote products that minimize environmental impact throughout deposit machine

the product lifecycle. *G-Eco products are GLORY products that satisfy in-house The DSS-500 coin and banknote deposit machine for standards for environmental supermarkets, restaurants, and specialty shops—a GLORY friendliness—for example, by exhibiting electric power G-Eco product* developed in fiscal year 2015—consumes efficiency at least 15% better than existing products and by kayakorogi approximately 33% less electricity than its predecessor conforming to regulations on A product. It is also 92% recyclable. chemicals contained in cricket, a precious products. species

The new Himeji Factory and the company outdoor rest area A forest conservation activity

Environmentally Friendly nationwide network of more than 100 service locations. 2017 Medium-Term Environmental Plan, Fiscal Year 2015 Results Technical staff collect used cylinders during routine Activity 2017 Medium-Term Fiscal Year Activity Themes Fiscal Year 2015 Results Maintenance Products maintenance work, and these cylinders are then sent to Areas Environmental Targets 2015 Targets GLORY’s Recycle Jet compressed air duster is used to affiliated facilities to be refilled with injection gas. Prevention of Reduce CO2 emissions compared with Reduce by at least 15% global warming previous models by at least 15% (average (for products developed Reduced by average of 27% (target achieved for 5 of 7 models) remove dust and other contamination from electronics and These efforts were recognized when GLORY received an Products across all new products) in fiscal year 2015) Management and precision machinery in an environmentally friendly manner. excellence award at the Comply with all relevant RoHS Directive: Confirmed compliance of new parts for EU-bound Development of reduction of Make all new products RoHS compliant laws products environmentally chemical substances Rather than using chlorofluorocarbon (CFC) alternatives, the 18th Grand Prix Contest friendly products 2 Reduce by at least 3% Recycle Jet is filled with CO injection gas recovered as an for Ozone Layer Effective use of Reduce CO2 emissions during parts REACH Regulation: Surveyed SVHC amounts. Confirmed non-usage resources manufacturing by at least 10% (for products developed of restricted substances industrial by-product. This gives it a global warming Preservation & Global in fiscal year 2015)

potential just 1/1,430th that of existing products—in other Warming Prevention, Have environmentally friendly products At least 45% of sales Prevention of account for at least 55% of sales Accounted for 51.1% of sales words, it has a minimal global warming effect. In addition, its sponsored by the Reduce annual average global warming Reduce annual per-unit energy consumption Reduced annual average by 2.6% by 1% reusable cylinder contributes to minimizing waste materials. Nikkan Kogyo Shimbun, Business by 1% (base year: fiscal year 2010) GLORY also has a recycling scheme that makes use of a Ltd. Management and Ascertain current Cleaning equipment with a Recycle Jet Reduction of Strictly manage chemical substances on a Conference held with overseas group companies environmental reduction of situation global scale Confirmed details of method for managing chemical substances impact from chemical substances Formulate plan business activities Reduce annual volume of waste generated by Effective use of Manage control limits Reduced annual volume of waste generated by average of 1.7% resources 1% (base year: fiscal year 2010)

Carried out forest conservation and maintenance activities on April The mission of our company department is to Second, the reusable cylinders mean that 4 (20 trees planted, 1 ha of forest thinned) Held nature experience event for employee families on October 17 lead group-wide environmental activities. We using the Recycle Jet contributes to a Plant 20 trees Increase the contribution that the GLORY Conducted biological surveys on September 25 and 26 (confirmed use GLORY’s Recycle Jet compressed air zero-waste society. Third, it’s extremely safe. Yumesaki Forest makes to biodiversity Thin 1 ha of forest existence of 10 species designated as precious by prefectural preservation (continue botanical surveys and Conduct biological authorities) 2 duster for three reasons. First, the product CO is non-flammable, so it won’t ignite a improve management criteria) survey Preservation of Kanto area: Held cleanup on banks of Arakawa River, Tokyo; reduces CFCs. We hadn’t thought about CFCs in flame; plus, it’s harmless even if accidentally biodiversity conducted forest conservation activities in Saku, Nagano Awareness Prefecture; donated building blocks made from sustainable wood to compressed air dusters until GLORY showed inhaled. Raising kindergarten environmental us its product. The Recycle Jet also makes it Our company will continue to use awareness Himeji: Held nature experience event for employee families (2 families of GLORY suppliers also participated) easier for us to calculate the amount of CFC environmentally friendly products like GLORY’s Cooperate with stakeholders to preserve Formulate plan Masamichi Okano Kanto area: Conducted forest conservation activities in Nagano biodiversity Carry out plan emissions we are reducing; since the product Recycle Jet to reduce our impact on the Assistant Manager, Prefecture (10 employees of GLORY suppliers also participated); Global Environmental made building blocks from sustainable wood is filled only with CO2, the amount that’s used environment. Management Department, Ascertain current Conducted a questionnaire survey of overseas group companies equals the amount of CFCs that we don’t use. Shimadzu Corporation Develop environment-related action situation programs on a global scale Overseas group companies conducted forest conservation activities Formulate plan and community cleanups

