Gulliver International Co., Ltd.

Consolidated Results
First Quarter of the Fiscal Year Ending February 28, 2010
(Three-month period ended May 31, 2009)This document has been translated from the original Japanese as a guide for non-Japanese investors. It
contains forward-looking statements based on a number of assumptions made and beliefs held bymanagement 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)
First quarter results for the fiscal year ending February 28, 2010

July 9, 2009

Gulliver International Co., Ltd.

st

Stock Code: 7599
Listed exchanges: Tokyo (1 Section)
Inquiries: Executive director: Yukihiro Yoshida
http://www.glv.co.jp/
Chairman: Kenichi Hatori
Telephone: +81 3 5208-5503
Scheduled date for the submission of the financial report: July 15, 2009
Scheduled date for distribution of dividends: --1. Consolidated financial results for the three-month period ended May 31, 2009
1) Consolidated operating results

Millions of yen, rounded down

Three months ended
May 31, 2008

Three months ended
May 31, 2009(% change)

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

37,492
2,731
2,485
935
¥102.81---------(% change)

46,198
1,243
1,065
266
¥27.80¥27.808.1(46.7)(55.1)(81.3)---

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

2) Financial position (Consolidated)

Millions of yen, rounded down

As of May 31, 2009

As of February 28, 2009

59,004
16,95828.7%¥1,863.04

58,773
15,83626.9%¥1,704.02

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

As of May 31, 2009: ¥16,948 million
As of February 28, 2009: ¥15,829 million

2. Dividends

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

Millions of yen, rounded down

Fiscal year ended
February 28, 2009
41.00
0.00
41.00

Fiscal year ending
February 28, 2010 (Forecast)
38.00
38.00
76.00

Changes to the dividend forecast during the period: None

3. Consolidated financial forecasts for the fiscal year ending February 28, 2010 (March 1, 2009 to February 28, 2010)
Millions of yen, rounded down

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

Interim period ending
August 31, 2009
74,000
2,300
2,300
900
¥98.93------FY ending
February 28, 2010
154,000
5,000
5,000
2,300
¥252.82

(5.9)
28.0
89.8
---

Notes: Percentage figures for sales, operating income, etc. represent changes compared to the comparable period of the previous fiscal year.
Changes to the consolidated financial forecast during the period: None

－ 1 －

4. Other
1) Transfer of important subsidiaries during the period (Transfers of certain subsidiaries resulting in changes in the scope of
consolidation): None
2) Utilization of simplified method of accounting: Yes
See Operating Results, Section 4. Other on page 4 for more detail.
3) Changes in accounting methods, procedures and presentation in the making of these financial statements (key items
mentioned in Significant Items for the Preparation of Consolidated Financial Statements):
1. Changes following revisions to accounting standards: Yes
2. Other changes: No
Note: See Operating Results, Section 5. Other on page 4-5 for more detail.
4) Number of shares outstanding (ordinary shares)
1. Number of shares outstanding (including treasury shares):
As of May 31, 2009: 10,688,800
As of February 28, 2009: 10,688,800
2. Number of treasury shares:
As of May 31, 2009: 1,591,733
As of February 28, 2009: 1,591,730
3. Average number of shares during the period:
Three months ended May 31, 2009: 9,097,069
Three months ended May 31, 2008: 9,597,077
Notice regarding the appropriate use of the financial forecasts and other items
1.

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

2.

As of the current consolidated fiscal year, Accounting Standard for Quarterly Financial Reporting (ASBJ Statement No. 12) and(Guidance to Accounting Standard for Quarterly Financial Reporting) ASBJ Guidance No. 14 have been applied. The quarterly
consolidated financial statements have been prepared in accordance with the rules for the preparation of quarterly consolidated
financial statements.

