GLORY LTD. Consolidated Financial Results for the Nine Months ended December 31, 2018

Transcription

1 GLORY LTD. Consolidated Financial Results for the Nine Months ended December 31, Consolidated Financial Results Reference 1) Performance Overview () P 2 - Nine Months ended December 31, 2018 P 15 2) Factors of Operating Income Change 3) Sales & Operating Income by Business Segment P 3 P 4 Consolidated Statement of Income / Statement of Comprehensive Income Consolidated Balance Sheet - Financial Forecast for FY2018 P 17 2 Details of Performance Sales & Operating Income Forecast by Business Segment 1) Sales & Operating Income by Business Segment 2) Capital Expenditures, etc. P 5 P 10 Capital Expenditures, etc. - Topics P 19 3 Financial Forecast for FY2018 1) Financial Forecast for FY2018 2) Sales & Operating Income Forecast by Business Segment 3) Sales Forecast by Geographical Segment of Overseas P 11 P 12 P 13

2 1 Consolidated Financial Results Performance Overview Year-on-Year Net Sales Income Sales were higher thanks to sales growth in Financial and Retail & Transportation s Operating income was on par with the corresponding period of the previous year due to weak sales in Overseas, although sales were strong in Financial. FY2017 ended December 31, 2017 Ratio FY2018 ended December 31, 2018 Ratio Net Sales 161, , Maintenance Sevices 50, , Operating Income Ordinary Income 11, , , , Net Income Attributable to Owners of Parent 5, , * EBITDA 22, , Exchange rate US$ \ 112 \ 111 Euro \ 129 \ 130 *EBITDA=Operating income(loss) + Depreciation and amortization + Goodwill amortization 2

3 Consolidated 1 Financial Results Factors of Operating Income Change Effect of Sales Increase Effect of Increase of Cost of Sales Ratio (Millions of Yen) Operating Income decreased due to effect of increase of cost of sales ratio +1,867-1,885 Operating margin (7.2) Increase of SG&A Expenses -160 Operating margin (6.9) ,701 11,522 ended December 2017 ended December

4 Consolidated 1 Financial ResultsSales & Operating Income by Business Segment Overseas Financial Retail & Transportation Amusement Others ended December 31, 2017 Sales ended December 31, ,005 70,460 37,320 40,749 31,310 37,398 16,406 15,875 1,917 2,321-4,545 ended December 31, 2017 Operating Income ended December 31, ,667 2,835-2, , , ,460 1,277 4,843 2,671 3,264 1,576 2, Total 161, ,804 +4,845 11,701 11,

5 2 Details of Performance Overseas Sales in the U.S. were lower Highlights Banknote recyclers for tellers Sales increased in Europe Sales proceeds deposit machines for retail industries Sales decreased in U.S. Outline of the Segment Sales and maintenance services to financial institutions, cash-in-transit companies, retail stores, casinos, OEM clients and others in overseas. Main Products Banknote recyclers for tellers <RBG series> Sales proceeds deposit machines <CI-100 series> Banknote sorters <UW series> 5

6 Details of 2 Performance Sales by Geographical Segment of Overseas ended December 31, 2017 ended December 31, 2018 Local currency basis Americas 26,796 23,865-2, EMEA 30,892 30, Asia Pacific 10,701 10, China 5,183 3,752-1, OEM 6,614 5, Total overseas sales 75,005 70,460-4, Americas Sales of main products for retail industry were lower. EMEA Sales of main products for financial institutions were favorable. Asia Pacific Sales of products for financial institutions were steady. China Sales of banknote recyclers for tellers were lower. OEM Sales of banknote recycling units for ATMs were higher. 6

7 Details of 2 Performance Financial Operating margin increased mainly due to improvement of product mix Highlights Open teller systems Higher sales particularly for standard type Coin and banknote recyclers for tellers Higher sales due to capturing of replacement demand Outline of the Segment Sales and maintenance services to financial institutions, OEM clients and others in Japan. Open teller systems <WAVE series> Coin and banknote recyclers for tellers <RB series> Multi-functional banknote changers <EN series> 7

8 2 Details of Performance Retail and Transportation Sales of main products were higher Highlights Coin and banknote recyclers for cashiers Higher sales particularly for convenience stores Sales proceeds deposit machines Higher sales for cash-in-transit companies Outline of the Segment Sales and maintenance services to supermarkets, department stores, cash-in-transit companies, railroad companies, tobacco companies, hospitals, local governments and others in Japan. Coin and banknote recyclers for cashiers <RT / RAD series> Sales proceeds deposit machines <DS / DSS series> Sales proceeds deposit machines <DS series> 8

