Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended February 29, 2016
(Based on Japanese GAAP)
April 13, 2016
Company name:

Gulliver International Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
7599
Representative:
Inquiries:

URL

http://221616.com

ChairmanManager, Business Management Division

Kenichi Hatori
Masayuki Matsumoto

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

May 26, 2016
May 27, 2016

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

May 27, 2016
Yes

Holding of financial results meeting:

Yes

TEL

03-5208-5503(for analysts and institutional investors)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended February 29, 2016 (from March 1, 2015 to February 29, 2016)(1) Consolidated financial results
Percentages indicate year-on-year changes
Net salesYear ended February 29, 2016
Year ended February 28, 2015

Millions of yen
210,085
155,681

Operating income% Millions of yen
34.9
7,542
(8.1)
5,325

Diluted net income
per share
Yen
Yen
40.55
–
32.42
32.41

Net income per share
Year ended February 29, 2016
Year ended February 28, 2015

Ordinary income% Millions of yen
41.6
6,835
(24.9)
5,345

Net income% Millions of yen
27.9
4,111
(25.8)
3,286

Ordinary
income/total assets
%
%
11.5
9.0
9.7
9.7

Net income/equity%
25.1(24.6)

Operatingincome/net sales
%
3.6
3.4

(2) Consolidated financial position
Total assets

Net assets

Millions of yen
94,211
57,153

Millions of yen
38,24534,629Cash flows fromoperating activities
Millions of yen
4,121
56

Cash flows frominvesting activities
Millions of yen(17,686)(8,540)

As of February 29, 2016
As of February 28, 2015

Equity ratio

Net assets per share
%
39.4
60.6

Yen
365.98341.49(3) Consolidated cash flows

Year ended February 29, 2016
Year ended February 28, 2015

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
17,8589,122(1,721)4,863

2. Cash dividends
Ratio of
Dividend
Total cash
dividends topayout ratio
dividends (Total) (Consolidated)
net assets(Consolidated)

Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

Year ended February 28, 2015
Year ended February 29, 2016

–
–

7.50
7.50

–
–

7.50
5.00

15.00
12.50

1,521
1,267

46.3
30.8

4.5
3.5

Year ending February 28, 2017 (Forecast)

–

9.00

–

9.00

18.00

1

29.4

3. Forecast of consolidated financial results for the year ending February 28, 2017 (from March 1, 2016 to February 28, 2017)

Net sales
Millions of yen
Six months ending
August 31, 2016
Full year

Percentages indicate year-on-year changes
Profit attributable to
Net income
Operating income
Ordinary income
owners of parent
per share% Millions of yen% Millions of yen% Millions of yen%
Yen

124,200

30.7

4,800

17.7

4,550

12.5

2,700

5.3

26.63

253,000

20.4

10,80043.2

10,300

50.7

6,200

50.8

61.13

4. Notes(1) Changes in significant subsidiaries during the year ended February 29, 2016(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements after error corrections:No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of February 29, 2016

106,888,000 shares As of February 28, 2015

106,888,000 shares

Number of treasury shares at the end of the period
As of February 29, 2016

5,480,300 shares As of February 28, 2015

5,480,170 shares

101,407,733 shares Year ended February 28, 2015

101,391,294 shares

Average number of shares during the period
Year ended February 29, 20162

1. Analysis of Operating Results and Financial Position
1. Operating Results(1) Analysis of consolidated operating results
In the fiscal year ended February 29, 2016 , total annual retail car sales volume increased 36.0% from the previous fiscal year to70,709, a record since the founding of Gulliver. This result was supported by strong retail car sales volume at display sales stores,
namely WOW!TOWN, OUTLET, LIBERALA, SNAP HOUSE, and MINICLE.
Selling, general and administrative (SG&A) expenses mainly reflected an increase in expenses accompanying an increase in thenumber of display sales stores and an increase in advertising expenditures due to an increase in advertisements centered on theInternet.
In the fiscal year ended February 29, 2016, Gulliver Australia Holdings Pty Ltd. , a 100%-owned subsidiary of the Company, as
well as Buick Holdings Pty Ltd., in which the Company acquired 67% of shares in September 2015, and its subsidiaries, became
newly consolidated subsidiaries of the Company. In February 2016, Gulliver conducted a debt-to-equity swap with respect to aloan it had made to Gulliver Australia Holdings. In the fiscal year ended February 29, 2016, Gulliver recognized the difference
between the applicable exchange rate upon the execution of a foreign currency forward agreement prior to executing the loan to
Gulliver Australia Holdings, and the foreign exchange rate on the execution date of the debt-to-equity swap, as a foreign exchange
loss of 423 million yen under non-operating expenses. Following the execution of the debt-equity swap, the full amount of the loan
from Gulliver to Gulliver Australia Holdings has been eliminated. Accordingly, Gulliver does not expect to record similar foreignexchange gains or losses under non-operating income or non-operating expenses in the fiscal year ending February 28, 2017.
Due to the above, consolidated business results for the fiscal year ended February 29, 2016 were as follows: consolidated net salesrose by 34.9% from the previous fiscal year to 210,085 million yen, operating income increased by 41.6% from the previous fiscal
year to 7,542 million yen, ordinary income increased by 27.9% from the previous fiscal year to 6,835 million yen, and net income
increased by 25.1% from the previous fiscal year to 4,111 million yen.
Outlook for the fiscal year ending February 28, 2017
Considering the strong retail car sales volume at display sales stores, Gulliver will continue to accelerate the opening of new
display sales stores. For this reason, Gulliver expects total retail car sales volume at all directly managed stores to increase in thefiscal year ending February 28, 2017.
In light of the above, the outlook for the fiscal year ending February 28, 2017 is for consolidated net sales of 253,000 million yen,
up 20.4% year on year, operating income of 10,800 million yen, up 43.2% year on year, ordinary income of 10,300 million yen, up
50.7% year on year, and net income of 6,200 million yen, up 50.8% year on year.

