1

Gulliver International Co., Ltd.

Financial Results for the Interim Periodof the Fiscal Year Ending February 28, 2009
(March 1, 2008 to August 31, 2008)

This document is a translation of sections of the original Japanese as a guide for non-Japanese
investors. It contains forward-looking statements based on a number of assumptions and beliefs madeby management in light of information currently available. Actual financial results may differ materiallydepending on a number of factors, including changing economic conditions and the pricing and productinitiatives of new and existing competitors.

SUMMARY OF FINANCIAL STATEMENTS (Consolidated)
Results for the interim period of the fiscal year ending February 28, 2009

Gulliver International Co., Ltd.
Stock Code: 7599
http://www.glv.co.jp/
Chairman: Kenichi Hatori

October 17, 2008

Listed exchanges:
Inquiries:
Telephone:Tokyo (1st Section)
Senior Managing Director: Ikuo Murata+81 3 5208-5503

Notes to preparation of these interim financial statements
1. Scheduled date for submission of the interim financial report: November 25, 2008
2. Scheduled date for distribution of dividends: November 13, 2008
1. Consolidated financial results for the interim period of the fiscal year ending February 28, 2009
Percentage figures represent changes compared to the previous fiscal period

1) Consolidated Operating Results

Millions of yen, rounded downInterim period ended
August 31, 2008

Interim period ended
August 31, 2007(% change)

Sales ..............................................................................
Operating income...........................................................
Ordinary income.............................................................
Net income.....................................................................
Earnings per share (¥) ...................................................
Fully diluted earnings per share (¥)................................

91,011
2,807
2,901
1,042
108.62--

4.3(40.9)(39.2)(61.5)

Fiscal year ended
February 29, 2008(% change)

87,226
4,752
4,778
2,707
279.43279.28

(0.8)
6.4
8.2
(18.4)(% change)

190,592
8,698
8,699
4,650
482.27482.15-----

Notes:
Investment gains and losses under the equity method: Interim period of FY ending February 28, 2009: ¥ -- million; Interim period of FY ended
February 29, 2008: ¥ -- million; FY ended February 29, 2008: ¥ -- million

2) Financial Position (consolidated)

Total assets....................................................................
Net assets ......................................................................
Shareholders’ Equity ratio (%) .......................................
Shareholders’ net assets per share (¥) ..........................

Millions of yen, rounded down

As ofAugust 31, 2008
58,345
20,95135.2
2,143.32

As ofAugust 31, 2007
44,164
19,76443.8
2,018.80

As ofFebruary 29, 2008
50,426
20,76940.4
2,122.06

Note: Shareholders’ equity: Interim period of FY ending February 28, 2009: 20,569 million yen; Interim period of FY ended February 29, 2008:
19,374 million yen; Full year ended February 29, 2008: 20,365 million yen

3) Consolidated cash flows

Cash flow from operating activities ................................
Cash flow from investing activities .................................
Cash flow from financing activities .................................
Cash and cash equivalents at end of period ..................
2. Dividends

Millions of yen, rounded downInterim period ended
August 31, 2008
(4,121)(1,344)
4,895
3,088

Interim period ended
August 31, 2007
2,303
(1,741)(2,676)
2,927

Fiscal year ended
February 29, 2008

Fiscal year ending
February 28, 2009

Interim dividend per share (¥) .......................................
Year-end dividend per share (¥) ...................................
Annual dividend per share (¥) .......................................

87.00
87.00
174.00

41.00--

Fiscal year ended
February 29, 2008
1,354
(2,960)177
3,639
Fiscal year ending
February 28, 2009
(Forecast)-41.0082.00

3. Forecasts for the fiscal year ending February 28, 2009 (March 1, 2008 to February 28, 2009)
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

FY ending February 28, 2009
Sales .............................................................................
Operating income..........................................................
Ordinary income............................................................
Net income....................................................................
Earnings per share (¥) ..................................................

196,300
5,600
5,600
2,500
260.50－ 1 －3.0%(35.6%)(35.6%)(46.2%)

4. Other
1)

Transfer of important subsidiaries during the period (Transfers of certain subsidiaries resulting in changes in the scope of consolidation):
None

2)

Changes in accounting methods, procedures and presentation in the preparation of these financial statements (Key items mentioned inMaterial Items Forming the Basis for the Preparation of the Consolidated Financial Statements for the Fiscal Year)
1. Changes following revisions to accounting standards: Yes
2. Other changes: Yes
Note: Please see Changes in Accounting Treatment on page 21 for details.

3)

Number of shares outstanding (ordinary shares)
1. Number of shares outstanding at end of period (including treasury shares): Interim period of FY ending February 28, 2009:10,688,800
shares; Interim period of FY ended February 29, 2008:10,688,800 shares; Fiscal year ended February 29, 2008: 10,688,800 shares
2. Number of treasury shares at end of period: Interim period of FY ending February 28, 2009:1,091,725 shares; Interim period of FY ended
February 29, 2008: 1,091,721 shares; Fiscal year ended February 29, 2008: 1,091,723 shares

Reference: Outline of Non-Consolidated Interim Financial Results
1. Non-Consolidated financial results for the interim period of the fiscal year ending February 28, 2009
Percentage figures represent changes compared to the previous fiscal period1) Non-Consolidated Operating Results

Millions of yen, rounded downInterim period ended
August 31, 2008

Interim period ended
August 31, 2007(% change)

Sales .............................................................
Operating income..........................................
Ordinary income............................................
Net income....................................................
Earnings per share (¥) ..................................

77,088
2,819
2,878
1,099
114.580.8(36.3)(35.6)(55.6)(% change)

76,442
4,425
4,469
2,475
255.502) Financial Position (Non-Consolidated)

Total assets...................................................
Net assets .....................................................
Shareholders’ equity ratio (%).......................
Shareholders’ net assets per share (¥) .........

Fiscal year ended
February 29, 2008

(4.5)
3.5
4.5
8.9
--

167,219
8,459
8,614
4,293
445.27------

Millions of yen, rounded down

As ofAugust 31, 2008
40,757
19,63148.2
2,045.56

As ofAugust 31, 2007
37,717
18,40448.8
1,917.72

As ofFebruary 29, 2008
35,37819,38954.8
2,020.31

Note: Shareholders’ equity: Interim period of FY ending February 28, 2009: 19,631 million yen; Interim period of FY ended February 29,
2008: 18,404 million yen; Fiscal year ended February 29, 2008: 19,389 million yen

2. Non-Consolidated forecasts for the fiscal year ending February 28, 2009 (March 1, 2008 to February 28, 2009)
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

FY ending February 28, 2009
Sales ............................................................
Operating income .........................................
Ordinary income ...........................................
Net Income...................................................
Earnings per share (¥)..................................

170,000
5,500
5,500
2,500
260.501.7%(35.0%)(36.2%)(41.8%)

Forecasts and forward-looking statements in this document are based on a number of assumptions and beliefs made by management in light of
information currently available. Actual financial results may differ materially depending on a number of factors, including economic conditions,legislative and regulatory developments, delay in new product or service launches, and pricing and product initiatives of competitors.

－ 2 －1. Operating results(1) Outline of consolidated operating results
Among Gulliver’s stores involved in the purchase and sale of cars, 301 are directly operated stores (6 morethan at the end of the interim period of the previous fiscal year and 2 more than at the end of the previous fiscal
year). The number of cars sold at directly managed stores increased as a result of an increase in the number ofstores and investments in advertising. However, prices at used car auctions decreased in comparison to theprevious year leading to a decrease in the average sale price per car.
In sales, general and administrative expenses, in addition to an increase in advertising expenses, personnel
expenses increased following an increase in the number of staff in the previous fiscal year. Further, sales,
general and administrative expenses at consolidated subsidiaries also increased.
As a result of changes to the accounting treatment for the reserve for retirement benefits for directors,
provisions for the reserve for retirement benefits for directors arising with respect to previous fiscal years havebeen recorded as extraordinary losses in the financial report for the first quarter of the current fiscal year.
As a result of the factors noted above, consolidated net sales for the interim period under review increased
4.3% over the interim period of the previous fiscal year to ¥91,011 million. Operating income decreased 40.9% to¥2,807 million, ordinary income decreased 39.3% to ¥2,901 million and net income decreased 61.5% to ¥1,042
million.

Performance by segment
i. Sales of used automobiles
As previously mentioned, the number of cars sold through directly operated stores increased. However, theaverage price-per-car decreased due to a reduction in prices of used cars sold through auctions.
As a result, net sales increased 4.2% or ¥3,477 million over the interim period of the previous fiscal year to¥85,447 million and operating income decreased 30.5% or ¥1,823 million to ¥4,152 million.

ii. Financing business
G-One Financial Services Co., Ltd. a financial services company that primarily handles auto loans, steadily
expanded its operating base and grew revenues, however sales, general and administration expenses increased
as a result of business expansion.
As a result, net sales for the period under review increased 29.7% or ¥670 million over the interim period of theprevious fiscal year to ¥2,928 million, and operating income decreased 55.3% or ¥119 million to ¥96 million.

－ 3 －iii. Other businesses
The number of Gulliver franchised stores decreased by 11 stores compared to the end of the interim period of theprevious fiscal year and decreased by 4 stores compared to the end of the previous fiscal year to 147 stores, as aresult, revenues from Gulliver franchised stores also decreased. However, revenues in the transport businessincreased.
As a result, net sales increased 14.7% or ¥721 million over the interim period of the previous fiscal year to ¥5,617
million and operating income increased 7.6% or ¥99 million to ¥1,401 million.

