Glory : Discover Concerning the Disclosure of the Abstract of the Investigation Report for the Incident Occurred at Home Subsidiary

(TRANSLATION FOR REFERENCE ONLY)

March 18, 2022

Information Launch

Discover Concerning the Disclosure of the Abstract of the Investigation Report

for the Incident Occurred at Home Subsidiary

Following the “Discover Concerning the Disclosure of the Outcomes of the Investigations by the Inner Investigation Committee” launched on March 14, 2022, GLORY LTD. (the “Firm”) hereby discloses the abstract of the investigation report as hooked up.

About GLORY LTD.

GLORY LTD., headquartered in Himeji, Japan, is a pioneer within the growth and manufacture of cash dealing with machines and methods. GLORY offers quite a lot of merchandise comparable to cash dealing with machines, money administration methods, merchandising machines, automated service tools, and money administration options which might be constructed on its modern recognition/identification and mechatronics know-how. Dedicated to satisfy society’s wide-ranging wants, GLORY serves the monetary, retail, merchandising machine, amusement and gaming industries in over 100 international locations all over the world. GLORY has roughly 11,000 workers worldwide. For extra details about GLORY, please go to GLORY Group web site at

https://www.glory-global.com/

Contact:

Takatoshi Minamiyama

Common Supervisor; Company Communications Dept.

TEL: +81-79-294-6317

(TRANSLATION FOR REFERENCE ONLY)

1. Define of the incident

“X”, an worker, who was dismissed on disciplinary grounds as of March 11, 2022, of the Firm’s home subsidiary, GLORY Service Co., Ltd. (“GS”), embezzled money and financial institution deposits of GS from round 2009 to February 3, 2022 (the “Embezzlement”). The Embezzlement was carried out by the next strategies;

1. X embezzled money of GS from round 2009 to early February 2022 (the “Money Embezzlement”) both by;

• Embezzling money handed over by different GS workers to X which ought to have been put into the designated depository protected at GS.
• Embezzling money saved within the depository protected, opening it with the important thing managed by X.

1. X transferred funds deposited in one of many accounts of GS at Y Financial institution to X’s private account at W Financial institution by on-line banking switch from July 16, 2020 to February 3, 2022 (the “Deposits Embezzlement“).

To stop the Embezzlement from being found, X falsified the paperwork to be verified by X’s supervisor, together with the financial institution statements of the GS account and reconciliation report hooked up to it. As well as, X manipulated accounting journal entries to hide the Embezzlement.

2. Complete injury incurred by GS as a result of Embezzlement and using embezzled cash

The embezzled cash was discovered to have been used for betting on horse racing (not less than JPY 1,763,557,590) and for different leisure bills.

3. Causes of the Incident

(1) Direct Causes

• Dependence and focus of authorities on a specific worker over the long run for accounting duties
• Workflow for money assortment and deposit faulty from the attitude of stopping incidents just like the Embezzlement
• Non-compliancewith GS accounting guidelines by workers of GS relating to financial institution switch and remittance
• Insufficient supervision and vigilance withwithin the division to which X belonged
• Inadequacy of guidelines to implement acceptable inside controls in GS and of consciousness by workers of GS in the direction of current guidelines

(TRANSLATION FOR REFERENCE ONLY)

1. Different underlying causes for the Embezzlement

• Insufficient human sources for the duties allotted to the division to which X belonged
• Insufficient consideration by the Firm to its subsidiary credit score evaluation
• Insufficient consciousness of key points in auditing by GS company auditors and the Firm’s inside audit division

1. Measures proposed by the Inner Investigation Committee to forestall recurrence of comparable incidents

• To keep away from dependence on specific worker(s) and decentralize authorities
• To enhance accounting workflow
• To guarantee full compliance with GS accounting guidelines
• To supply obligatory trainings to GS managers
• To supply training obligatory to make sure strict adherence to GS guidelines by workers of GS
• To implement acceptable project of human sources
• To guarantee strict approval course of for credit score to subsidiaries by the Firm
• To reinforce the standard of audits

1. Existence of misconducts much like the Embezzlement

No misconduct much like the Embezzlement was discovered throughout the Firm group.

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