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,