Gulliver International Co., Ltd.

Financial Results

Fiscal 2011
(March 1, 2010 to February 28, 2011)

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.
－ 1 －SUMMARY OF FINANCIAL STATEMENTS
Results for the fiscal year ended February 28, 2011

Gulliver International Co., Ltd.

April 8, 2011
st

Stock Code: 7599
Listed exchanges: Tokyo (1 Section)
http://www.glv.co.jp/company/en
Inquiries: Executive Managing director: Yukihiro Yoshida
Chairman: Kenichi Hatori
Telephone: +81 3 5208-5503
Scheduled date of the regular shareholders’ meeting: May 25, 2011
Scheduled date for submission of the financial report: May 26, 2011 Scheduled date for distribution of dividends: May 26, 2011
1. Consolidated financial results for the fiscal year ended February 28, 2011
1) Consolidated Operating Results(Millions of yen, rounded down)

Fiscal year ended
February 28, 2011

Fiscal year ended
February 28, 2010(% change)

Sales...............................................................................
Operating income ...........................................................
Ordinary income .............................................................
Net income .....................................................................
Earnings per share (¥) ....................................................
Fully diluted earnings per share (¥) ................................
Return on equity (%).......................................................
Ratio of ordinary income to shareholders’ equity (%) .....
Ratio of operating income to sales (%) ...........................

142,038
8,001
7,824
5,140
544.67544.39
24.9
12.2
5.6

(% change)

(4.6)
51.5
56.2
--

148,853
5,281
5,008
348
38.29
-2.2
7.9
3.6

(9.1)
35.2
90.0
--

Notes:
1. Investment gains and losses under the equity method: FY ended February 2011: (¥8 million) ; FY ended February 2010: (¥12 million)
2. Percentage figures for sales, operating income, etc. represent changes compared to the previous fiscal year.

2) Financial Position (consolidated)
Total assets ...................................................................
Net assets......................................................................
Shareholders’ equity ratio (%) .......................................
Net assets per share (¥) ................................................

(Millions of yen, rounded down)

As of February 28, 2011
59,85624,89141.6%¥2,454.79

As of February 28, 2010
67,94816,39324.1%¥1,794.18

Note:
1. Shareholders’ equity: FY ended February 2011 ¥24,883 million; FY ended February 2010: ¥16,393 million

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..................

(Millions of yen, rounded down)

Fiscal year ended
February 28, 2011
14,253
2,790(11,749)
8,869

Fiscal year ended
February 28, 2010
(3,586)(1,336)
5,056
3,586

2. Dividends
Fiscal year ended
February 28, 2010
Interim dividend per share (¥) ........................................
Year-end dividend per share (¥) ....................................
Annual dividend per share (¥)........................................
Total dividends paid (Millions of yen).............................
Dividend payout ratio (%) ..............................................
Dividends to net assets ratio (%) ...................................

38.00
38.00
76.00
692
198.5％
4.4％－ 2 －Fiscal year ended
February 28, 2011
31.00
62.00
93.00
911
17.1％
4.4％

Fiscal year ending
February 29 2012
(forecast)
52.00
52.00
104.0030.0％

3. Consolidated forecasts for the fiscal year ending February 29, 2012 (March 1, 2011 to February 29, 2012)(Millions of yen, rounded down)

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

Interim period ending
August 31, 2011
63,800(12.4%)FY ending
February 29, 2012
133,000(6.4%)

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

3,100(16.2%)

6,600(17.5%)

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

3,050(15.1%)

6,500(16.9%)Net Income ..................................................................

1,670(55.3%)

3,500(31.9％)

Earnings per share (¥) .................................................

¥164.75¥345.28

Percentage figures for sales, operating income, etc. represent changes compared to the previous comparable fiscal period.

4. Other
1) Transfer of important subsidiaries during the period (Transfers of subsidiaries resulting in changes in the scope of
consolidation): None
2) Changes in accounting principles, procedures and presentation in the preparation of these financial statements(1) Changes in accordance with revision to accounting standards: None
(2) Other changes: None
3) Number of shares outstanding (ordinary shares)(1) Number of shares outstanding at end of period (including treasury shares):
As of February 28, 2011: 10,688,800 shares; As of February 28, 2010: 10,688,800 shares(2) Number of treasury shares at end of period:
As of February 28, 2011: 551,954 shares; As of February 28, 2010: 1,551,926 shares－ 3 －Reference: Outline of Non-Consolidated Financial Results
1. Non-consolidated financial results for the fiscal year ended February 28, 20111) Non-consolidated operating results(Millions of yen, rounded down)

Fiscal year ended
February 28, 2010

Fiscal year ended
February 28, 2011(% change)

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

133,716
6,178
6,214
3,496
¥370.48¥370.28

(2.0)
17.9
16.0
90.0

(% change)

136,406
5,241
5,355
1,840
¥202.08--(2.3%)
21.1%
35.3%
--

Percentage figures for sales, operating income, etc. represent changes compared to the previous fiscal year

2) Financial position (Non-consolidated)(Millions of yen, rounded down)

As of February 28, 2011
Total assets ...................................................................
Net assets......................................................................
Shareholders’ equity ratio (%) .......................................
Net assets per share (¥) ................................................