19 GLORY CSR Report 2016 GLORY CSR Report 2016 20 Stakeholder Dialogue

GLORY communicates with stakeholders and strives for appropriate information disclosure. Third-Party Opinion Dialogue with Customers Dialogue with Business Partners Business Activities on the Same Axis as Social GLORY takes the opportunity to introduce the GLORY Suppliers are important partners that enable GLORY to Initiatives Chika Saka Group’s products and services to customers in Japan and consistently manufacture high-quality products, and it is Professor, School of Business Administration, GLORY CSR Report 2016 around the world and to hold dialogues with them. vital that a system of cooperation is in place. To this end, The clearly expresses the commitment of Kwansei Gakuin University top management towards CSR. That is, it indicates that social Doctor of Commercial Science. Member of the In Japan, the company holds GLORY Presentation Fairs GLORY has been holding annual Supplier Conferences in Science Council of Japan, Board Member of the initiatives are on the same axis as the corporate philosophy of Japan Corporate Social Accounting and and other private exhibitions, while also taking part in major Japan, where the company explains its curren t situation and “contributing to the development of a more secure society.” The Reporting Association, Board Member of the trade shows such as Retail Tech Japan and the International strategies. This is part of an effort to build relationships of National Business Universities Education report also demonstrates GLORY’s dedication to implementing Council. Published works include Modern Hospital Show. Overseas, GLORY participates in trust that allow GLORY and its suppliers to share the worldwide measures to support the 10 principles of the United Environmental Accounting Theory, Tokyo Keizai Joho Shuppan. Awards include Japan EuroCIS in Germany, Global Gaming Expo (G2E) in the US, common goal of achieving a sustainable society. In fiscal Nations Global Compact. Accounting Association’s Association Award Special Report 1 outlines value chain CSR initiatives and Taiwan Accounting Association’s 2015 CIFTEE in China, and others. year 2015, a Supplier Conference was held at GLORY Annual Best Paper Award. GLORY also invites its customers to the Himeji and (PHILIPPINES), INC. (GPI), the company’s factory in the categorized by stakeholder type. As an integrated organization that can handle everything from planning and development to Saitama factories, so they can see the production sites for Philippines. This was the first such conference held product maintenance, GLORY can tackle CSR issues across the management creed, all while valuing the culture, history, and themselves. This gives them a deeper understanding of the overseas. entire value chain. For example, material flow cost accounting experience that the company has accumulated as a good company’s production system and quality control. GLORY also holds Quality Improvemen t Activity enables GLORY to implement improvement measures throughout corporate citizen. Workshops where suppliers present their quality the value chain. This enables the company to address CSR issues improvement initiatives. This event enables suppliers to and reduce costs at the same time. Special Report 2 outlines the 100th Anniversary and Beyond share information on best practices. contributions that GLORY products have made to society over the years. These pages tell the story of how GLORY began developing In anticipation of its centennial in 2018, GLORY formulated the its own products and how it grew as a company by innovating its Long-Range Vision 2018. This long-term policy has the goal of core technologies and expanding its business globally. “seeking sustained corporate growth together with society The integrity of this year’s CSR report can be seen in its through CSR activities.” With overseas sales accounting for coverage of GLORY’s continuing efforts in the areas of nearly 50% of total sales, GLORY needs globally minded governance, quality, human resources, social initiatives, personnel and effective strategies for newly emerging countries. GLORY Presentation Fair 2015 At an overseas trade show environmental protection, and stakeholder dialogue. The report’s Against this background, CSR can serve as a kind of soft law. It reliability is apparent, owing to its clarity, completeness, and can help avoid conflicts of values, aid in the search for solutions, neutrality—the latter enhanced by the inclusion of comments by and expand opportunities for business. While valuing CSR, the Supplier Conference Factory tour for GPI suppliers stakeholders from outside the company. The sincerity of GLORY’s GLORY Group is clearly striving to achieve sustainability both for environmental efforts is epitomized by the fact that KPIs (key itself and for society. Dialogue with Shareholders performance indicators) are disclosed alongside medium-term In the future, I would like to see GLORY formulate a and Investors environmental targets, annual objectives, and results. As a good medium-to-long-term strategy that allows it to seamlessly link corporate citizen, GLORY encourages its employees to actively KPIs in CSR with KPIs for raising corporate value. Such a strategy GLORY strives to build long-term relationships of trust with Dialogue with Employees participate in various social action programs. would be based on identifying material issues, a process that its shareholders and invest ors. To this end, the company The Corporate Governance Guidelines formulated in GLORY is currently undertaking. I would also like to see concrete engages them in constructive dialogue to deepen their Since fiscal year 2012, GLORY has held meetings in which February 2016 include a clause on CSR and sustainability. action plans and KPI progress management. I look forward to Readers can see GLORY’s stance on ensuring transparency and seeing what changes GLORY will generate by integrating its core understanding of GLORY’s management policy and business the president and other senior executives provide updates raising corporate value by strengthening governance. Employees business with CSR and by using its technological strengths and activities. It also works to increase management to employees. The president explains the company’s collectively strive to follow the Corporate Action Guidelines and ability to offer superb solutions. transparency through timely, accurate, and fair information philosophy and the state of its business, while senior put into practice the company’s corporate philosophy and disclosure. In fiscal year 2015, GLORY hosted a showroom executives and employees build mutual understanding tour after the general meeting of shareholders. On other through dialogue. The goal of these meetings is to enhance occasions during the year, it held financial results briefings employees’ sense of involvement in business management for institutional investors and company briefings for and to boost thei r motivation. In fiscal year 2015, these individual investors. meetings were held at 12 locations throughout Japan. GLORY’s Response The GLORY corporate website has a special section for GLORY senior executives also frequently visit Group