9 Details of 2 Performance Amusement Sales of main products were steady Highlights Card systems Higher sales due to capturing of replacement demand Pachinko prize dispensing machines Higher sales Outline of the Segment Sales and maintenance services to amusement halls (pachinko parlors and others) in Japan. Main Products Card systems Management terminals Pachinko ball counters Prepaid card systems for pachinko parlors Pachinko prize dispensing machines <JK series> 9

10 2 Details of Performance Capital Expenditures etc. ended December 31, 2017 ended December 31, 2018 Quarterly trend 2,679 2,329 2,141 2,121 1,765 2,167 1,930 Capital expenditures 6,027 5, FY16 (4Q) (1Q) (2Q) (3Q) (4Q) 1,542 (1Q) (2Q) (3Q) Depreciation and amortization 7,296 6, ,393 2,203 2,437 2,656 2,154 2,100 2,277 2,326 FY16 (4Q) (1Q) (2Q) (3Q) (4Q) (1Q) (2Q) (3Q) R&D investment 10,071 10, ,669 3,353 3,480 3,238 4,048 FY16 (4Q) (1Q) (2Q) (3Q) (4Q) 3,226 3,592 3,228 (1Q) (2Q) (3Q) 10

11 3 Financial Forecast for FY2018 Net Sales Income Financial Forecast for FY2018 Higher sales due to estimated sales increase in both domestic and overseas market. Higher income mainly due to estimated sales increase in domestic market. FY2017 (Full Year) Results Ratio FY2018 (Full Year) Forecasts Ratio Net Sales 227, , Maintenance Sevices 67,677 68, Operating Income 19, , Ordinary Income 17, , Net Income Attributable to Owners of Parent 12,000 9, Exchange rate US$ 111 Euro

12 3 Financial Forecast for FY2018 Sales & Operating Income Forecast by Business Segment (Full Year) FY2017 Sales (Full Year) FY2018 Forecasts* Operating Income (Full Year) FY2018 FY2017 Forecasts* Overseas Financial 106, , ,500 53,970 57, ,167 9,000-2,967 8, ,030 4,043 6,500 +2, Retail & Transportation Amusement Others 43,216 20,570 2,845 18, ,000 +8,784 52,000 3,476 4, ,331 1, , , ,500 +1,324-1, Total 227, , ,000 19,615 20, *In forecasts, upper row is November 6, 2018 forecast and under row is February 6, 2019 forecast. 12

13 3 Financial Forecast for FY2018 Sales Forecast by Geographical Segment of Overseas FY2017 Full Year FY2018 Full Year (Forecast*) Local currency basis Americas 39,008 41,000 40, EMEA 45,063 45, Asia Pacific 13,755 15,500 15,000 +1, China 5,912 6,000 5, OEM 8,930 7,500-1, Total overseas sales 106, , , *In forecasts, upper row is November 6, 2018 forecast and under row is February 6, 2019 forecast. 13

14 Reference

15 Financial Forecast for ended December 31, 2018 Consolidated Statements of Income / Statement of Comprehensive Income Net sales Cost of sales Selling, general and administrative expenses Operating income Non-operating income Non-operating expenses Ordinary income Extraordinary income Extraordinary loss Income before income taxes and minority interests Income taxes Net Income ended December 31, 2017 Ratio ended December 31, 2018 Ratio 161, , ,845 99, , ,863 50, , , , , ,605 9, , , , , ,439 3, , , Net income attributable to owners of parent 5, , Net Income Valuation difference on availablefor-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total other comprehensive income 6, , ,185 2,188 1, , , ,659 Comprehensive income 9, ,