As of February 28, 2010

55,461
23,91643.1%¥2,358.66

57,84817,00529.4%¥1,861.16

Note:
1. Shareholders’ equity: FY ended February 2011: ¥23,909 million; FY ended February 2010: ¥17,005 million

2. Non-consolidated forecasts for the fiscal year ending February 29, 2012 (March 1, 2011 to February 29, 2012)(Millions of yen, rounded down)

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

Interim period ending
August 31, 2011
61,600
(9.1)
2,800
(3.5)
1,550
(29.0)¥152.91

FY ending
February 29, 2012
130,000
(2.8)
6,200
(0.2)
3,400
(2.7)
¥335.41

Percentage figures for sales, operating income, etc. represent changes compared to the previous comparable fiscal period.
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.

－ 4 －1. Operating results(1) Outline of consolidated operating results

Net sales for the consolidated fiscal year ended February 28, 2011 decreased 4.6% compared to the same
period of the previous fiscal year. The primary contributing factors were a decrease in retail sales at directly
managed Gulliver stores due to effects of the eco-car subsidy system, the reduced the scale of Gulliver’s
financing business (the result of a change implemented in May 2010 to have other credit companies handle
the majority of auto loans at point of sale for used cars sold retail by Gulliver, and the removal of G-One Credit
Services Co., Ltd. from the scope of consolidation due to the transfer outstanding shares), and a decline in thenumber of cars traded at consolidated subsidiary G-Trading Co., Ltd.
As the used car market environment remained challenging due to the effects of the eco-car subsidy system,
Gulliver steered towards an emphasis on profits and cost cutting initiatives such as strengthening internal
controls and streamlining marketing costs. Further cost reductions were achieved through by downscaling
subsidiary businesses. As a result, selling expenses and general administration expenses decreased
compared to the previous fiscal period.
An extraordinary profit of ¥1,157 million was recorded primarily due to the gain on sale of equity following
the transfer of G-One Credit Services Co., Ltd. shares.
An extraordinary loss of ¥3,284 million was also recorded. The primary factors were as follows:(1) Losses on adjustments to operations totaling ¥2,464 million recorded due to losses stemming from thewithdrawal of G-Trading Co., Ltd. subsidiary G-Trading Rus. LLC, a construction machinery business in
Russia, and anticipated losses generated by the transfer and consolidation of business functions as a partof Group consolidation.
(2) Expenses of ¥435 million recorded as addition to allowance of doubtful accounts due to the increase in theamount of liabilities exceeding assets at affiliates arising from the reduction of G-Rental Co., Ltd. business(construction machinery rentals), a subsidiary of consolidated subsidiary G-Trading Co., Ltd.
(3) A loss on retirement of fixed assets of ¥338 million was recorded due to the closing of some directly
managed Gulliver stores. Corporate tax was reduced primarily due to the following: Losses recorded in theprevious fiscal year following the transfer of all outstanding shares of G-One Credit Services Co., Ltd., to
SBI Holdings, Inc. were offset by an extraordinary gain in the current period; Losses carried forward withrespect to G-One Financial Services Co., Ltd., were recognized during the period for tax purposes;
Allowance recorded in the previous fiscal year in regards to G-Trading Co., Ltd. that resulted from the saleof all outstanding shares of G-Trading Co., Ltd. to G-One Credit Services Co., Ltd. by Gulliver Internationalin August 2010, were recognized during the period for tax purposes.
As a result of the factors noted above, and compared to the previous fiscal year, consolidated net sales
decreased 4.6% to ¥142,038 million, operating income increased by 51.5% to ¥8,001 million, ordinary income
increased 56.2% to ¥7,824 million, while net income for the period was ¥5,140 million, up 1,374.2%.

－ 5 －Performance by segment

i. Sales of used automobiles
Net sales of used automobiles declined due to a decrease in retail sales due to the effects of the eco-car
subsidy system, and a decrease in the number of cars traded at consolidated subsidiary G-Trading Co., Ltd.
Operating income increased due to a decrease in sales, general and administrative expenses achieved
through cost cutting strategies to strengthen internal controls, streamline marketing costs, etc.
The number of directly managed stores as of February 28, 2011 were 286, 2 less than at the end of thesame period of the previous fiscal year.
As a result of the above factors, consolidated net sales for the segment were ¥132,728 million, ¥5,879
million (4.2%) lower than in the previous fiscal year, and operating income increased ¥568 million (7.4%), to¥8,262 million.