(2) Consolidated financial position and related analysis
Assets, liabilities and net assets
1. Current assets
The balance of current assets at the end of the interim period under review increased ¥14,182 million
compared to the end of the interim period of the previous fiscal year to ¥38,929 million due primarily to a ¥7,911
million increase in accounts receivable and a ¥5,264 million increase in inventory.
2. Fixed assets
The balance of fixed assets at the end of the interim period under review decreased ¥2 million compared to theend of the interim period of the previous fiscal year to ¥19,415 million largely due to a ¥329 million decrease insoftware.
3. Current liabilities
The balance of current liabilities at the end of the interim period under review increased ¥12,027 million
compared to the end of the interim period of the previous fiscal year to ¥31,703 million due primarily to a ¥8,703
million increase in short-term borrowings for the expansion of operations.
4. Fixed liabilities
The balance of fixed liabilities at the end of the interim period under review increased ¥966 million compared tothe end of the interim period of the previous fiscal year to ¥5,690 million due primarily to a ¥566 million increasein long-term borrowings for the expansion of operations.
5. Net assets
The balance of net assets at the end of the interim period under review increased ¥1,186 million compared tothe end of the interim period of the previous fiscal year to ¥20,951 million primarily due to a ¥1,182 million
increase in retained profit.

－ 4 －Cash flow
For the interim period of the fiscal year ending February 28, 2009, cash flow from financing activities was positiveand cash flow from operating and investing activities was negative, while overall cash flow was a negative figureof ¥551 million. The balance of cash and cash equivalents at the end of the period was ¥3,088 million.
Cash flow from operating activities
Net cash and cash equivalents (“cash”) used in operating activities was ¥4,121 million.
Principal components of this included interim net income before adjustment for taxes of ¥2,237 million, a net
decline in trade receivables of ¥3,971 million, and a ¥1,246 million payment of income taxes.
Cash flow from investing activities
Net cash used in investing activities was ¥1,344 million. The principal factor contributing to this result was
payments following the acquisition of tangible fixed assets.
Cash flow from financing activities
Net cash generated from financing activities was ¥4,895 million primarily due to proceeds from an increase in
short-term borrowings.
Trends in Gulliver’s shareholders’ equity and cash flow indicators are as follows:
Interim FY 2006

FY 2006

Shareholders’ equity ratio (%)

40.6

41.2

43.8

40.4

35.2

Equity ratio based on market
capitalization (%)

230.5

181.9

127.5

80.6

35.4

Debt redemption years (years)

3.8

2.3

5.9

12.7

--

134.9

93.6

43.0

9.6

--

Interest coverage ratio

Interim FY 2007

FY 2007

Interim FY 2008

Notes:
1. Breakdown of each indicator
Shareholders’ equity ratio = Shareholders’ equity/total assets
Equity ratio based on market capitalization = Market capitalization/ Total assets
Debt redemption years = Interest bearing debt/Operating cash flow
Interest coverage ratio = Operating cash flow/Interest payments
2. The number of debt redemption years and interest coverage ratio for the interim period of the consolidated fiscal year
ending February 28, 2009 were operating cash flow negative and therefore have been omitted
3. Each index is calculated from values on a consolidated base
4. Market capitalization is calculated using the formula: closing share price at period end x number of shares in issuance(excluding treasury stock).

(3) Basic policy concerning distribution of profits and dividends for the period under review
We have identified the return of profits to investors as an important management issue and also place emphasis
on our dividend payout ratio. The Company had previously announced a target dividend payout ratio of
approximately 30% of non-consolidated net income for the fiscal year ended February 29, 2008. However, fromthe fiscal year ending February 28, 2009, the target dividend payout ratio has been revised and will be based on
consolidated net income. Actual dividends may differ from previously announced forecasted dividends due toconsolidated net income results.
－ 5 －Based on these policies, and in consideration of the forecasted consolidated net income, the planned dividend
per share for the fiscal year ending February 28, 2009 is for an annual dividend of ¥82.00 per share, comprising
an interim dividend of ¥41.00 and a year-end dividend of ¥41.00.
With the intention of further increasing profits and increasing corporate value, as well as strengthening
competitiveness and improving services, retained capital will be used to carry out effective and efficientinvestments in such areas as opening new directly operated stores, strengthening internal infrastructure (IT),developing new businesses, including those overseas, and training personnel.

－ 6 －Consolidated Balance Sheets
Millions of yen
As ofAugust 31, 2008ASSETS

As of
August 31, 2007%

As ofFebruary 29, 2008%%

Current assets
Cash and deposits .................................

3,088

2,927

3,639

Accounts receivable ...............................

20,204

12,293

16,166Inventory ................................................

10,634

5,369

7,294

Deferred tax assets ................................

586

731

407

3,479
(55)

3,667

Others ....................................................

4,529

Allowance for doubtful accounts.............

(113)

Total current assets ...........................

38,92966.7

24,746(25)
56.0

31,14861.8

Fixed assets
Tangible fixed assets*1

Building and structures...........................

8,055

7,933

7,848

Tools, fixtures and equipment ................

1,458

1,315

1,420

Land .......................................................

327

327

327

Other ......................................................
Total tangible fixed assets

333
10,175

129
17.4

9,705

162
22.0

9,758

19.3

Intangible fixed assets
Software ................................................

1,763

2,092

1,994

Other .....................................................

207

159

226

Total intangible fixed assets...............

1,970

3.4

2,251

5.1

2,220

4.4

Investments and other assets
Investment securities .............................

50

112

98

Deposits and guarantee money .............

3,516

3,635

3,404

Construction cooperation fund ...............

2,973

2,852

3,180

Deferred tax assets ................................

506

252

465

Other ......................................................

487

823

441

Allowance for doubtful accounts.............

(264)

(216)

(292)

Total investments and other assets........

7,269

Total fixed assets...............................
Total Assets ............................................

16.9

7,298

19,41844.0

19,27838.2

44,164100.0

50,426

100.0

12.5

7,460

19,415

33.3

58,345

100.0

－ 7 －

14.5

Consolidated Balance Sheets
Millions of yen
As ofAugust 31, 2008
LIABILITIESAs ofAugust 31, 2007

As ofFebruary 29, 2008%%

Current liabilities
Accounts payable ...................................

4,884

2,414

3,505

Short-term borrowing..............................

18,853

10,15013,131

Accrued expenses ..................................

2,063

2,554

3,039

Accrued corporate taxes.........................

1,476

1,970

1,306

Deposits received ...................................

326

461

351

Reserve for bonuses ..............................

586

743

562

Merchandize warranty reserve ...............

243

--

--

Others.....................................................

3,269

Total current liabilities...........................

31,703

1,380
54.3

19,6752,182
44.6

24,078

47.7

Long-term liabilities
Long-term borrowing ..............................

4,066

3,500

4,085

Guarantee deposits received .................

973

845

1,021

Reserve for director’s retirement
benefit.................................................

399

--

--

Other

251

378

471

Total fixed liabilities ..............................

5,690

9.8

4,724

10.7

5,578

11.1

Total liabilities ....................................

37,39364.1

24,39955.3

29,657

58.8

Paid in capital .........................................

4,157

7.1

4,157

9.4

4,157

8.3

Capital surplus........................................

4,032

6.9

4,032

9.1

4,032

8.0

NET ASSETS

Retained profit ........................................

23,04039.5

21,85849.5

22,833

45.3

Treasury stock ........................................

(10,678)(18.3)(10,678)(24.2)(10,678)(21.2)

Total net assets .................................

20,55235.2

19,36943.8

20,344

40.4

(14)

0.0

8

0.0

7

0.0

32

0.0

(3)

(0.0)

13

0.0

17

0.0

4

0.0

20

0.0

Valuation difference on othermarketable securities ............................
Translation adjustments .....................
Valuation and translation adjustments ...
Warrants for new shares...........................

4

0.0

2

0.0

4

0.0

Minority interests .......................................

376

0.7

387

0.9

400

0.8

Total net assets .................................

20,951

35.9

19,76444.7

20,76941.2

Total liabilities and net assets........

58,345100.0

44,164100.0

50,426

100.0

－ 8 －

Consolidated Statements of Income
Millions of yen
March 1, 2008 to
August 31, 2008

March 1, 2007 to
August 31, 2007

March 1, 2007 to
February 29, 2008%

Sales ...................................................................

91,011%100.0

87,226%100.0

190,592

100.0

Cost of sales........................................................

70,15777.1

66,45376.2

147,032

77.1

Gross profit ...................................................
Sales general and administrative expenses*1 ........

20,85322.9

20,77223.8

43,55922.9

18,04519.8

16,02018.4

34,86018.3

Operating income...............................................
Non-operating income

2,807

3.1

4,752

5.4

8,698

4.6

Interest received ..............................................

9

3

5

Dividends received ..................... ....................

0

4

17

Commissions received.....................................

2

2

4

Compensation received ...................................

--

15

15

Gain from foreign exchange .............................

74--

Other ................................................................

113

Total non-operating income

200

Non-operating expenses
Interest paid ....................................................

82

75
0.2

101

265
0.1

53

307

0.2

140

Transfer to allowance for doubtful accounts ...

--

--

27

Other...............................................................

25

21

138

Total non-operating expenses ............................

107

0.1

75

0.1

306

0.2

Ordinary income .................................................
Extraordinary profit

2,901

3.2

4,778

5.4

8,699

4.6

Gain on cancellation of insurance contracts....
Reversal of allowance for doubtfulreceivables .....................................................

--

20

20

--

1

--

Gain from sale of fixed assets..........................

--

--

15

Gains from cancellation in the previous term...

--

--

92

Gain on insurance claims ................................

13

6

--

Gain on sale of investment securities ..............

--

12

--

Other ...............................................................

--

6

17

Total extraordinary profit .................................

13

0.0

47

0.1

146

0.1

Extraordinary losses
Loss on disposal of fixed assets2 ....................

92

168

330

Provision for directors' retirement allowance
reserve for previous years ............................

376

--

--

Provision for merchandize warranties
reserve for previous years ............................

185

--

--

Other...............................................................

23

Total extraordinary losses ...............................

677

0.7

168

0.2

350

0.2

Income before taxes, etc.................................

2,237

2.5

4,657

5.3

8,495

4.5

Income tax, inhabitants tax and enterprisetax.................................................................

1,416

1,903

3,669

Corporate tax adjustment ................................

(203)

13

126

Total tax and adjustments...............................

1,212

1.3

1,916

2.2

3,795

2.0

Minority interests.............................................

(17)

0.0

34

0.0

49

0.0

Net income .........................................................