－ 2 －1. Operating results(1) Outline of consolidated operating results
Net sales for the first quarter of the consolidated fiscal year ending February 28, 2010 decreased 18.8% compared to
the first quarter of the previous fiscal year. The primary causes were a decrease in the number of cars purchased bydirectly managed Gulliver stores and a decrease in sales from consolidated subsidiary G-Trading Co., Ltd. (JQ: 3348).
However, sales of G-One Financial Services Co., Ltd., our consolidated subsidiary that is developing the financing
business, increased due to a relative increase in the number of auto loans compared to growth in the number of cars
sold through directly managed Gulliver stores. Although net sales decreased during the first quarter, operating income
increased 119.6% over the first quarter of the previous fiscal year. This was largely due to a significant increase in thenumber of retail auto sales to regular consumers, a method of sales more profitable than used cars sold wholesale toused car operators through used car auctions. A decrease in sales, general and administrative expenses due to adecrease in marketing expenses and others also contributed to the results. Further, an extraordinary loss of ¥642
million was recorded due to losses such as a ¥428 million loss on disposal of fixed assets following the closure ofcertain stores.
As a result of the factors noted above, consolidated net sales for the period under review decreased by 18.8% to¥37,492 million, operating income increased 119.6% to ¥2,731 million and ordinary income increased 133.2% to¥2,485 million, and net income for the period was ¥935 million, up 250.5%.
First quarter results for operating income and ordinary income in the period under review set a new record for the
first quarter profits.
Performance by segmenti.Sales of used automobiles
As previously mentioned, net sales decreased due to a decrease in sales from the used automobile business due to a
reduction in the number of cars purchased by directly managed Gulliver stores and lower sales from consolidated
subsidiary G-Trading Co., Ltd. However, growth in the number of retail sales to regular consumers, a method of sales
more profitable than used cars sold wholesale to used car operators through used car auctions, lower sales, generaland administrative expenses due to a decrease in marketing expenses and a decrease in personnel expenses
resulting from a decrease in staff numbers led to an increase in operating income
As of May 31, 2009, the number of directly managed Gulliver stores was 290 (10 less than at the end of the same
period of the previous fiscal year and 18 less than at the end of the previous fiscal year).
Due to the above factors, consolidated net sales for the segment decreased 19.6%, or ¥8,425 million compared tothe previous fiscal year, to ¥34,661 million, and operating income increased 80.0%, or ¥1,445 million, to ¥3,251 million.
ii. Financing business
Revenues from G-One Financial Services Co., Ltd., a financial services company, grew due to a relative increase in
the number of automobile loans relative to the growth in retail auto sales. However, sales, general and administrative
expenses increased following the expansion of operations. As a result of the increase in number of auto loans,compared to the end of the previous fiscal year accounts receivable for the financing business increased 16.2%, or¥2,969 million, to ¥21,358 million.
Due to the above factors, consolidated net sales for the segment increased 38.5%, or ¥553 million over the previous
fiscal year to ¥1,991 million, and operating income decreased 42.0%, or ¥39 million, to ¥54 million.

iii. Other businesses
As of May 31, 2009, the number of Gulliver franchised stores was 132 (17 less than at the end of the same period of－ 3 －the previous fiscal year and 13 less than at the end of the previous fiscal year). As a result, revenues from Gulliver
franchised stores also decreased. Further, revenues from consolidated subsidiary Hucobo Co., Ltd., a transportcompany, also decreased.
As a result, consolidated net sales for the segment decreased 17.1%, or ¥525 million, to ¥2,556 million andoperating income decreased 25.6%, or ¥185 million, to ¥541 million.
Due to changes to accounting standards, comparisons to the previous period have been provided for reference only.
(2) Financial position

Consolidated financial position and related analysis
Assets, liabilities and shareholders’ equity
Note: Comparisons represent changes compared to the previous fiscal year.