ii. Financing businessNet sales from the financing business declined due the change implemented in May 2010, to use othercredit companies to handle the majority of auto loans at point of sale for used cars sold retail by Gulliver, andthe transfer of all outstanding shares in G-One Credit Services Co., Ltd.
Operating income increased due to reduced sales, general and administrative expenses as a result of theabove share transfer and recognizing revenues from auto loans of prior years.
Further, accounts receivable for the financing business decreased 49.8%, or ¥13,085 million, to ¥13,186
million compared to the end of the previous fiscal year due to the reduction in the number of auto loans and thetransfer of all outstanding shares in G-One Credit Services Co., Ltd.
Due to the above factors, consolidated net sales for the segment were ¥4,853 million, a decrease of 28.3%,
or ¥1,913 million compared to the previous fiscal year, while operating income increased by ¥1,545 million to¥1,501 million.

iii. Other businesses
As of February 28, 2011, the number of Gulliver franchised stores was 135 (5 more than at the end of theprevious fiscal year).
Sales and operating income from consolidated subsidiary Hucobo Co., Ltd., a transport company,
decreased due to a decline in the number of car orders and other factors.
As a result, consolidated net sales from Gulliver franchised stores decreased 5.7%, or ¥536 million to ¥8,882
million, and operating income decreased 13.4%, or ¥181 million, to ¥1,945 million.

Outlook for the fiscal year ending February 28, 2011
Note: Forecasts represent changes compared to the previous fiscal year.

In Japan, the used car market continued to be a challenging environment impacted by a decrease incustomers changing to new cars due to the effects of a spike in demand for new cars prior to the ending of theeco-car subsidy system in September 2010. Further, as a result of the March 11 earthquake and tsunami in－ 6 －eastern Japan, we believe that the market may continue to be challenging.
In this environment, we are conservatively forecasting a marginal increase in retail car sales from theprevious period, however, we will continue to strengthen retail sales of our very profitable used-car sales
business. In advertising, we will strengthen development of area marketing development targeting regional
characteristics and emphasize efficiency.

We will also strengthen initiatives to acquire more repeat andreferral customers. Through initiatives such as these, we plan on becoming more efficient at attracting
customers. In regards to store development, we will emphasize efficiency, curb development of new directly
managed stores and focus on increasing store the productivity of each location.
In financing, we will continue to downsize our business, and this is expected to have an impact on earnings
in the next period.
We are not forecasting any significant change in other businesses.
As a result, consolidated forecasts for the fiscal year ended February 29, 2012 are for net sales to decrease
6.4% to ¥133,000 million, operating income to decrease 17.5% to ¥6,600 million, ordinary income to decrease
16.9% to ¥6,500 million, and net income to decrease 31.9% to ¥3,500 million.

(2) Financial position

Consolidated financial position and related analysis
Assets, liabilities and shareholders’ equity
1) Current assets
The balance of current assets at the end of the period under review decreased ¥13,840 million compared tothe end of the previous fiscal period to ¥36,338 million.
Primary contributing factors included a ¥3,346 million decrease in products and a ¥13,307 million decreasein accounts receivable.
2) Fixed assets
The balance of fixed assets at the end of the period under review increased ¥5,748 million compared to theend of the previous fiscal period to ¥23,517 million.
Primary contributing factors included a ¥8,654 increase in long-term borrowings with business partners.
3) Current liabilities
The balance of current liabilities at the end of the period under review decreased ¥18,888 million compared tothe end of the previous fiscal period to ¥22,698 million.
Primary contributing factors included a ¥17,641 million decrease due to decreases from the repayment ofshort-term borrowings and the transfer of short-term borrowings to long-term borrowings.
4) Long-term liabilities
The balance of long-term liabilities at the end of the period under review increased ¥2,298 million compared tothe end of the previous fiscal period to ¥12,265 million.
The primary contributing factor was the ¥2,483 increase resulting from the transfer of short-term borrowings
to long-term borrowings.
5) Net assets
The balance of net assets at the end of the period under review increased ¥8,498 million compared to the endof the previous fiscal period to ¥24,891 million.
The primary contributing factors included a ¥7,202 decrease in treasury stock.
－ 7 －Cash flow

For the fiscal year ended February 28, 2011, cash flow from operating activities and investing activities werepositive while cash flow from financing activities was negative. Overall cash flow was a positive figure of¥5,283 million. The balance of cash and cash equivalents at the end of the period was ¥8,869 million.
Cash flow from operating activities
Cash and cash equivalents generated from operating activities was ¥14,253 million and were primarily
composed of net income before adjustment for taxes of ¥5,744 million, a ¥3,563 million decrease in accounts
receivable and a ¥3,362 million decrease in inventory assets.
Cash flow from investing activities
Net cash generated from investing activities was ¥2,790 million primarily due to the repayment of debt uponreceipt of income.
Cash flow from financing activities
Net cash used in financing activities was ¥11,749 million, largely the result of outflows for the repayment ofloans.
Trends in shareholders’ equity and cash flow indicators are as follows:
FY 2007