1,042

1.2

2,707

3.1

4,650

2.5

－ 9 －

--

19

Changes in Consolidated Interim Shareholders’ Equity March 1, 2008 to August 31, 2008
Millions of yen
Shareholders’ equity
CapitalBalance as of February 29, 2008

Capital surplus

Retained profit

4,032

22,833

4,157

Treasury stock

Total shareholders’ equity(10,678)

20,344

Change during interim accounting period
Surplus dividend

(834)

(834)

Interim net income

1,042

1,042

Acquisition of treasury stock

00Changes to items other thanshareholders’ equity during the interim

--

--

--

--

--

--

--

207

0

207

4,157

4,032

23,040(10,678)

20,552

accounting period
Total change during interim accounting
periodBalance as of August 31, 2008

Valuation and differences due to foreign exchange
Valuation

Total valuation anddifferences on

Adjustment due totranslation

other marketableexchange rateadjustments

Warrants for new
sharesMinority interests

Total net assets

400

20,769securities
Balance as of February 29, 2008

7

13

20

4

Change during interim accounting
periodSurplus dividend(834)Interim net income

1,042

Acquisition of treasury stock0

Changes to items other thanshareholders’ equity during the

(22)

18

(3)

0

(23)

(26)

(22)

18

(3)

0

(23)

181

(14)

32

17

4

376

20,951interim accounting period
Total change during interim
accounting period
Balance as of August 31, 2008

－ 10 －

Changes in Consolidated Interim Shareholders’ Equity March 1, 2007 to August 31, 2007
Millions of yen
Shareholders’ equity
CapitalBalance as of February 28, 2007

Capital surplus
4,157

Retained profit

4,032

Treasury stock

20,283

Total shareholders’ equity(9,540)18,932

Change during interim accounting period
Surplus dividend

(909)

(909)

Interim net income

2,707

2,707

Acquisition of treasury stock
Disposal of treasury stock(126)

Decrease in retained profit followingchanges to the scope of consolidation
Increase in retained profit followingchanges to the scope of consolidation(1,320)(1,320)

182

56

(174)

(174)

78

78

Changes to items other thanshareholders’ equity during the interim

―

―

―

―

―

―

―

1,574

(1,137)

437

4,157

4,032

21,858(10,678)

19,369accounting period
Total change during interim accounting
periodBalance as of August 31, 2007

Valuation and differences due to foreign exchange
Valuation

Total valuation anddifferences on

Adjustment due totranslation

other marketableexchange rateadjustments

Warrants for new
sharesMinority interests

Total net assets

366

19,303securities
Balance as of February 28, 2007

6

(2)

3

1

Change during interim accounting
periodSurplus dividend(909)

Interim net income

2,707

Acquisition of treasury stock(1,320)

Disposal of treasury stock56

Decrease in retained profit(174)

following changes to the scopeof consolidation
Increase in retained profit

78

following changes to the scopeof consolidation
Changes to items other thanshareholders’ equity during the

1

(0)

0

1

21

23

1

(0)

0

1

21

461

8

(3)

4

2

387

19,764interim accounting period
Total change during interim
accounting period
Balance as of August 31, 2007

－ 11 －

Changes in Consolidated Shareholders’ Equity March 1, 2007 to February 29, 2008
Millions of yen
CapitalBalance as of February 28, 2007

4,157

Capital surplus

Retained profit

4,032

20,283

Treasury stock

Total shareholders’ equity(9,540)18,932

Change during the period
Surplus dividend(1,744)(1,744)

Net income

4,650

4,650

Acquisition of treasury stock
Disposal of treasury stock(1,320)(1,320)

182

56

(126)

Decrease in retained profit
following changes to the scope

(309)

(309)

78

78

of consolidation
Increase in retained profit
following changes to the scope of
consolidation
Changes to items other than
－

－

－

－

－

－

－

2,549

(1,137)

1,411

4,157

4,032

22,833(10,678)

20,344

shareholders’ equity during theperiod (net)Total change during period
Balance as of February 29, 2008

Valuation and differences due to foreign exchange
Valuationdifferences on

Adjustment due toother marketableexchange rate

Total valuation andWarrants for new

translation

sharessecurities
Balance as of February 28, 2007

6

(2)

Minority interests

Total net assets

366

19,303

adjustments
3

1

Change during the period
Surplus dividend(1,744)

Net income

4,650

Acquisition of treasury stock(1,320)

Disposal of treasury stock56

Decrease in retained profit
following changes to the(309)

scope of consolidation
Increase in retained profit
following changes to the78

scope of consolidation
Changes to items other thanshareholders’ equity during the

1

15

17

3

33

53

Total change during period

1

15

17

3

33

1,465

Balance as of February 29, 2008

7

13

20

4

400

20,769period (net)－ 12 －

Consolidated Statements of Cash flows

Millions of yen
March 1, 2007 to
February 29, 2008

March 1, 2008 to
August 31, 2008

March 1, 2007 to
August 31, 2007

2,237
1,113
23
59
-243
399
(10)
82
-71
--(3,971)(3,340)
1,334
(177)
4
(872)
(2,803)10(82)(1,246)(4,121)

4,657
1,069
290
127
(20)
--(8)
53
-168
1
(73)
1,459
(701)
(982)
(411)
(133)
(323)
5,173
8
(53)
(2,825)
2,303

8,495
2,342
109
174
---(5)
140(15)
330--(2,267)(2,588)
169
(601)
(89)
509
6,705
5
(140)
(5,214)
1,354(1,416)
192
(165)
(50)
(1)
1
95
(1,344)(838)-(476)-(225)
10(210)(1,741)(1,946)
116
(824)
(0)
(3)
3
(305)
(2,960)

5,761
(125)
100
(0)
-(834)(5)-4,895(3,440)(50)
3,000(1,320)
56
(909)
(5)
(6)
(2,676)

(471)
(986)
4,661
(1,320)56(1,744)
(5)
(10)
177

18

--

6

(551)
3,639

(2,114)
4,855(1,421)
4,855

--

186

205

3,088

2,927

3,639

I. Cash flow from operating activities
Income before taxes, etc. .................................................................
Depreciation......................................................................................
Increase in reserve for bonuses .......................................................
Increase in allowance for doubtful accounts.....................................
Increase (decrease) in insurance reserves.......................................
Increase in reserve for product warranties .......................................
Increase in reserve for directors’ retirement benefit .........................
Interest and dividends received ........................................................
Interest paid ......................................................................................
Gain on sale of fixed assets..............................................................
Loss on disposal of fixed assets .......................................................
Amortization of goodwill....................................................................
Payment of directors’ bonuses .........................................................
Decrease (increase) in accounts receivable.....................................
Decrease (increase) in inventory ......................................................
Increase (decrease) in accounts payable .........................................
Decrease (increase) in operating loans ............................................
Increase (decrease) in accrued consumption tax .............................
Other.................................................................................................
Subtotal.............................................................................................
Interest and dividends received ........................................................
Interest paid ......................................................................................
Corporate taxes paid ........................................................................
Cash flow from operating activities ..............................................
II. Cash flow from investing activities
Payments for purchase of tangible fixed assets ...............................
Proceeds from sale of tangible fixed assets .....................................
Payments for acquisition of intangible fixed assets ..........................
Payments for acquisition of shares of affiliates.................................
Amounts lent.....................................................................................
Proceeds from repayment of loans...................................................
Increase (decrease) in deposits and guarantee payments...............
Cash flow from investing activities...............................................
III. Cash flow from financing activities
Net increase (decrease) in short term borrowings............................
Repayment of long-term loans..........................................................
Proceeds from long-term loans.........................................................
Payments for acquisition of treasury stock .......................................
Proceeds from disposal of treasury stock.........................................
Payment of dividends .......................................................................
Dividends paid to minority shareholders...........................................
Repayments to minority shareholders ..............................................
Cash flow from financing activities ..............................................
IV. Cash and cash equivalents currency translationdifferences..................................................................................
V. (Decrease) increase in cash and cash equivalents ...................
VI. Cash and cash equivalents at beginning of period ..................
VII. Increase in cash and cash equivalents from change inscope of consolidation ..............................................................
VIII. Cash and cash equivalents at end of period...........................

－ 13 －

Material Items Forming the Basis for the Preparation of theInterim Consolidated Financial Statements
Item
1.Items relating to
the scope of
consolidation

March 1, 2008 –March 1, 2007 –March 1, 2007 –August 31, 2008

August 31, 2007

February 29, 2008

(1) Number of consolidated(1) Number of consolidated
subsidiaries: 13
subsidiaries: 9
G-One Financial Services
G Trading Co., Ltd.
Co., Ltd.
G One Financial Services
G-Care Kyousaikai
Co., Ltd.
Gulliver Europe Ltd.
Gulliver Europe Ltd.
G-One Credit Services
Hucobo Co., Ltd.
Co., Ltd.
Samurai Motors Co.
G-Trading Co., Ltd.
G-Bus Co., Ltd.
G-Bus Co., Ltd.
Carbross Co., Ltd.
Samurai Motors Co.
TAKEOFF Co., Ltd.
G-Trading Rus LLC
G-Trading Rus LLC
G-Rental Co., Ltd.
G-Care Kyousaikai
Hucobo Co., Ltd.
Takeoff Co., Ltd.
Gulliver USA, Inc.
Gulliver East, Inc.

(1) Number of consolidated
subsidiaries: 13
G-One Financial Services
Co., Ltd.
G-Care Kyousaikai
Gulliver Europe Ltd.
G-One Credit Services
Co., Ltd.
G-Trading Co., Ltd.
G-Bus Co., Ltd.
Samurai Motors Co.
G-Trading Rus LLC
G-Rental Co., Ltd.
Hucobo Co., Ltd.
Takeoff Co., Ltd.
Gulliver USA, Inc.
Gulliver East, Inc.