shareholders and investors. Here, quarterly financial companies and interact with employees there. This helps to GLORY sincerely thanks Professor Saka for her operations is something we would definitely like reports, shareholder reports, annual reports, and other foster a sense of unity throughout the GLORY Group. valuable remarks regarding our CSR efforts. to incorporate into our future activities. materials are disclosed in a timely manner for the For the GLORY Group, fulfilling CSR means GLORY will keep up its efforts in integrating convenience of shareholders and invest ors. practicing the ideals of our corporate philosophy our core business with CSR, so that we can in all places of work and, in our daily activities, contribute to the development of a society with putting into action our desire to be a good greater collective peace of mind. We will also corporate citizen. We are most encouraged by continue in an appropriate manner to disclose to Professor Saka’s use of words such as “integrity,” all stakeholders information on our business and “reliability,” and “sincerity” to praise our efforts— CSR activities. efforts that often go unnoticed by those outside Motozumi Miwa the company. Her suggestion of utilizing CSR as a Director and Senior Managing soft law to help expand global business Executive Officer

Showroom tour for shareholders Company briefing for individual Meeting with the president (at the Himeji Head Office) investors

21 GLORY CSR Report 2016 GLORY CSR Report 2016 22 1-3-1 Shimoteno, Himeji, Hyogo 670-8567, Japan Phone: +81-79-297-3131 Fax: +81-79-294-6233 http://www.glory-global.com

For further information: Corporate Communications Department Phone: +81-79-294-6317 Fax: +81-79-299-6292

GLORY CSR Report 2016

Cover: GLORY produced Japan’s first coin counter, which was recognized as a Mechanical Engineering Heritage in 2015. For more details, see Special Report 2 on pages 9 and 10 of this report.