FY 2008

FY 2009

FY 2010

FY 2011Equity ratio (%)

41.2

40.4

26.9

24.1

41.6

Shareholders’ equity(market price base)ratio (%)

181.9

80.6

19.8

44.2

61.4

Debt redemption years(years)

2.3

12.7

--

--

1.4

Interest coverage ratio

93.6

9.6

--

--

80.8

Notes:
1. Breakdown of each indicator
Equity ratio = shareholders’ equity/total assets
Shareholders’ equity to asset ratio by market price = Market capitalization/Total assets
Debt redemption years = Interest bearing debt/Operating cash flow
Interest coverage ratio = Operating cash flow/Interest payments
2. Each index is calculated from consolidated figures
3. Market capitalization is calculated using the formula: closing share price at period end x number of shares issued (excluding
treasury stock).

(3) Basic policy concerning distribution of profits and dividend forecasts

We have identified the return of profits to investors as an important management issue and also placeemphasis on our dividend payout ratio. Specifically, the Company is targeting a dividend payout ratio of about
30% of consolidated net income.
Actual dividends may differ from previously announced forecasted dividends due to disparities between－ 8 －consolidated net income results and their forecasts.
In light of our financial results for the current fiscal year under review, the annual dividend per share was ¥93
composed of an interim dividend of ¥31.00 and a year-end dividend of ¥62.00.
In accordance with the above policies, the forecasted dividend per share for the fiscal year ended February
29, 2012 is based on a forecasted consolidated net income of ¥3,500 million and is expected to be ¥104 pershare (an interim dividend of ¥52.00 and a year-end dividend of ¥52.00).
Retained capital will be used to carry out effective and efficient investments in such areas as strengthening
internal infrastructure, developing new businesses, and training and educating personnel with the aim offurther raising profits and increasing corporate value, as well as strengthening competitiveness and improving
services.

－ 9 －

2.

Management Policy(1) Basic management policy
Gulliver has adopted ‘Growing together’ as its corporate philosophy and, under the principle of coexistence
and mutual prosperity, the company is striving for continued growth together with all those involved with theGroup, including customers, employees, partners and shareholders. Under this philosophy, Groupmanagement is making every effort to create an attractive company that is worthy of support from customers.
We also aim to bring about a revolution in the distribution of cars, and to create a “car-life” concept to satisfy
our customers.
(2) Management targets
Since its establishment in 1994, Gulliver has been a car dealership specialist that has expanded its businessprimarily as a wholesale seller of used vehicles through used car auctions. In recent years, we haveendeavored to strengthen our retail business by selling cars directly to ordinary consumers in addition to ourwholesale business. Aiming to further raise corporate value, Gulliver is committed to a medium-term target of
100,000 retail car sales through directly managed stores.

(3) Mid- to long-term management strategy
In order to achieve 100,000 used car retail sales through our directly managed stores, Gulliver is centralizing
its management resources and promoting initiatives that include:
・ Improving our sales force and services by strengthening employee training
・ Strengthening community-based area marketing・ Winning more repeat and referral customers by improving customer satisfaction
・ Enhancing brand power and recognition
・ Building new sales channels such as through large scale facilities(4) Tasks ahead
We are creating a management strategy that aims to rapidly expand retail sales while maintaining profitability,
and we plan to improve customer satisfaction and our ability to attract customers through more targetedmanagement activities and stronger employee training.

－ 10 －

Consolidated Balance Sheets(Millions of yen)
As of February 28, 2011

As of February 28, 2010ASSETS
Current assets
Cash and deposits.................................

8,896

3,613

Trade notes and accounts receivable ....

16,97930,287

Products ................................................

7,004

10,351

Operating loans receivable ....................

1,234

2,045

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

1,151

942

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

1,625

4,340

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

(552)(1,400)Total current assets...........................

36,33850,179Building and structures ..........................

10,133

10,343

Depreciation.......................................

(3,670)(3,356)

Building and structures (net) ..............

6,462

6,986

Vehicles and transportation ...................

557

336

Depreciation.......................................

(290)

(58)

Fixed assets
Tangible fixed assets

Vehicles and transportation (net) .......

267

278

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

2,309

2,686

Depreciation.......................................

(1,836)(1,722)Tools, fixtures and equipment (net)....

472

964

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

218

218

Construction in progress........................

13

270

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

7,434

8,717

Goodwill.................................................

27

48

Software ................................................

909

1,532

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

17

18

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

954

1,599

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

14

14

Shares in affiliate companies1 ...............

805

859

Long-term loans receivable ...................

8,983

328

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

2,926

3,055

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

2,814

2,955

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

433

367

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

251

525

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

(1,101)(654)

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

15,12823,517

7,452
17,769Total Assets ...........................................