(Change in scope of(Change in scope of
consolidation)
consolidation)
Of the above G-CareOf the above G-Care
Kyousaikai has been included Kyousaikai, Gulliver USA, Inc.
and Gulliver East, Inc. havein the scope of consolidation
been included in the scope ofsince its significance has
increased during the fiscal year. consolidation since theirsignificance has increased
Carbross Co., Ltd. has been
during the fiscal year. As a
excluded from consolidation
result of an acquisition of shares
since its significance has
in G-Rental Co., Ltd. during thedecreased during the fiscal
consolidated fiscal year andperiod.
having newly established
G-One Credit Services Co.,
Ltd., both companies have been
included in the scope of
consolidation. However,
Carbross Co., Ltd. has been
excluded from consolidation
since its significance has
decreased during the fiscal
period.
(2) Main non-consolidated(2) Main non-consolidated(2) Main non-consolidated
subsidiaries:
subsidiaries:
subsidiaries:
Carbross Co., Ltd.
Gulliver USA, Inc.
Carbross Co., Ltd.
G One Insurance Service
Carbross Co., Ltd.
G One Insurance Service
Co., Ltd.
Co., Ltd.
Reasons for exclusion from
Reasons for exclusion from
Reasons for exclusion fromconsolidation:
consolidation:
consolidation:
Carbross Co., Ltd. and G One
Gulliver USA, Inc. andCarbross Co., Ltd. and G One
Insurance Service Co., Ltd. are Carbross Co., Ltd. are small
Insurance Service Co., Ltd. aresmall and their total assets,
and their total assets, sales, net small and their total assets,
sales, net income and retained income and retained profit, etc., sales, net income and retained
profit, etc., do not significantly
do no t significantly affect the
profit, etc., do not significantly
affect the consolidated financial consolidated financial
affect the consolidated financial
statements.
statements.
statements.

－ 14 －

Item

March 1, 2008 –March 1, 2007 –March 1, 2007 –August 31, 2008

August 31, 2007

February 29, 2008

2. Application of the Non-consolidated subsidiaries
equity method
and affiliates to which the equity
method is not applied:
UG Powers Co., Ltd.
Carboss Co., Ltd.
G One Insurance Service
Co,. Ltd.
As at right

3. Items relating tothe (interim)
settlement datesof consolidated
subsidiaries

Non-consolidated subsidiaries
and affiliates to which theequity method is not applied:Gulliver USA, Inc.
Carbross Co., Ltd.
UG Powers Co., Ltd.

Reasons for not applying theequity method:
The effect of the company on
net income and retained profit
is immaterial and its overall
importance is low.
Consolidated subsidiaries with
Consolidated subsidiaries witha interim settlement date thata interim settlement date thatdiffers from the Consolidated
differs from the Consolidated
Settlement Date as follows:
Settlement Date as follows:
As at right(Settlement date of June 30)
Gulliver Europe Ltd.
Samurai Motors Co.
G-Trading Rus LLC
In the case of the above 3
companies, as the gap does
not exceed 3 months,
consolidation is performed
based on provisional
statements. For materialtransactions occurring
between the settlement dates
necessary, consolidation
adjustments are made.

Items relating toaccounting
treatment
1) Valuation(i) Marketable securities
criteria andBonds intended to be held tovaluation
maturity:
methods for
As at rightmaterial assets

Non-consolidated subsidiaries
and affiliates to which theequity method is not applied:
UG Powers Co., Ltd.
Carboss Co., Ltd.
G One Insurance Service
Co,. Ltd.
As at left

Consolidated subsidiaries
with a settlement date thatdiffers from the Consolidated
Settlement Date as follows:(Settlement date of December
31)
Gulliver Europe Ltd.
Samurai Motors Co.
G-Trading Rus LLC
In the case of the above 3
companies, as the gap does
not exceed 3 months,
consolidation is performed
based on provisional
statements. For materialtransactions occurring
between the settlement dates
necessary, consolidation
adjustments are made..

4.

(i) Marketable securities(i) Marketable securities
Bonds intended to be held to
Bonds intended to be held tomaturity:
maturity:
Amortizing cost method
As at left
(straight line)

Other marketable securitiesThose with a market price:
As at right

Other marketable securities
Other marketable securitiesThose with a market price:
Those with a market price:
Valued by the market method
As at left
based on the market price asat the accounting date.
Valuation gains or losses aretaken direct to net assets andthe book value is determinedby moving average method.

Those without a market value:
As at rightThose without a market value:
The cost method using themoving average method
Shareholdings in subsidiaries:
The cost method using themoving average method

Shareholdings in subsidiaries:
As at right－ 15 －

Those without a market value:
As at left
Shareholdings in subsidiaries:
As at left

Item

March 1, 2008 –March 1, 2007 –March 1, 2007 –August 31, 2008

August 31, 2007

February 29, 2008(ii) Derivatives
As at right(iii) Inventories
A. Merchandise:
Vehicles: As at right
Other: As at right2) Depreciation
methods
applied tomaterial
depreciable
assetsB. Supplies:
As at right(i) Tangible Fixed Assets
As at right(ii) Derivatives(ii) Derivatives
Market price method
As at left(iii) Inventories(iii) Inventories
A. Merchandise:
A. Merchandise:
Vehicles: Actual cost method
Vehicles: As at right
Other: First in first out method
Other: As at rightappliedB. Supplies:
B. Supplies:
Final cost method applied
As at right(i) Tangible Fixed Assets(i) Tangible Fixed Assets
Declining Balance Method is
As at left
applied. However, for buildings(excluding attached equipment)
acquired since April 1, 1998,
the Straight Line Method has
been applied. The useful lives are
as follows:
Buildings and Structures: 15 – 20
years

(Additional information)
Following the revision to the
Corporate Tax Law, for tangible
fixed assets acquired on or
before March 31, 2007, thebalance of an amount equivalent
to 5% of the acquisition value
and the memorandum price isdepreciated using the straightline method and are recorded as
depreciation expenses for aperiod of five years, starting in
the consolidated fiscal year after
the fiscal year in which
depreciation based on a method
stipulated in pre-revisionCorporate Tax Law reaches 5%of the acquisition value.
The effects of this change on
operating income, ordinary
income or net income before
adjustment for income taxes isimmaterial.
(ii) Intangible Fixed Assets
As at right3) Treatment ofdeferred
assets(ii) Intangible Fixed Assets(ii) Intangible Fixed Assets
The Straight Line Method is
As at rightapplied. However, with respect tosoftware for internal use, theStraight Line Method based on
useful lives for internal use (5years) has been applied.

(iii) Long Term Prepaid Expenses (iii) Long Term Prepaid Expenses (iii) Long Term Prepaid Expenses
As at right
The Straight Line Method is
As at left
appliedShare issue expenses
Share issue expenses
Share issue expenses
As at rightExpensed in their entirety at the
As at lefttime of expenditure－ 16 －

Item
4) Criteria forrecordingmaterial
reserves

March 1, 2008 –March 1, 2007 –March 1, 2007 –August 31, 2008

August 31, 2007

February 29, 2008(i) Reserve for Doubtful
Accounts
As at right(ii) Reserve for Bonuses
As at right(iii) Reserve for Directors’
Bonuses(i) Reserve for Doubtful Accounts (i) Reserve for Doubtful
Accounts
To prepare for the losses
As at left
occurring from bad debts, withrespect to general claims theactual bad debt to loan rate isapplied. Specific claims, such as
those where there are concernson the probability of recovery,
are assessed on an individual
basis and estimatedunrecoverable amounts arerecorded.
(ii) Reserve for Bonuses
To prepare for the payment ofbonuses to employees,
amounts are recorded based on
the estimated payment amount.
(iii) Reserve for Directors’
Bonuses(iv) Reserve for Directors’
Retirement Benefit
In order to prepare for payments
for the retirement benefits for
directors, the necessary
allowance amount as of theinterim balance sheet date isaccounted for in accordance withthe rules for reserves for
director’s retirement benefit.

-----------------(Change to accounting policies)
Previously, payments for
retirement benefits for directors
were treated as expenses attime of payment.
However, as of the fiscal year
ending February 28, 2009, therequired amount of retirement
benefits for directors at the endof the consolidated interim
period will be based on theretirement benefits for directors’
rules and will be recorded as
reserve for directors’ retirement
benefit.
This change follows the adoptionof revisions to the treatment for
Auditing of Reserve underSpecial Taxation Measures Law,
Allowance or Reserve underSpecial Laws (JICPA Audit andAssurance Practice Committee
Report No. 42) announced April
13, 2007 by the JICPA.

－ 17 －(ii) Reserve for Bonuses
As at left(iii) Reserve for Directors’
BonusesAmount based on forecasted
provisional amount in
preparation for payment ofbonuses to directors.
-----------------

Item

March 1, 2008 –March 1, 2007 –March 1, 2007 –August 31, 2008

August 31, 2007

February 29, 2008

In comparison with the former
method, operating income andordinary income are ¥23 million
lower and net income is ¥399
million lower as a result of thischange.
(v) Merchandize Warranty
Reserve
In preparation for losses on
repairs of cars with warranties,
estimated warranty amounts
for the warranty period areaccounted for based on actual
prior results.
(Change to accounting
policies)
Previously, warranty reserves
were expensed at the time of
payment. However, as of the
fiscal year ending February 28,
2009, estimated future warranty
payments will be accounted foras the merchandize warranty
reserve.
This change follows theapplication of revisions to thetreatment for Auditing ofReserve under Special Taxation
Measures Law, Allowance or
Reserve under Special Laws
(JICPA Audit and Assurance
Practice Committee Report No.
42) announced April 13, 2007
by the JICPA.
In comparison to the former
method, operating income andordinary income are ¥58
million lower and income
before taxes, etc. is ¥243
million lower as a result of thischange.