AssetsTotal assets at the end of the period under review increased 0.4% to ¥59,004 million.
Current assets increased by 0.9% to ¥40,577 million due to an increase in accounts receivable and despite decreases
in cash and cash deposits, inventories held for sale, and others.
Fixed assets decreased 0.8% to ¥18,427 million as a result of not having invested in facilities at newly opened storesand other factors.
Liabilities
Total liabilities at the end of the period under review decreased 2.1% to ¥42,046 million.
Current liabilities decreased 2.9% to ¥39,697 million due to repayment of short-term borrowings and other factors.
Long-term liabilities increased 13.2% to ¥2,349 million due in part to an increase in customers’ deposits.
Net assets
Total net assets at the end of the period under review increased 7.1% to ¥16,958 million due to an increase in retained
earnings resulting from positive net income for the period. The shareholders’ equity ratio increased 1.8 percentage
points to 28.7%.
Outlook for the fiscal year ending February 28, 2010
Note: Comparisons represent changes compared to the previous fiscal year.
There have been no changes made to the interim and full year consolidated results forecasts included in the financial
statements issued April 20, 2009.
Despite a decrease in advertising expenses during the first quarter of the current fiscal year, we are forecasting an
increase in advertising expenses for the full year due to plans to strengthen the retail operations through active retailsales promotions, including television commercials, in the second half of the current fiscal year.
4. Other
1) Transfer of important subsidiaries during the period (Transfers of subsidiaries resulting in changes in the scopeof consolidation): None.
2) Changes in accounting principles and procedures:(1) Simple accounting methods
・Calculation methods for estimating loss on ordinary loans
Since there have been no significant change to the loan loss ratio and others calculated at the end of theprevious consolidated fiscal year, these figures were used for the basis of calculations for the estimated loan
loss and others at the end of the period under review.
－ 4 －・Calculation methods for depreciation allowance of fixed assets
For assets to which the declining balance method is applied, depreciation allowance is calculated by the amount
distributed proportionally for that consolidated fiscal year.
・Evaluation of inventory assets
Calculations for inventory assets at the end of the first quarter are based on a combination of a reduction of
actual inventories and the actual inventory at the end of the previous consolidated fiscal year. Regarding the
reduction in the book value of inventory assets, in respect of only those items where the decline in profitability isclear, we have estimated the net sale price and reduced the book value accordingly.
・Calculation methods for corporate and other taxes and deferred tax assets and liabilities
The calculation for corporate and other tax payments is limited to important increases or decreases and tax
credit items. The calculation method for evaluating the possibility of recovering deferred tax assets uses theresults forecasts and tax planning used at the end of the previous consolidated fiscal year because there havebeen no significant change in the management environment, etc., since the end of the previous consolidated
fiscal year nor any other a temporary changes.
・Mutual debt and loans and elimination transactions among consolidated subsidiaries
In cases where the differences in amounts of the aforementioned credit and liabilities are clear, when the
differences are within a reasonable scope, the amounts are not adjusted and the credit and liabilities are
eliminated. When there are immaterial differences in transaction amounts, eliminations are made using methods
such as matching the amount of the new company.
(2) Utilization of unordinary accounting methods
No applicable items
3) Changes in accounting methods, procedures and presentation in the making of these financial statements.
(1) Application of accounting standards for the quarterly financial report
As of the current consolidated fiscal year, Accounting Standard for Quarterly Financial Reporting. (ASBJ
Statement No. 12) and (Guidance to Accounting Standard for Quarterly Financial Reporting) ASBJ Guidance No.
14, have been applied. The quarterly consolidated financial statements have been prepared in accordance withthe rules for the preparation of quarterly consolidated financial statements.
(2) Application of accounting standards for the evaluation of inventory assets
Previously, inventory assets were primarily accounted for by the actual cost method, however, as of the current
consolidated financial period, and following application of Accounting Standard for Evaluation Inventory Asset(ASBJ Statement No. 9, July 5, 2006) calculations will be based primarily on actual cost method (Regardingbalance sheet values, book values have been reduced based on a decline in profitability) The effect of thisaccounting change is immaterial.

－ 5 －Consolidated Balance Sheets
Millions of yen
As of
May 31, 2009

As ofFebruary 28, 2009

AssetsCurrent assets
Cash and deposits.................................