59,856

67,948－ 11 －

Consolidated Balance Sheets(Millions of yen)
As of February 28, 2011

As of February 28, 2010

LIABILITIESCurrent liabilities
Accounts payable ..........................................

3,806

4,230

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

8,517

26,159Accrued expenses .........................................

2,278

3,032

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

918

1,528

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

416

249

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

496

570

Reserve for merchandize warranty..............

1,336

797

Provision for loss on business liquidation ......

1,016

--

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

3,912

5,020

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

22,69841,587Long-term borrowing .....................................

11,0008,516Long-term guarantee deposits received ........

816

877

Reserve for directors’ retirement benefit .......

442

405

Reserve for loss from subsidiaries ................

--

57

Long-term liabilities

Negative goodwill ..........................................

--

101

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

6

9

Total long-term liabilities..............................

12,265

9,967

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

34,96451,555

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

4,157

4,157

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

4,032

4,032

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

20,083

18,798Treasury stock ...............................................

(3,975)(11,178)

Total shareholders’ equity .........................

24,297

15,810

Valuation difference on other marketablesecurities ..................................................
Valuation and translation adjustments .........

--

--

586

583

Translation adjustments ................................

586

583

Warrants for new shares..................................

7--

NET ASSETS
Shareholders’ equity

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

----

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

24,891

16,393

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

59,856

67,948－ 12 －

Consolidated Statements of Income
March 1, 2010 to
February 28, 2011

(Millions of yen)March 1, 2009 to
February 28, 2010

142,038
105,565
36,47328,472
8,001

148,853
109,934
38,91833,637
5,281

110
9
10
22
153

14
37
25
91
169

176
103
51
330
7,824

138
253
50
442
5,008

---1,157
46
1,203

111
14
90
-13
229

Total extraordinary losses ..........................................
Income (loss) before taxes, etc. ..............................
Income tax, inhabitants tax and enterprise tax........
Corporate tax adjustment ........................................
Total corporate taxes ..............................................
Income (loss) from minority interests ......................

338
--11
2,464
410
58
3,284
5,744
827
(223)
603
--

938
1,386
42
24
155
91
340
2,979
2,257
2,328
(423)
1,905
3

Net income (loss) .....................................................

5,140

348

Sales ...........................................................................
Cost of sales................................................................
Gross profit ...........................................................
Sales general and administrative expenses ..................
Operating income.......................................................
Non-operating income
Interest received ......................................................
Depreciation of negative goodwill ............................
Proceeds from insurance .........................................
Other .......................................................................
Total non-operating income
Non-operating expenses
Interest paid ............................................................
Exchange related losses.........................................
Other.......................................................................
Total non-operating expenses ....................................
Ordinary income .........................................................
Extraordinary profit
Gain from prior period profit revision.......................
Gain from sale of fixed assets.................................
Gain on sale of investment securities .....................
Gain on liquidation of subsidiary .............................
Other.......................................................................
Total extraordinary profit .............................................
Extraordinary losses
Loss on disposal of fixed assets .............................
Loss from prior period profit revision.......................
Provision for subsidiaries’ losses ............................
Loss on adjustment to affiliates...............................
Loss on adjustments to operations .........................
Provision for doubtful accounts ...............................
Other.......................................................................

－ 13 －

Consolidated Statements of Cash flows
March 1, 2010 to
February 28, 2011

(Millions of yen)March 1, 2009 to
February 28, 2010

5,744
1,203
21
(9)
(38)
18
599
36
(110)
176
68
-338
(1,157)891--3,563
3,362
(209)
811
276
(76)
15,510110(176)(1,190)14,253

2,257
1,630
21
(37)
36
254
443
(19)
(14)
138
37
(14)
938
--1,275248(7,328)(2,326)
1,115
239
46
(761)
(1,819)14(131)(1,649)(3,586)(946)-(399)---(887)
4,998
(74)
67
(100)
239

(1,055)
209
(815)
(8)
(14)
222
(99)
27
(85)
257
(179)
212

(109)

--

-4
2,790

(27)
18
(1,336)