－ 18 －

Item5)Translation ofmajor currency
assets andliabilities
valuations heldby consolidated
companies andothers during theperiod underreview and forthe preparationof the financial
report for theperiod underreview

6) Treatment ofmaterial leasetransactions

7) Material hedge
accounting

March 1, 2008 –March 1, 2007 –March 1, 2007 –August 31, 2008

August 31, 2007

February 29, 2008

Valuations of foreign bonds andValuations of foreign bonds andmonetary liabilities are translated monetary liabilities are translated
to Japanese yen using the spot
to Japanese yen using the spot
exchange rate on the date ofexchange rate on the date ofsettlement. Differences aresettlement. Differences arerecorded as either a gain or loss. recorded as either a gain or loss.
Valuations of assets and liabilities Valuations of assets and liabilities
of existing subsidiaries and others of existing subsidiaries and others
are translated to Japanese yen
are translated to Japanese yen
using the spot exchange rate on
using the spot exchange rate on
the date of settlement andthe date of settlement, andrevenues and expenses arerevenues and expenses aretranslated into Japanese yen usingtranslated into Japanese yen
using an average spot rate for the an average spot rate for theperiod. Translation differences are period. Translation differences arerecorded under net assets in therecorded under net assets in theminority interests, and valuation
minority interests, and valuationand translation adjustments
and translation adjustments
sections.
sections.
As at right
Financing leases other than those
As at left
lease assets whose title isdeemed to pass to the lessee
have been accounted for inaccordance with methods applied
to normal lease transactions.
(i) Method of Hedge Accounting (i) Method of Hedge Accounting(i) Method of Hedge Accounting
According to Deferred Hedge
As at right
As at left
Method. However, special
methods are employed for interest
rate swap transactions that meet
specifications for special methods.
As at right(ii) Hedging Tools and Hedge
Target
As at right(ii) Hedging Tools and Hedge(ii) Hedging Tools and Hedge
Targets
TargetHedging Tools – Interest Rate
As at left
Swaps
Hedge Targets – Interest on
borrowings(iii) Hedging Policy
As at right(iii) Hedging Policy(iii) Hedging Policy
Interest Rate Swap transactions
As at leftare entered into for the purpose ofhedging the risk of interest rate
fluctuation on borrowings andentered into only for the target
obligations.

(iv) Method of evaluating hedge
effectivenessAs at right(iv) Method of evaluating hedge(iv) Method of evaluating hedge
effectivenesseffectivenessAs at left
Evaluations of hedge
effectiveness are based on acomparison of the total amountof market volatility and cash flow
volatility of hedging tools andcompared to total market pricevolatility and cash flow volatilityof hedge targets. However,
evaluation of the effectiveness of
special interest rate swaps that
depend on special handling
methods has been omitted.

－ 19 －Item
8) Other material
items in the
preparation of theinterimconsolidated
financialstatements

5. Definition of cashin the consolidated
statements ofcash flow

March 1, 2008 –March 1, 2007 –March 1, 2007 –August 31, 2008

August 31, 2007

February 29, 2008

Accounting treatment for
Consumption Tax

Accounting treatment for
Consumption Tax

Accounting treatment for
Consumption Tax

As at right

As at rightTax Exclusion Method is applied Tax Exclusion Method isin the accounting treatment ofapplied in the accounting
consumption tax.
treatment of consumption tax
Further, provisional receipts ofconsumption tax are offset against
provisional payments and shown
under ‘Others’ in Current
Liabilities.
Cash on hand, deposits that
As at left
can be withdrawn as needed, andshort term investments that areeasily convertible into cash andthat have low risk of fluctuation invalue and whose maturities are 3
months or less at the date ofacquisition.

－ 20 －

Changes in Accounting Treatment
March 1, 2008 – August 31, 2008

March 1, 2007 – August 31, 2007

March 1, 2007 – February 29, 2008--------------------

Changes to the depreciation method oftangible fixed assets
From the interim period of the fiscal year
ended February 29, 2008, in accordancewith the revision of Corporation Tax Law(Law Concerning the Partial Revision ofIncome Tax No. 6, issued on March 30,
2007 and Government OrdinanceConcerning the Partial Revision of
Corporation Tax Law Order No. 83,
issued on March 30, 2007), the methodof depreciation of tangible fixed assets
acquired after April 1, 2007 has beenrevised. The effects of this change on
operating income, ordinary income or net
income before adjustment for income
taxes is immaterial.

Changes to the depreciation method oftangible fixed assets
From the period of the fiscal year ended
February 29, 2008, in accordance withthe revision of Corporation Tax Law(Law Concerning the Partial Revision ofIncome Tax No. 6, issued on March 30,
2007 and Government OrdinanceConcerning the Partial Revision of
Corporation Tax Law Order No. 83,
issued on March 30, 2007), the methodof depreciation of tangible fixed assets
acquired after April 1, 2007 has beenrevised. The effects of this change on
operating income, ordinary income or net
income before adjustment for income
taxes is immaterial.

Changes to method of presentation
March 1, 2008 – August 31, 2008

March 1, 2007 – August 31, 2007

Consolidated statements of income
In the consolidated financial report for the interim period of
the fiscal year ended February 29, 2008, gain on foreignexchange was included in ‘other’ under non-operating
income. However, since the amount has become more than
10% of non-operating income it has been separately
disclosed in the current interim consolidated financial report.
Gain from foreign exchange in the previous interim period
was ¥4 million.

------------

Notes(Related to the consolidated balance sheets)
March 1, 2008– August 31, 2008

March 1, 2007– August 31, 2007

March 1, 2007– February 29 2008

*1 Total accumulated depreciation of*1 Total accumulated depreciation of*1 Total accumulated depreciation of
tangible fixed assets:tangible fixed assets:tangible fixed assets:¥5,175 million¥4,116 million¥4,574 million－ 21 －

March 1, 2008– August 31, 2008

March 1, 2007– August 31, 2007

Millions of yen
March 1, 2008– February 29 2007

1. Principal components of SGA expenses

1. Principal components of SGA expenses

1. Principal components of SGA expenses(Related to the consolidated statements of income)Advertising
Contracting fees

2,496

Advertising

954

2,292

Contracting fees

902

5,557

Contracting fees

1,934

Salaries

4,889

Salaries

4,042

Salaries

8,634

Bonuses

70

Bonuses

215

Bonuses

1,294Transfer to allowance for894

Transfer to allowance forTransfer to allowance forbonusesbonusesbonuses
Transfer to reserve forTransfer to allowance for721

Depreciation

23

director’s retirement benefit

Rent

69

Transfer to reserve for

1,069

Depreciation

1,113

Rent

2,554

Components of losses on disposal of fixed
assets2.

2,337Components of losses on disposal of
fixed assets

573
63

director’s bonuses

doubtful accounts

2.

Advertising2.

Depreciation

2,342

Rent

4,481

Components of losses on disposal of fixed
assetsBuildings and structures

5

Buildings and structures

61

Buildings and structures

224

Tools & equipment

8

Tools & equipment

9

Tools & equipment

22

Software8

Software65

Software24

Long-term prepaid expenses

32

Long-term prepaid expenses

0Long-term prepaid expenses

0

Restoration expenses

37

Restoration expenses

24

Restoration expenses

57

Others2

Others7

Others

1

Total

92

Total

168

Total

330

－ 22 －

Changes to Consolidated Interim Shareholders’ Equity
March 1, 2008 to August 31, 2008
Category and number of ordinary and treasury shares in issuanceThousands of shares
No. of shares at theend of the previous
fiscal year

Increase in number ofshares during theinterim period

Decrease in numberof shares during theinterim period

Number of shares at the end of
the interim period

Shares outstanding
Ordinary shares

10,688----

10,688

Total

10,688----

10,688

Ordinary shares

1,091

0

--

1,091

Total

1,091

0

--

1,091

Treasury stock

Note: The increase in treasury shares is due to an acquisition of shares totaling less than one trading unit
Warrants for new shares and warrants for treasury stock
Classification

Millions of yen

Breakdown of warrants

Consolidated subsidiaries

Balance at the end of the interim period

Stock option of share warrants

4

Total

4

Dividends
Amount of dividends paid
Resolution

Share
category

Regular meeting ofshareholders (May 28,
2008

OrdinarysharesTotal dividend(millions of yen)

Dividend pershare (¥)

834

87.0

Base date

Effective dateFebruary 29, 2008

May 29, 2008

Dividend payments for which the base date falls within the interim period under review but for which the effective date follows
the end of the period
Total
Share
Dividend
Dividend per
dividend
Resolution
Base date
Effective datecategory(millions ofsourceshare (¥)
yen)
Board
Ordinary
Retainedmeeting393
41
August 31, 2008
November 13, 2008
sharesearnings(October17, 2007－ 23 －

Changes to Consolidated Interim Shareholders’ Equity
March 1, 2007 to August 31, 2007
Category and number of ordinary and treasury shares in issuanceThousands of shares
No. of shares at theend of the previous
fiscal year

Increase in number ofshares during theinterim period

Decrease in numberof shares during theinterim period

Number of shares at the end of
the interim period

Shares outstanding
Ordinary shares

10,688----

10,688

Total

10,688----

10,688

Ordinary shares

909

200

17

1,091

Total

909

200

17

1,091

Treasury stock

Note: The increase in treasury shares is due to the decision by the Board of directors to acquire 200,000 shares.
The decrease in treasury shares is due to the exercising of 17,000 warrants.
Warrants for new shares and warrants for treasury stock
Classification

Millions of yen

Breakdown of warrants

Consolidated subsidiaries

Balance at the end of the interim period

Stock option of share warrants

2

Total

2

Dividends
Amount of dividends paid
Resolution

Share
category

Total dividend(millions of yen)

Regular meeting ofshareholders (May 23,
2007

Ordinaryshares909

Dividend pershare (¥)
93

Base date

Effective dateFebruary 28, 2007

May 24, 2007

Dividend payments for which the base date falls within the interim period under review but for which the effective date follows
the end of the period
Total
Share
Dividend
Dividend per
dividend
Resolution
Base date
Effective datecategory(millions ofsourceshare (¥)
yen)
Board
Ordinary
Retainedmeeting834
87
August 31, 2007
November 13, 2007
sharesearnings(October17, 2007－ 24 －

Changes to shareholders’ equity and other items
Consolidated fiscal year March 1, 2007 to February 29, 2008
1. Number and types of shares issued as of fiscal year ended February 29, 2008
Number of sharesat end of previous
fiscal year

(Thousands of shares)

Increase

Decrease

Number of shares at
end of current fiscal
year

Shares outstanding
10,688－－

10,688

Total

10,688－－

10,688

Ordinary shares1,2

909

200

17

1,091

Total

909

200

17

1,091

Ordinary shares
Treasury stock(Note) 1. The increase of 200,000 in ordinary shares of treasury stock results form a market purchase authorized by adecision by the board of directors.
2. The 17,000 decrease in ordinary shares of treasury stock is a result of stock options exercised.
2.