16 Financial Forecast for ended December 31, 2018 Consolidated Balance Sheets Cash, deposits and Securities Notes and accounts receivable-trade Inventories Other Current assets Property, plant and equipment Customer relationships Goodwill Other Intangible assets Other Total noncurrent assets Total assets As of March 31, As of December Increase/ As of March 31, As of December Increase/ , 2018 Decrease , 2018 Decrease 63,154 75, ,923 Notes and accounts payable-trade 20,106 18,208-1,898 54,275 51,956-2,319 Short-term loans payable 30,751 39,933 +9,182 51,362 56,130 +4,768 Other 40,763 39, Total current liabilities Long-term loans payable 5,956 4, ,620 98,073 Noncurrent liabilities Total liabilities 5,977 5, Capital stock 12,892 12, ,774 70, Retained earnings 165, ,452 22,794 25,797 +3,003 Other 13,893 8,653-5, , ,090 +3,012 Total netassets 192, ,997 Total liabilities and net assets +6, , , ,402 4, ,508 34,509 34, Other 14,531 33, ,937 19,683 19, ,039 33, ,429 45,113 45, , , ,881 +1,072-4, , , , , , ,714 1 Intangible assets on par with the previous year due to effects of exchange rate fluctuations. 2 Noncurrent liabilities increased due to issuance of corporate bonds. 16

17 Financial Forecast for FY2018 Sales & Operating Income Forecast by Business Segment 120,000 80, ,253 57,211 63,027 65,402 57,174 57,572 46,090 47,213 48, ,355 57, , , Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2016 FY2017 FY (Forecast) Overseas Financial Retail & Transportation Amusement Others Total FY2018 Q1 Q2 Q3 Q4 Full Year (Forecasst) (Forecasst) 21,447 24,392 24,621 37, , ,164 1,648 5,365 8,200 11,887 16,574 12,288 16,251 57,000 1,084 2,453 1,306 1,657 6,500 10,050 14,099 13,249 14,602 52, ,392 1,195 1,536 4,800 4,133 5,453 6,289 4,125 20, , ,179 3, ,500 48,232 61,355 57,217 73, ,000 1,725 5,286 4,511 8,478 20,000 17

18 Financial Forecast for FY2018 Capital Expenditures etc. FY2017 FY2018 (Forecast) Changes by six-month periods 6,291 Capital expenditures 8,706 10,000 +1, ,680 FY16 H1 4,363 4,262 4,444 FY16 H2 H1 H2 3,709 H1 H2 (forecast) Depreciation and amortization 9,450 10, ,765 4,704 4,640 4,810 FY16 H1 FY16 H2 H1 H2 4,377 H1 5,623 H2 (forecast) R&D investment 14,119 14, ,759 7,206 6,833 7,286 6,818 7,182 FY16 H1 FY16 H2 H1 H2 H1 H2 (forecast) 18

19 Topics December 27, 2018 Glory Facial Recognition System Used in SECOM s New Sesamo FF Facial Recognition Detection System Sesamo FF has capabilities that make it suitable for a variety of applications: One example is for automatically alerting the staff of a store or financial institution when an important customer arrives; It can also be used at hospitals, nursing care homes and other healthcare facilities when a patient or a resident attempts to leave the building without informing the staff. January 15, 2019 Acquisition of CTS Solutions, a Italian company Sitrade Italia S.p.A., a GLORY subsidiary acquired the entire equity interest in CTS Solutions S.r.l., a company that engages in sales and maintenance service of cash handling equipment in Italy. This acquisition gives GLORY an opportunity for strengthening its direct sales and maintenance service network in Italy. January 24, 2019 Henn-na Hotel Huis Ten Bosch Uses GLORY Facial Recognition Cloud Service All 56 rooms in the south arm of Henn-na Hotel Huis Ten Bosch, which is located in the city of Sasebo in Nagasaki prefecture, use a keyless guest room access system that incorporates the GLORY facial recognition cloud service. February 1, 2019 GLORY Receives Tokyo Financial Award GLORY received a Tokyo Financial Award, which is sponsored by the Tokyo metropolitan government, in the Resolution of Tokyo Residents Needs Category for an innovative idea that simplifies the process of confirming the identities of customers at the offices of financial institutions. GLORY was selected as one of the financial companies who proposed particularly outstanding solution from among 55 companies across 16 countries and regions (including Japan). 19

20 <Notes> 1.The forward-looking statements such as operational forecasts contained in this document are based on the information currently available to the company and certain assumptions which the company regards as legitimate, and are not promises regarding the achievement of forecasts. Actual performance may differ greatly from these forecasts due to various present and future factors. The factors includes changes in the economic conditions in the company's principal markets, changes in demand for the company's products, fluctuations of exchange rates, and impacts of changes in various regulations, accounting principles and practices. Please also take note that forecasts in this document may change without prior notice unless required by laws. 2.Amounts are rounded down to the nearest million yen for calculating percentages of year-on-year changes and composition ratios.