I. Cash flow from operating activities
Income (loss) before taxes, etc...............................................................
Depreciation............................................................................................
Depreciation of goodwill..........................................................................
Depreciation of negative goodwill ...........................................................
Increase in reserve for bonuses .............................................................
Increase (decrease) in allowance for doubtful accounts ........................
Additional reserve for merchandize warranty .........................................
Increase (decrease) in allowance for directors’ retirement benefit .....
Interest and dividends received ..............................................................
Interest paid ............................................................................................
Gain (loss) on foreign exchange.............................................................
Gain on sale of fixed assets....................................................................
Loss on disposal of fixed assets .............................................................
Loss (gain) on sales of stocks of subsidiaries and affiliates ...................
Loss on liquidation of business...............................................................
Loss from prior period profit revision ......................................................
Impairment losses...................................................................................
Increase (decrease) in accounts receivable ...........................................
Increase (decrease) in inventory assets .................................................
Increase (decrease) in accounts payable ...............................................
Increase (decrease) 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 acquisition of tangible fixed assets ...................................
Proceeds from sale of tangible fixed assets ...........................................
Payments for acquisition of intangible fixed assets ................................
Payments for acquisition of shares in affiliates.......................................
Payments for acquisition of investment securities ..................................
Proceeds from sales of investment securities ........................................
Amounts lent...........................................................................................
Proceeds from repayment of loans.........................................................
Payment on difference in deposits and guarantee payments.................
Proceeds from return of deposits and guarantee payments...................
Payments for repayment of construction cooperation fund ....................
Proceeds from return of construction cooperation fund..........................
Payments for sales of investments in subsidiaries resulting in change
in scope of consolidation.......................................................................
Payment into fixed term deposits............................................................
Other.......................................................................................................
Cash flow from investing activities.....................................................

－ 14 －

Consolidated Statements of Cash flows (continued)
March 1, 2010 to
February 28, 2011

(Millions of yen)March 1, 2009 to
February 28, 2010

(25,499)
11,000
(658)
4,038
(0)
(629)
-(11,749)
(11)
5,283
3,586

388
9,000
(3,983)
-(4)
(343)
0
5,056
(1)
132
4,215

--

(761)

8,869

3,586

III. Cash flow from financing activities
Net increase (decrease) in short-term borrowings .................................
Proceeds from long-term borrowings .....................................................
Repayment of long-term debt.................................................................
Proceeds from sales of treasury stock ...................................................
Purchase of treasury stock.....................................................................
Dividend payments.................................................................................
Other ......................................................................................................
Cash flow from financing activities....................................................
IV. Cash and cash equivalents currency translation differences........
V. (Decrease) increase in cash and cash equivalents..........................
VI. Cash and cash equivalents at beginning of period ........................
VII. Increase (decrease) in cash and cash equivalents from change
in scope of consolidation.................................................................
VIII. Cash and cash equivalents at end of period..................................

－ 15 －

Changes in Accounting Treatment
March 1, 2010 - February 28, 2011------------------------------------------------------------------------------------------------------------March 1, 2009 - February 28, 2010
Unification of accounting policies applied to foreignsubsidiaries and IFRS conversion.
As of the current consolidated fiscal year, the “Unification of
accounting policies applied to foreign subsidiaries and IFRS
conversion” issued May 17, 2006 by the Practical Issues Task
Force No. 18 will be applied. This will have no effect on profits.
Accounting methods for auto loan revenues
Previously, accounting methods used by consolidated
subsidiary G-One Financial Services Co., Ltd., a financial
services company, and consolidated subsidiary G-One Credit
Services Co., Ltd., recorded revenues such as interest from
unexpired periods during the contractual period. As regards
other parts of the contract, unobtainable income from full
repayment before maturity payment in subrogation were
excluded and revenues from auto loan contracts wererecorded as a lump sum. However, as of the current
consolidated fiscal year, we have changed our accounting
methods to record revenue based on periods and will no longer
recognize such revenue as a lump-sum.
In line with the above change, operating loans have beentransferred to a trust subsidiary and trust beneficiary rights andshares issued and sold as collateral assets. However, of thesesecuritized assets through, the part of the assets that were soldat book value and the parts that we continue to hold were eachvalued at fair value. The accounting methods used has beenchanged to recognize the difference between the gains/losses
on securitization and the book value allotted to assets sold.
This change has been made in an effort to improve allocationof revenues by accounting period and the overall financial
condition of the company and is the result of a review following
an increase in the number of vehicles sold by Gulliver, an
increase in the number of auto loans at consolidated
subsidiaries, and increase in number of auto loan contracts
accumulating, and a significant increase in the importance oftransactions related to loan revenues.
Further, accounting methods for contracts from previous
year have been revised to match the current accounting
methods. Following this change to the accounting method andin comparison to use of the previous accounting method, net
sales are ¥1,124 million lower, gross profit is ¥1,124 million
lower, operating income is ¥1,073 million lower, ordinary
income is ¥1,073 million lower and net income before taxes is¥2,208 million lower.

－ 16 －

4. Segment Information
Segment information by business type
Fiscal year ended February 28, 2010 (March 1, 2010 to February 28, 2011)
Trading of

Financing

Other

used cars

businessbusiness(Millions of yen)

Elimination/

Total

Consolidated

All company

Sales(1) Sales to external

132,082

3,522

6,433

142,038--

142,038

645

1,331

2,449

4,426

(4,426)--

132,728

4,853

8,882

146,464(4,426)142,038

Operating expenses

124,465

3,352

6,937

134,755(717)

134,037

Operating income

8,262

1,501

1,945

11,709(3,708)

8,001

21,738

16,223

1,402

39,323

20,53259,856

846

42

383

1,271

224

1,496

979

208

110

1,298

108

1,406

customers(2) Inter-segmental sales ortransfers
Total

Assets, Depreciation andCapital Expenditure
AssetsDepreciation andamortization expense
Capital expenditureNotes:
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
Used car sales
Financing business

Principal Product Name or Service Name
Purchase and sales of used automobiles through directly operated stores and the like.
Consolidated subsidiary G-One Financial Services Co., Ltd. provides financing services such as autoloans.