Information on new share warrants at end of fiscal year ended February 29, 2008
(Millions of yen)

Balance at endof fiscal year

Classification

Breakdown of warrants

Consolidated
subsidiaries

Stock options of share warrants

4

Total

4

3. Items related to dividends(1) Dividend payments
Total dividends Dividend per(Millions of yen) share (¥)

ShareResolution

category

Date of record

Effective date

May 23, 2007
Regular shareholders’ meeting

Ordinaryshares909

93.00

February 28, 2007

May 24, 2007

October 17, 2007
Meeting of the board of directors

Ordinaryshares834

87.00

August 31, 2007

November 13, 2007

(2) Of dividends for which the record date is in the current fiscal year, those for which the effective date is in the following
fiscal year.
Share
Resolution

category

May 28, 2008
Regular shareholders’ meeting

OrdinarysharesTotal dividends(Millions of yen)

DividendsourceDividend pershare (¥)

Base date

Effective date

834

Retainedearnings

87.00

February29, 2008

May 29, 2008

－ 25 －

Millions of yen(Related to the consolidated statements of cash flow)
March 1, 2008 – August 31, 2008
(1) Balance of cash and cash
equivalents and other items at endof term

March 1, 2007 – August 31, 2007

March 1, 2007 - February 29, 2008

(1) Balance of cash and cash equivalents andother items at end of term

(1) Balance of cash and cash equivalents
and other items at end of term

Cash and deposit accounts

3,088

Cash and cash deposit accounts

2,927

Cash and cash deposit accounts

3,639

Cash and cash equivalents

3,088

Cash and cash equivalents

2,927

Cash and cash equivalents

3,639

Lease, marketable securities, derivative transactions, stock options, etc., tax accounting, transactions with relatedparties and items related to business integration
These items are of limited importance and have therefore been omitted.

－ 26 －

4. Segment Information by business typeInterim period of the fiscal year ending February 28, 2009 (March 1, 2008 to August 31, 2008)
Trading of

Financing

Elimination/
Other businessused cars

Millions of yen

Totalbusiness

Consolidated
All company

Sales(1) Sales to external
84,695

2,223

4,092

91,011--91,011

751

705

1,525

2,981

(2,981)--

Total

85,447

2,928

5,617

93,992(2,981)91,011

Operating expenses

81,294

2,832

4,215

88,342(139)

88,203Operating income

4,152

96

1,401

5,650

(2,842)

2,807

customers(2) Inter-segmental sales
or transfers

Notes:
1. Method of business classification: Businesses have been classified according to the classification used in calculating sales.
2. Names of principal products or services attributable to each business classification:

Business Classification

Principal Product Name or Service Name

Used Car Sales

Purchase and sales of used automobiles through directly operated outlets and the like.

Financing business

Consolidated subsidiary G-One Financial Services Co., Ltd. provides financing services such as
auto-loans

Other businessRoyalties arising out of franchise agreements and fees for the provision of training etc., andintermediation in buying and selling of used automobiles, fees arising from financial business and otherbusiness.

3.

Amount and principal content included in the “Elimination or Total Company” item
March 1, 2008 –Millions of yen
Principal content

August 31, 2008

Amount of operating
expense which cannot
be allocated to asegment

2,842

Expenses relating to head office administration at the parent
company－ 27 －

Interim period of the fiscal year ended February 29, 2008 (March 1, 2007 to August 31, 2007)
Millions of yen

Trading of

Financing

Elimination/
Other businessused cars

Totalbusiness

Consolidated
All company

Sales(2) Sales to external
81,532

1,975

3,719

87,226--87,226

438

283

1,177

1,899

(1,899)--

Total

81,970

2,258

4,896

89,125(1,899)87,226

Operating expenses

75,994

2,043

3,593

81,631

842

82,474

Operating income

5,975

215

1,302

7,494

(2,741)

4,752

customers(2) Inter-segmental sales
or transfers

Notes:
1. Method of business classification: Businesses have been classified according to the classification used in calculating sales.
2. Names of principal products or services attributable to each business classification:

Business Classification

Principal Product Name or Service Name

Used Car Sales

Purchase and sales of used automobiles through directly operated outlets and the like.

Financing business

Consolidated subsidiary G-One Financial Services Co., Ltd. provides financing services such as
auto-loans

Other businessRoyalties arising out of franchise agreements and fees for the provision of training etc., andintermediation in buying and selling of used automobiles, fees arising from financial business and otherbusiness.

3.

Amount and principal content included in the “Elimination or Total Company” item
March 1, 2007 –Millions of yen
Principal content

August 31, 2007

Amount of operating
expense which cannot
be allocated to asegment

2,741

Expenses relating to head office administration at the parent
company－ 28 －

Fiscal year ended February 29, 2008 (March 1, 2007 to February 29, 2008)
Millions of yen

Trading of

Financing

Elimination/
Other businessused cars

Totalbusiness

Consolidated
All company

Sales(1) Sales to external
178,445

4,503

7,632

190,592--

190,592

987

623

2,908

4,518

(4,518)--

Total

179,443

5,126

10,540

195,111(4,518)

190,592

Operating expenses

168,048

4,980

7,840

180,869

1,024

181,893

Operating income

11,394146

2,700

14,241(5,543)

8,698

customers(2) Inter-segmental sales
or transfers

Notes:
1. Method of business classification: Businesses have been classified according to the classification used in calculating sales.
2. Names of principal products or services attributable to each business classification:

Business Classification

Principal Product Name or Service Name

Used Car Sales

Purchase and sales of used automobiles through directly operated outlets and the like.

Financing business

Consolidated subsidiary G-One Financial Services Co., Ltd. provides financing services such as
auto-loans

Other businessRoyalties arising out of franchise agreements and fees for the provision of training etc., andintermediation in buying and selling of used automobiles, fees arising from financial business and otherbusiness.

3.

Amount and principal content included in the “Elimination or Total Company” item
March 1, 2007 –Millions of yen
Principal content

February 29, 2008

Amount of operating
expense which cannot
be allocated to asegment

5,543

Expenses relating to head office administration at the parent
company－ 29 －

Material subsequent events
March 1, 2008 –March 1, 2007 –March 1, 2007 –August 31, 2008

August 31, 2007

February 29, 2008----------------------------------------

Transactions in treasury stock
At a meeting of the Board of Directors
held October 17, 2008, it was decided
that treasury shares will be acquired
based on a reinterpretation of Company
Law 156 in accordance with stipulations
in Company Law 165, Chapter 3. An
outline follows:(1) Reasons for acquisition of treasury
stock:
To maintain our flexible capital policy inresponse to changes in the operating
environment.
(2) Details of acquisition:-Type of shares: common shares-Number of shares: up to 500,000
shares-Total acquisition cost: Up to ¥1,000
million-Acquisition period: October 20, 2008
to November 20, 2008
-Acquisition method: Market purchaseon the Tokyo Stock Exchange－ 30 －

Non-consolidated Balance Sheet
As of
August 31, 2008ASSETS%

As of
August 31, 2007%

Millions of yen
As ofFebruary 29, 2008%

Current assets
Cash and deposits ............................

1,396

1,583

2,004

Accounts receivable .........................

4,714

3,918

5,125

Inventory...........................................

5,869

3,471

4,001

Deferred tax assets...........................

458

692

344

Others...............................................

1,411

1,651

1,122

Allowance for doubtful accounts .......

(6)

(87)

(7)

Total current assets.......................

13,84534.0

11,22929.8

12,592

35.6

Fixed assets
Tangible fixed assets*1
Buildings & structures........................

7,810

7,799

7,595

Tools, fixtures & equipment ...............

986

1,183

1,055

Land...................................................

327

327

327

Others................................................

272

109

124

Total tangible fixed assets.............

9,397

23.1

9,418

25.0

9,103

25.7

Intangible fixed assets
Software ............................................

1,450

1,914

1,673

Others................................................

159

140

170

Total intangible fixed assets ..........

1,610

3.9

2,055

5.4

1,845

5.2

Investments and other assets
Investment securities .........................

50

100

98

Shares of affiliates .............................

2,163

2,061

2,267

Long-term loans to affiliates*2 ............

7,406

6,500

3,116

Deposits and guarantee money .........

3,101

3,404

3,035

Construction cooperation money .......

2,973

2,852

3,180

Deferred tax assets............................

282

91

238

Others................................................

118

203

157

Allowance for doubtful accounts ........

(191)

(199)

(257)

Total investment and other assets...

15,90539.0

15,01339.8

11,837

33.5

Total fixed assets ..........................

26,91266.0

26,48770.2

22,785

64.4

Total Assets........................................

40,757100.0

37,717100.0

35,378100.0－ 31 －

Non-consolidated Balance Sheet
As of
August 31, 2008
LIABILITIESCurrent liabilities
Accounts payable ......................
Short-term borrowing .................
Accrued expenses .....................
Accrued corporate taxes............
Advances received ....................
Deposits received ......................
Reserve for bonuses..................
Merchandize warranties
reserve ...................................
Others........................................
Total current liabilities..............
Long-term liabilities
Long-term debt ..........................
Guarantee deposits received .....
Increase in reserve fordirectors’ retirement benefit....
Total long-term liabilities..........
Total liabilities........................
NET ASSETS
Shareholders’ equity
Common stock .........................
Capital surplus
Capital reserves .......................
Total capital surplus
Accumulated earnings
Profit reserve ............................
Other accumulated earnings
Deferred accumulated
earnings ................................
Total accumulated earnings..
Treasury stock..........................
Total shareholders’ equity
Valuation and translationdifferences
Valuation difference on othermarketable securities ............
Total Valuation and translationdifferences................................
Total net assets............................

