Questions and Answers at the Conference Call (August 05, 2016)

Q1: Why have Overseas Market earnings been strong?

A1: The main reasons are an improvement in the product mix resulting from higher sales in the retail market and an increase in the profit margin due to higher sales.

Q2: Are overseas customers in the retail market starting to use GLORY’s products faster than you initially expected?

A2: Sales of the products for the retail market have been increasing rapidly in Europe. There is also an increase in negotiations for new orders. We believe that the use of our products by a large supermarket has prompted other retailers to select our products too. In the United States, we expect that demand for our retail market products will start increasing in this fiscal year.

Q3: In the Financial Market, why is your first half sales forecast higher than the second half forecast?

A3: Sales in this market are usually higher in the second half. In this fiscal year, we expect that the first half sales ratio will be higher than usual for two reasons. First, there are large orders for coin and banknote recyclers for tellers. Second, small and midsize financial outlets are placing orders for compact open teller systems earlier than usual.

Q4: Why did you repurchase treasury stock?

A4: Acquiring own stock improves capital efficiency and allows us to implement capital policies with flexibility. In addition, we acquire own stock as one way to return earnings to shareholders.