Other business

Provision of services for franchises relating to the management of Gulliver, for the sale and purchaseof cars, and stores established for the graphic sales systems.

3. Amount and principal content included in the “Elimination or Total Company” item

Amount of operating expense
which cannot be allocatedPrevious fiscal year

Current fiscal year

4,495

3,708

Amount of assets included in“Eliminations or Total(Millions of yen)
Principal content
Expenses relating to head officeadministration at the parent company
Assets, etc., related to management of

7,619

20,532Company” item

surplus funds and head officeadministration at the parent company－ 17 －

Segment information by business type
Fiscal year ended February 28, 2009 (March 1, 2009 to February 28, 2010)
Trading of

Financing

Other

used cars

businessbusiness(Millions of yen)

Elimination/

Total

All company

Consolidated

Sales(2) Sales to external

136,861

5,311

6,680

148,853―

148,853

1,745

1,455

2,739

5,940

△5,940―138,607

6,767

9,419

154,793△5,940148,853

Operating expenses

130,913

6,811

7,291

145,017△1,444

143,572

Operating income

7,693

△44

2,127

9,776

△4,495

5,281

26,19732,572

1,558

60,328

7,619

67,948

1,017

81

197

1,296

355

1,651

1,260

421

116

1,797

363

2,161

customers(2) Inter-segmental sales ortransfers
Total

Assets, Depreciation andCapital Expenditure
AssetsDepreciation andamortization expense
Capital expenditureNotes:
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
Used car sales
Financing business

Principal Product Name or Service Name
Purchase and sales of used automobiles through directly operated stores and the like.
Consolidated subsidiary G-One Financial Services Co., Ltd. provides financing services such as autoloans.

Other business

Provision of services for franchises relating to the management of Gulliver, for the sale and purchaseof cars, and stores established for the graphic sales systems.

3. Amount and principal content included in the “Elimination or Total Company” item

Amount of operating expense
which cannot be allocatedPrevious fiscal year

Current fiscal year

5,238

4,495

Amount of assets included in“Eliminations or Total(Millions of yen)
Principal content
Expenses relating to head officeadministration at the parent company
Assets, etc., related to management of

6,869

7,619

Company” item

surplus funds and head officeadministration at the parent company

Segment information by geographical location
For the current fiscal year and for the previous fiscal year over 90% of total consolidated sales and assets for each segment were in Japanso segment information by geographical location has been omitted.

Overseas sales
For the current fiscal year, and for the previous fiscal year, consolidated overseas sales were less than 10% of consolidated sales and havetherefore been omitted.

－ 18 －

Non-Consolidated Balance Sheets(Millions of yen)
As of February 28, 2011

As of February 28, 2010ASSETS
Current assets
Cash and deposits .................................

8,592

3,248

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

2,947

3,123

Products.................................................

6,933

9,450

Merchandise ..........................................
Prepaid expenses ..................................

61

118

492

542

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

964

826

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

797

371

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

(81)

(16)

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

20,70817,664

Buildings ................................................

8,261

8,312

Depreciation .......................................

(2,665)(2,398)Fixed assets
Tangible fixed assets

Buildings (net) ....................................

5,595

5,914

Structures ..............................................

1,861

1,853

Depreciation .......................................

(1,001)(918)

Structures (net)...................................

859

935

Vehicles and transportation ...................

542

299

Depreciation .......................................

(280)

(33)

Vehicles and transportation (net)........

261

265

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

2,285

2,144

Depreciation .......................................

(1,821)(1,547)

Tools, fixtures and equipment (net) ....

464

597

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

218

218

Construction in progress ........................

13

270

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

7,412

8,201

Goodwill .................................................

27

48

Trademarks............................................

1

1

Software.................................................

864

909

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

15

15

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

907

974

－ 19 －

(Millions of yen)
As of February 28, 2011

As of February 28, 2010

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

14

14

Shares in affiliate companies .................

2,022

2,021

Long-term loans receivable ...................

7,703

--

Long-term loans to affiliates...................

10,96925,916

Defaulted claims, etc .............................

36

50

Long-term prepaid expenses .................

50

36

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

2,728

2,709

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

2,814

2,955

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

439

111

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

98

90

Allowance for doubtful accounts ............
Total investments and other assets....
Total fixed assets ...............................