Millions of yen
As ofFebruary 29, 2008

As of
August 31, 2007
%

%

%

2,495
9,033
1,045
1,224
349
287
506

2,036
7,500
1,834
1,843
299
428
691

2,217
5,300
1,185
1,122
266
322
473

232

--

--

1,570
16,74441.1

832
15,46641.0

1,155
12,043

3,166
815

3,000
845

3,100
844

399

--

--

34.0

4,381
21,126

10.7
51.8

3,845
19,312

10.2
51.2

3,944
15,988

11.2
45.2

4,157

10.2

4,157

11.0

4,157

11.8

4,032
4,032

9.9

4,032
4,032

10.7

4,032
4,032

11.4

39

39

22,09439

20,845

21,83021,86961.8

48.8(10,678)
19,381(30.2)
54.8

8

0.0

7

0.0

0.0
48.2

8
18,4040.0
48.8

719,389

0.0
54.8

100.0

37,717100.0

35,378100.0

22,134(10,678)54.3(26.2)

20,884(10,678)

55.4(28.3)

19,64648.2

18,396

(14)

0.0

(14)
19,63140,757

Total liabilities and net assets ...

－ 32 －

Non-consolidated Statements of Income
March 1, 2008 to
August 31, 2008

Millions of yen

March 1, 2007 to
August 31, 2007%

March 1, 2007 to
February 29, 2008%%

Sales ..........................................................

77,088100.0

76,442100.0

167,219

100.0

Cost of goods sold ...................................

58,68776.1

57,632

75.4

128,303

76.7

Gross profit on sales ...............................

18,40023.9

18,80924.6

38,915

23.3

Sales, general and administrative
expenses*3 ..............................................

15,581

20.2

14,38418.8

30,456

18.2

Operating income ....................................

2,819

3.7

4,425

5.8

8,459

5.1

Non-operating income ............................

114

0.1

128

0.2

356

0.2

Non-operating expenses*2 ........................

55

0.1

84

0.1

201

0.1

Ordinary income ......................................

2,878

3.7

4,469

5.9

8,614

5.2

Extraordinary income ...............................

80

0.1

20

0.0

20

0.0

Extraordinary expenses*4 .........................

830

1.1

298

0.4

898

0.5

Net income before taxes .........................

2,128

2.7

4,191

5.5

7,735

4.7

Corporate income tax, inhabitants tax
and enterprise tax ................................

1,172

1,782

3,307

Corporate tax adjustments ......................

(143)

(66)

135

Net income ..............................................

1,099

*1

1.4

－ 33 －

2,475

3.3

4,293

2.7

(3) Changes to non-consolidated interim shareholders’ equity
Interim period March 1, 2008 to August 31, 2008
Millions of yen
Shareholders’ equity
Capital surplus

Accumulated earnings
Other accumulated

CapitalCapital

Total capital

Profitearnings

reserves

surplusreserve

Deferred profit

Total

Treasury

accumulated

stock

Total
shareholders’equityearnings

reserve

21,83021,869Surplus dividend

(834)

(834)

(834)

Interim net income

1,099

1,099

1,099

Balance as of February 29, 2008

4,157

4,032

4,032

39

(10,678)

19,381

Change during interim accounting period

Acquisition of treasury stock00

Disposal of treasury stock
Changes to items other thanShareholders’ equity during the interim

--

--

--

--

--

--

--

--

--

--

--

--

264

264

0

264

4,157

4,032

4,032

39

22,094

22,134(10,678)

19,646accounting period
Total change during interim accounting
periodBalance as of August 31, 2008

Millions of yen
Valuation and translation differences

Balance as of February 29, 2008

Valuation differences on otherTotal valuation andmarketable securities

translation differences7

7

Total net assets

19,389Change during interim accounting period
Surplus dividend(834)Interim net income

1,099
0

Acquisition of treasury stock
Disposal of treasury stock
Changes to items other thanshareholders’ equity during the interim

(22)

(22)

(22)

(22)

(22)

242

(14)

(14)

19,631accounting period
Total change during interim accounting
periodBalance as of August 31, 2008

－ 34 －

Interim period March 1, 2007 to August 31, 2007
Millions of yen
Shareholders’ equity
Capital surplus

Accumulated earnings
Other accumulated

CapitalCapital

Total capital

Profitearnings

reserves

surplusreserve

Deferred profit

Total

Treasury

accumulated

stock

Total
shareholders’equityearnings

reserve
Balance as of February 28, 2007

4,157

4,032

4,032

39

19,406

19,445(9,540)18,094

(909)

(909)

(909)

2,475

2,475

2,475

Change during interim accounting period
Surplus dividendInterim net income
Acquisition of treasury stock
Disposal of treasury stock(1,320)(1,320)

(126)

(126)

182

56

Changes to items other thanshareholders’ equity during the interim

--

--

--

--

--

--

--

--

--

--

--

--

1,439

1,439

(1,137)

301

4,157

4,032

4,032

39

20,84520,884(10,678)

18,396accounting period
Total change during interim accounting
periodBalance as of August 31, 2007

Millions of yen
Valuation and translation differences
Valuation differences onother marketable

Total net assets

translation differences

securities
Balance as of February 28, 2007

Total valuation and6

6

18,101

Change during interim accounting period
Surplus dividend(909)

Interim net income

2,475

Acquisition of treasury stock(1,320)

Disposal of treasury stock

56

Changes to items other than shareholders’

1

1

1

Total change during interim accounting period

1

1

303

Balance as of August 31, 2007

88

18,404

equity during the interim accounting period－ 35 －

Non-consolidated fiscal year ended February 29, 2008 (March 1, 2007 to February 29, 2008)
Millions of yen
Shareholders’ equity
Capital surplus

Accumulated earnings
Other accumulated

CapitalCapital

Total capital

Profitearnings

reserves

surplusreserve

Deferred profit

Total

Treasury

accumulated

stock

Total
shareholders’equityearnings

reserve

19,406

19,445

Surplus dividend(1,744)(1,744)(1,744)

Interim net income

4,293

4,293

4,293

Balance as of February 28, 2007

4,157

4,032

4,032

39

(9,540)18,094

Change during accounting period

Acquisition of treasury stock
Disposal of treasury stock(1,320)(1,320)

(126)

(126)

182

56

Changes to items other thanshareholders’ equity during the

--

--

--

--

--

--

--

--

--

--

--

--

2,423

2,423

(1,137)

1,286

4,157

4,032

4,032

39

21,83021,869(10,678)

19,381accounting period
Total change during accounting period
Balance as of February 29, 2008

Millions of yen
Valuation and translation differences
Valuation differences onother marketable

Total net assets

translation differences

securities
Balance as of February 28, 2007

Total valuation and6

6

18,101

Change during accounting period
Surplus dividend(1,744)

Interim net income

4,293(1,320)Acquisition of treasury stock

56

Disposal of treasury stock
Changes to items other than shareholders’

1

1

1

Total change during accounting period

1

1

1,287

Balance as of February 29, 2008

7

7

19,389equity during the accounting period－ 36 －

Material Items Forming the Basis for the Preparationof the Interim Non-consolidated Financial Statements
March 1, 2008 –August 31, 2008

March 1, 2007 –August 31, 2007

March 1, 2007 –February 29, 2008

(1) Marketable securities
Bonds intended to be held
to maturity.
As at right(1) Marketable securities
Bonds intended to be held tomaturity.
Amortizing cost method(straight-line method)
Shares of subsidiaries
The cost method using themoving average method
Other securitiesThose with market value:
Market value method basedon market value as of theinterim financial closing date(valuation gains or losses aretaken directly into capital andthe cost of sales calculatedusing the moving averagemethod)Those without market value:
Cost method using themoving average method(2) Inventory
Merchandise
Vehicles:Cost method using actual
cost method
Other:
Cost method under first-in,
first-out method
Stored goods:
Final purchase cost method(1) Tangible Fixed Assets
The Declining Balance
Method is applied. However,for buildings (excluding
attached equipment)
acquired since April 1, 1998,
the Straight Line Method has
been applied. The useful
lives are as follows:
Buildings and structures:
15-20 yrs.

(1) Marketable securities
Bonds intended to be held tomaturity.
As at left

Item

1. Valuation criteria
and valuation
methods formaterial assets

Shares of subsidiaries
As at right
Other securitiesThose with market value:
As at rightThose without market value:
As at right(2) Inventory
Merchandise
Vehicles:As at right
Other:
As at right

2. Fixed asset
depreciation
methodStored goods:
As at right(1) Tangible fixed assets
As at right(Additional information)
Following the revision to the
Corporate Tax Law, for tangible
fixed assets acquired on or
before March 31, 2007, thebalance of an amountequivalent to 5% of theacquisition value and thememorandum price isdepreciated using the straightline method and are recorded
as depreciation expenses for aperiod of five years, starting in
the consolidated fiscal year
after the fiscal year in which
depreciation based on amethod stipulated in
pre-revision Corporate Tax Law
reaches 5% of the acquisition
value. The effects of thischange on operating income,ordinary income or net income
before adjustment for income
taxes is immaterial.

Shares of subsidiaries
As at left
Other securitiesThose with market value:
Market value method basedon market value as of thefinancial closing date(valuation gains or losses aretaken directly into capital andthe cost of sales calculatedusing the moving averagemethod)Those without market value:
As at left(2) Inventory
Merchandise
Vehicles:As at left
Other:
As at left
Stored goods:
As at left
(1) Tangible Fixed Assets
As at left-------------------------－ 37 －

Item

3. Treatment ofDeferred assets

March 1, 2008 –August 31, 2008

March 1, 2007 –August 31, 2007

March 1, 2007 –February 29, 2008

(2) Intangible Fixed Assets
As at right(2) Intangible Fixed Assets
The Straight Line Method isapplied. However, withrespect to software forinternal use, the Straight Line
Method based on useful lives
for internal use (five years)
has been applied.