3,273

Trade notes and accounts receivable ....

25,2284,215
23,296

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

7,668

8,111

Short-term loans receivable ...................

2,277

2,287

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

777

456

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

2,334

2,784

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

(983)

(951)

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

40,57740,202

Buildings and structures........................

10,682

11,011

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

(3,159)(3,241)

Buildings and structures (net) .............

7,522

7,770

Fixed assets
Tangible fixed assets

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

75

53

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

(52)

(39)

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

23

13

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

3,419

3,204

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

(2,108)(2,039)Tools, fixtures and equipment (net) ....

1,310

1,164

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

409

409

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

1

164

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

9,267

9,522

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

68

77

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

1,713

1,545

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

71

72

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

1,854

1,695

Investment securities .............................

202

118

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

152

150

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

157

158

Investments and other assets

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

3,466

3,953

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

2,974

2,530

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

394

434

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

411

406

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

(454)

(400)

Total investments and other assets......

7,305

7,352

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

18,427

18,571

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

59,004

58,773－ 6 －Consolidated Balance Sheets
Millions of yen
As of
May 31, 2009
Liabilities
Current liabilities
Accounts payable ...................................
Short-term borrowing ..............................
Accrued expenses ..................................
Accrued corporate taxes.........................
Deposits received ...................................
Reserve for bonuses...............................
Reserve for product warranty ...............
Reserve for loss on restructuring ofoperations ...........................................
Others.....................................................
Total current liabilities...........................
Long-term liabilities
Long-term borrowing ..............................
Long-term guarantee deposits received .
Reserve for directors’ retirement
benefit .................................................
Negative goodwill....................................
Other.......................................................
Total long-term liabilities.......................
Total liabilities.......................................
Net assets
Shareholders’ equity
Paid-in capital .........................................
Capital surplus ........................................
Retained profit ........................................
Treasury stock ........................................
Total shareholders’ equity ..................

As of
February 28, 2009

3,178
26,008
3,146
1,349
341
999
387

2,993
28,643
3,259
567
166
559
354

64
4,220
39,697-4,31740,862

587
882

624
874

431

425

129
318
2,349
42,046

138
11
2,074
42,937

4,157
4,032
19,703(11,465)
16,427

4,157
4,032
18,768(11,465)
15,492

41

(8)

479

345

520

336

4

4

Valuation difference on othermarketable securities
Unrealized gains and losses in othersecurities .............................................
Translation adjustments..........................
Total appraisal and translationdifferences .........................................
Warrants for new shares ...........................
Minority interests .......................................

5

2

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

16,95815,836

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

59,004

58,773－ 7 －Consolidated Statements of Income
Millions of yen

March 1, 2009 to
May 31, 2009
Sales ...................................................
Cost of sales ........................................
Gross profit ......................................
Sales general and administrative
Operating income............................
Non-operating income
Interest received ...................................
Commissions received ..........................
Amortization of negative goodwill..........
Other .....................................................
Total non-operating income ..................
Non-operating expenses
Interest paid .........................................
Exchange related loss..........................
Other ....................................................
Total non-operating expenses..............
Ordinary income ......................................
Extraordinary profit
Gains from cancellation in theprevious term .............................
Reversal of allowance for doubtfultOthers ..............................................
Total extraordinary profit ............
Extraordinary losses
Loss from cancellation in the previoustLoss on disposal of fixed assets..............
Loss from restructuring of operations ......
Others .....................................................
Total extraordinary loss ...........................
Net income before taxes, etc...................
Income tax, inhabitants tax andenterprise tax ....................................
Corporate tax adjustment......................

37,492
26,52010,971
8,240
2,731
0
5
9
29
44
40
235
13
290
2,485
32
38
17
89
122
428
66
24
642
1,932
1,307

Total corporate taxes ............................
Gain from minority interests ..................