(444)
26,432
34,753(2,898)31,00840,184

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

55,461

57,848－ 20 －

(Millions of yen)
As of February 28, 2011

As of February 28, 2010

LIABILITIESCurrent liabilities
Accounts payable ..........................................

3,604

3,529

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

8,516

21,033

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

1,045

1,466

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

618

1,481

Accrued consumption taxes...........................

530

232

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

724

756

Advances received ........................................

1,019

877

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

408

165

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

463

476

Reserve for merchandize warranty................

1,336

757

Accrued expenses for facilities ......................

49

49

Income in advance ........................................

439

250

Provision for loss business liquidation ...........

498

--

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

29

28

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

19,285

31,104Long-term borrowing .....................................

11,0008,516Long-term guarantee deposits received ........

816

800

Reserve for directors’ retirement benefit .......

442

405

Long-term liabilities

Reserve for loss from subsidiaries ................

--

15

Total long-term liabilities..............................

12,259

9,739

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

31,54540,843

4,157

4,157

Capital reserves .........................................

4,032

4,032

Other capital surplus ..................................

--

--

4,032

4,032

39

39

Earned surplus brought forward ...............

19,655

19,954

Total retained profit

NET ASSETS
Shareholders’ equity
Paid in capital ................................................
Capital surplus

Total capital surplus
Retained profit
Earned Surplus Reserve ............................
Other retained profit

19,69519,993

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

(3,975)(11,178)

Total shareholders’ equity .......................

23,90917,005

Valuation difference on other marketablesecurities ..................................................

----

Total Valuation and translation differences ...

----Subscription rights to shares .........................

7--

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

23,91617,005

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

55,461

57,848－ 21 －

Non-Consolidated Statements of Income
March 1, 2010 to
February 28, 2011
Sales
Merchandise sales......................................................
Sales of other goods...................................................
Total sales ..............................................................
Cost of sales
Cost of merchandise soldInventory at start of period ..........................................
Purchases during the year..........................................
Total ....................................................................
Inventory at end of term ............................................
Other transfers............................................................
Net: cost of goods sold ...............................................
Other operating revenues cost of goods sold .............
Total cost of sales of other goods........................
Gross profit on sales...................................................
Sales, general and administrative expenses
Advertising..................................................................
Directors’ remuneration ..............................................
Salaries ......................................................................
Bonuses .....................................................................
Addition to reserve for bonuses ................................
Statutory welfare expenses ........................................
Contracting fees .........................................................
Travel and transportation............................................
Communication expense ............................................
Consumables..............................................................
Depreciation ...............................................................
Rent ..........................................................................
Land rent ....................................................................
Provision for directors’ retirement benefit ...................
Allowance for doubtful accounts .................................
Other ..........................................................................
Total sales, general and administrative expenses ..
Operating income...........................................................
Non-operating income
Interest income ...........................................................
Insurance income ....................................................
Other ..........................................................................
Total non-operating income ....................................
Total extraordinary profit.............................................
Non-operating expenses
Interest expense .........................................................
Other ..........................................................................
Total non-operating expenses.................................
Ordinary income .........................................................

－ 22 －(Millions of yen)March 1, 2009 to
February 28, 2010

127,030
6,686
133,716130,065
6,340
136,406

9,450
98,039107,489
6,933
338
100,217
1,056
101,273
32,442

6,016
104,959
110,975
9,450
417
101,108
1,032
102,140
34,266

3,839
192
7,107
1,300
463
1,209
2,088
776
501
383
1,148
146
4,401
36
66
2,603
26,264
6,178

5,325
230
7,406
1,393
476
1,239
2,134
810
602
429
1,541
141
4,479
44
-2,76929,024
5,241

198
10
21
230

156
25
64
246

173
21
194
6,214

118
14
132
5,355

March 1, 2010 to
February 28, 2011

(Millions of yen)March 1, 2009 to
February 28, 2010

Extraordinary profit
Gain from prior period profit revision ..........................

--

91

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

--

10

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

--

90

Reversal of allowance for doubtful receivables .........

14

78

Reversal of provision for loss on business of
subsidiaries and affiliates .........................................

14--

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

--

0

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

28

272

Loss on disposal of fixed assets ............................

291

932

Evaluation loss on shares in affiliates ....................

--

248

Extraordinary losses

Provisions for reserve for loss from subsidiaries ..

--15

Loss on sales of stocks of subsidiaries andaffiliates ...............................................................

1,433

--

Provision for doubtful accounts ..............................

--

484

Loss from prior period profit revision ......................

--

224

Loss on liquidation of business ..............................

779

--

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

166

19

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

2,670

1,925

Income (loss) before taxes, etc. .............................

3,572

3,701

Income tax, inhabitants tax and enterprise tax.......

541

2,234

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

(466)

(373)

Total corporate taxes .............................................

75

1,861

Net income (loss) ....................................................

3,496

1,840

－ 23 －