(2) Intangible Fixed Assets
As at left

(3) Long-term prepaid
expenses
As at right
Share reissuing expense:
As at right(3) Long-term prepaid
expenses
Straight line method is applied
Share reissuing expense:
Expensed in their entirety attime of expenditure(3) Long-term prepaid
expenses
As at left
Share reissuing expense:
As at left

－ 38 －

Item

4. Criteria for
Recording Material
Reserves

March 1, 2008 –August 31, 2008

March 1, 2007 –August 31, 2007

March 1, 2007 –February 29, 2008

(1) Reserve for Doubtful
Accounts
As at right(1) Reserve for Doubtful
Accounts
To prepare for losses
occurring from bad loans, theactual bad loan rate isapplied. Specific claims, suchas those where there areconcerns on the probability
for recovery, are assessed on
an individual basis andestimated unrecoverable
amounts are recorded.

(1) Reserve for Doubtful
Accounts
As at left

(2) Reserve for Bonuses
As at right(2) Reserve for Bonuses
To prepare for the payment ofbonuses to employees,
amounts are recorded basedon the estimated payment
amount.

(2) Reserve for Bonuses
As at left

(3) Reserve for Directors’
Bonuses----------------(3) Reserve for Directors’
Bonuses-----------------(3) Reserve for Directors’
Bonuses
Calculations are based on theestimated amount required toprovide for directors’ bonuses.

(4) Reserve for Directors’
Retirement Benefit
In order to prepare forpayments for the retirement
benefits for directors, thenecessary allowance amountas of the interim balance
sheet date is accounted for inaccordance with the rules forreserves for director’s
retirement benefit.

(4)

(4)

(Change to accounting
policies)
Previously, payments for
retirement benefits for
directors were treated as
expenses at time of payment.
However, as of the fiscal year
ending February 28, 2009, therequired amount of retirement
benefits for directors at theend of the consolidated
interim period will be based on
the retirement benefits for
directors’ rules and will berecorded as reserve fordirectors’ retirement benefit.

－ 39 －--------------------------------

Item

5. Treatment ofmaterial Lease
Transactions

March 1, 2008 –August 31, 2008

This change follows the
adoption of revisions to thetreatment for Auditing ofReserve under Special
Taxation Measures Law,
Allowance or Reserve underSpecial Laws (JICPA Audit andAssurance Practice Committee
Report No. 42) announced
April 13, 2007 by the JICPA.
In comparison with theformer method, operating
income and ordinary income
would decrease by ¥23 million
and net income before income
taxes, etc. would decrease by¥399 million as a result of thischange.
(5) Merchandize Warranty
Reserve
In preparation for losses on
repairs of cars with warranties,
estimated warranty amounts forthe warranty period areaccounted for based on actual
prior results.
(Change to accounting
policies)
Previously, warranty reserves
were expensed at the time of
payment. However, as of the
fiscal year ending February 28,
2009, estimated future
warranty payments will be
accounted for as themerchandize warranty reserve.
This change follows theapplication of revisions to thetreatment for Auditing ofReserve under Special
Taxation Measures Law,
Allowance or Reserve underSpecial Laws (JICPA Audit andAssurance Practice Committee
Report No. 42) announced
April 13, 2007 by the JICPA.
In comparison to use of theformer method, operating
income and ordinary incomeare ¥47 million lower andincome before taxes, etc. is¥232 million lower as a result of
this change.
----------------March 1, 2007 –August 31, 2007(5)--------------------

Financing leases other thanthose lease assets whose title
is deemed to pass to the lessee
have been accounted for inaccordance with methods
applied to normal leasetransactions－ 40 －March 1, 2007 –February 29, 2008(5)------------------------------------

March 1, 2008 –August 31, 2008

Item

6. Other Material
Items Forming theBasis for the
Preparation of theinterimNon-consolidated
Financial Accounts

Accounting Treatment ofConsumption Tax:
As at rightMarch 1, 2007 –August 31, 2007

Accounting Treatment ofConsumption Tax:
Tax Exclusion Method isapplied in the accounting
treatment of consumption
tax.
Further, provisional receipts
of consumption tax are offset
against provisional payments
and shown under ‘Others’ in
Current Liabilities.

March 1, 2007 –February 29, 2008

Accounting Treatment ofConsumption Tax:
Tax Exclusion Method isapplied in the accounting
treatment of consumption
tax.

Changes to Material Items Forming the Basis for the Preparation of the Non-consolidated Financial Statements
March 1, 2008 –August 31, 2008-----------March 1, 2007 –August 31, 2007

March 1, 2007 –February 29, 2008

Changes to the depreciation method oftangible fixed assets
From the interim period of the fiscal
year ended February 29, 2008, in
accordance with the revision of
Corporation Tax Law (Law
Concerning the Partial Revision ofIncome Tax No. 6, issued on March
30, 2007 and Government OrdinanceConcerning the Partial Revision of
Corporation Tax Law Order No. 83,
issued on March 30, 2007), the methodof depreciation of tangible fixed assets
acquired after April 1, 2007 has beenrevised. The effects of this change on
operating income, ordinary income ornet income before adjustment forincome taxes is immaterial.

Changes to the depreciation method oftangible fixed assets
From the fiscal year ended February
29, 2008, in accordance with therevision of Corporation Tax Law (Law
Concerning the Partial Revision ofIncome Tax No. 6, issued on March 30,
2007 and Government OrdinanceConcerning the Partial Revision of
Corporation Tax Law Order No. 83,
issued on March 30, 2007), the methodof depreciation of tangible fixed assets
acquired after April 1, 2007 has beenrevised. The effects of this change on
operating income, ordinary income ornet income before adjustment forincome taxes is immaterial.

－ 41 －

Notes to Interim Non-Consolidated Balance Sheet
As of August 31, 2008

As of August 31, 2007

As of February 29, 2008

*1. Additional assets and liabilities of affiliate*1. Additional assets and liabilities of affiliate*1. Additional assets and liabilities of affiliatecompanies:

companies:¥4,958 million

companies:¥4,072 million*2. Upper credit limit amount and lending¥4,446 million*2. Upper credit limit amount and lending*2. Upper credit limit amount and lendingbalancebalancebalance

To ensure the efficient procurement and

To ensure the efficient procurement and

To ensure the efficient procurement andmanagement of funds, amounts are lentmanagement of funds, amounts are lentmanagement of funds, amounts are lentto subsidiaries and affiliate companies

to subsidiaries and affiliate companies

to subsidiaries and affiliate companies

within the Group. The upper credit limit

within the Group. The upper credit limit

within the Group. The upper credit limit

and lending balance are as follows:

and lending balance are as follows:

and lending balance are as follows:(Millions of yen)

(Millions of yen)

(Millions of yen)

Upper credit limit

16,200Upper credit limit

8,500

Upper credit limit

11,200Lending balance

7,406

Lending balance

6,500

Lending balance

3,116

Difference

8,794

Difference

1,999

Difference

8,083

Funds are provided based on the financial

Funds are provided based on the financial

Funds are provided based on the financial

position and cash position of each company

position and cash position of each company

position and cash position of each company

and in the amounts may not be provided in

and in the amounts may not be provided in

and in the amounts may not be provided in

full.

full.

full.

3.

3.

Contingent liabilities
Debt guarantees
Guarantor
G-One
Financial
ServicesCo., Ltd.
Total(Millions of yen)AmountContingent liabilities---------------

3.

Debt guarantees
Guarantor

Comments

5,000

Debt

5,000

--

Contingent liabilities

G-One
Financial
ServicesCo., Ltd.
Total

Notes to Interim Non-Consolidated Statements of Income
March 1, 2008 – August 31, 2008
*1

Main non-operating income
Interest received*2

Main non-operating expenses
Interest paid

*3

*2

*3

*4

Comments

5,000

Debt

5,000

--

March 1, 2007 – February 29, 2008
*1

37

Main non-operating expenses
Interest paid

634

Intangible fixed assets
338
Extraordinary loss
Provision for reserve for retirement benefits
for directors: ¥376 million

Main non-operating income
Interest received

48

Depreciation
Tangible fixed assets*4

34

Amount(Millions of yen)March 1, 2007 – August 31, 2007
*1

(Millions of yen)Interest received*2

35

Depreciation

Main non-operating income

Main non-operating expenses
Interest paid

*3

70

98

Depreciation

Tangible fixed assets

679

Tangible fixed assets

1,491

Intangible fixed assets
Extraordinary loss

337

Intangible fixed assets
Extraordinary loss-----------------

695---------------－ 42 －*4

Change in shareholders’ equity for the interim period
March 1, 2008 – August 31, 2008
Category and number of treasury shares in issuanceThousands of shares

No. of shares at theend of the previous
fiscal year

Increase in number ofshares during theinterim period

Decrease in number ofshares during theinterim period

Number of shares atthe end of the interim
period

1,091

0

--

1,091

1,091

0

--

1,091

Ordinary shares
Total

Notes:
1. The increase in treasury shares is due to an acquisition of shares totaling less than one trading unit

March 1, 2007 – August 31, 2007
Category and number of treasury shares in issuanceThousands of shares

No. of shares at theend of the previous
fiscal year

Increase in number ofshares during theinterim period

Decrease in number ofshares during theinterim period

Number of shares atthe end of the interim
period

909

200

17

1,091

909

200

17

1,091

Ordinary shares
Total

Notes:
1. The increase in number of treasury shares was the result of a decision by the board of directors to acquire 200 thousand
shares
2. The decrease in the number of shares was the result of the exercise of warrants for 17 thousand shares

March 1, 2007 – February 29, 2008
Category and number of treasury shares in issuanceThousands ofsharesOrdinary shares
Total

No. of shares at theend of the previous
fiscal year

Increase in number ofshares during theinterim period

Decrease in number ofshares during theinterim period

Number of shares atthe end of the interim
period

909

200

17

1,091

909

200

17

1,091

Notes:
1. The increase in number of treasury shares was the result of a decision by the board of directors to acquire 200 thousand
shares
2. The decrease in the number of shares was the result of the exercise of warrants for 17 thousand shares－ 43 －