(314)
992
4

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

935

－ 8 －

Consolidated Statements of Cash flows
Millions of yen
March 1, 2009 to
May 31, 2009
I. Cash flow from operating activities
Income before taxes, etc. .................................................................
Depreciation......................................................................................
Amortization of goodwill....................................................................
Amortization of negative goodwill .....................................................
Increase (decrease) in allowance for doubtful accounts ..................
Increase (decrease) in reserve for bonuses .....................................
Increase (decrease) in reserve for directors’ retirement benefit .......
Increase (decrease) in reserve for product warranty ........................
Interest and dividends received ........................................................
Interest paid ......................................................................................
Gain (loss) on foreign exchange.......................................................
Loss on disposal of fixed assets .......................................................
(Increase) decrease in accounts receivable .....................................
(Increase) decrease in inventory assets...........................................
(Increase) decrease in operating loans ............................................
Increase (decrease) in accrued consumption tax .............................
Increase (decrease) in accounts payable
Other.................................................................................................
Subtotal.............................................................................................
Interest and dividends received ........................................................
Interest paid ......................................................................................
Corporate taxes paid ........................................................................
Cash flow from operating activities ...................................................

1,932
422
6
(9)
86
439
6
33
(0)
40
226
428
(2,379)
291
9
125
199
987
2,848
0
(40)
(501)
2,306

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 of affiliates ................................
Proceeds from repayment of loans...................................................
Payments for deposits and guarantee..............................................
Proceeds from repayment of deposits and guarantee......................
Payments for construction cooperation fund ....................................
Other.................................................................................................
Cash flow from investing activities ....................................................

(209)
0
(371)
(1)
0
(23)
48
(25)
(0)
(582)

III. Cash flow from financing activities
Net increase (decrease) in short term borrowings............................
Repayment of long-term loans .........................................................
Payments for acquisition of treasury stock .......................................
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. Cash and cash equivalents at end of period.................................

－ 9 －(2,610)(62)(0)(2,672)
5
(942)
4,215
3,273

Note: As of the current consolidated fiscal year, Accounting Standard for Quarterly Financial Reporting. (ASBJ Statement No. 12)
and (Guidance to Accounting Standard for Quarterly Financial Reporting) ASBJ Guidance No. 14, have been applied. The quarterly
consolidated financial statements have been prepared in accordance with the rules for the preparation of quarterly consolidated
financial statements.

4. Assumptions related to going concern
No applicable items

5. Segment Information
Segment information by business typeFirst quarter of the fiscal year ending February 28, 2010 (March 1, 2009 to May 31, 2009)

Sales(1) Sales to externalcustomers(2) Inter-segmental sales
or transfers
Total
Operating income

Trading ofused cars

Financialbusiness

Otherbusinesses

34,206

1,573

1,712

454
34,661
3,251

417
1,991
54

844
2,556
541

Millions of yen

Elimination/
All company

Consolidated

37,492--37,492

1,716
39,2083,847(1,716)(1,716)(1,116)-37,492
2,731

Total

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
Used car sales
Financing business

Principal Product Name or Service Name
Purchase and sales of used automobiles such as through directly operated storesConsolidated subsidiary G-One Financial Services Co., Ltd. provides auto loans and other financing
services.

Other businesses

Provision of services for franchises involved in the management of Gulliver, for the sale and purchaseof cars, and stores established with graphic sales systems.

Segment information by geographical location
For the first quarter of the current consolidated fiscal year over 90% of sales were from Japan and therefore segment information bygeographical location has been omitted.

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

－ 10 －

Reference:
Income statement for the first quarter of the consolidated fiscal year ending February 28, 2009

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

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

46,198

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

35,777Gross profit ...................................

10,420

Sales general and administrative
expenses .......................................

9,176

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

1,243

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

73

Non-operating expenses ....................

251

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

1,065

Extraordinary profit .............................

17

Extraordinary losses......................... .

438

Net income before taxes, etc ................

644

Income tax, inhabitants tax andenterprise tax..................................

326

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

102

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

(51)

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

266－ 11 －