(2) Analysis of financial position[Assets, liabilities and net assets]
AssetsTotal assets at February 29, 2016 were 94,211 million yen, up 64.8% from February 28, 2015.
Current assets at February 29, 2016 had increased by 66.9% from February 28, 2015 to 49,074 million yen. The primarycontributing factors were a 4,252 million yen increase in Cash and deposits and a 14,828 million yen increase in Merchandise.
Total non-current assets at February 29, 2016 had increased by 62.6% from February 28, 2015 to 45,136 million yen. This mainlyreflected a 3,384 million yen increase in Buildings and structures, primarily due to the opening of new directly managed stores,
and a 7,600 million yen increase in Goodwill.

3

Liabilities
Total liabilities at February 29, 2016 had increased by 148.5% from February 28, 2015 to 55,965 million yen.
Current liabilities at February 29, 2016 had increased by 44.1% from February 28, 2015 to 28,600 million yen. The primarycontributing factors were a 9,002 million yen increase in Accounts payable – trade, and a 1,535 million yen increase in Income
taxes payable.
Total non-current liabilities at February 29, 2016 had increased by 922.6% from February 28, 2015 to 27,365 million yen. The
primary contributing factor was a 22,808 million yen increase in Long-term loans payable.
Net assets
Net assets at February 29, 2016 had increased by 10.4% from February 28, 2015 to 38,245 million yen, mainly due to a 2,590
million yen increase in Retained earnings accompanying the posting of net income and a 1,131 million yen increase in Minority
interests.
[Cash flow position]
Cash and cash equivalents (“cash”) at February 29, 2016 was 9,122 million yen, up 4,259 million yen, or 87.6%, from February 28,
2015.
The cash flow position and the main cash flow components for the fiscal year ended February 29, 2016 were as follows:(Cash flows from operating activities)
Net cash provided by operating activities was 4,121 million yen.
The main components were Income before income taxes and minority interests of 6,610 million yen and a Decrease in notes andaccounts receivable – trade of 975 million yen, which were partially offset by an Increase in inventories of 7,536 million yen.

(Cash flows from investing activities)
Net cash used in investing activities was ¥17,686 million.
Cash was mainly used for the Purchase of property, plant and equipment due to the opening of new directly managed stores, andPayments for lease and guarantee deposits, along with the Purchase of shares of subsidiaries resulting in change in scope of
consolidation.

(Cash flows from financing activities)
Net cash provided by financing activities was 17,858 million yen.
This was mainly due to Proceeds from long-term loans payable of 22,680 million yen, which were partially offset by Repaymentsof long-term loans payable of 4,696 million yen.
(Reference) Trends in shareholders’ equity and cash flow indicators are as follows:

Equity ratio (%)
Shareholders’ equity (mark-to-market) ratio (%)
Debt redemption years
Interest coverage ratio

FY 2012
49.9
58.7
1.0
66.7

FY 2013
55.3
73.3
2.9
31.2

FY 2014
62.2
150.4
0.4
157.7

FY 2015
60.6
166.1
95.0
1.3

FY 2016

Notes:
1. Breakdown of each indicator
Equity ratio = shareholders’ equity/total assets
Shareholders’ equity (mark-to-market) ratio = 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 following formula: closing share price at period-end x number of shares issued (excluding treasury stock)

4

39.4
122.8
6.1
19.4

(3) Basic policy concerning distribution of profit and dividends for the fiscal year ended February 29, 2016 and the fiscal
year ending February 28, 2017
Basic dividend policy and targets
Gulliver’s dividend policy has been to pay a dividend linked to earnings performance, applying a payout ratio of 30% ofconsolidated net income as a yardstick in deciding the dividend amount. Given the above basic policy and target, our expected
dividends may be amended if consolidated net income is not as expected.
Dividend for the fiscal year ended February 29, 2016
In accordance with the above basic policy and target, Gulliver plans to pay an annual dividend of 12.50 yen per share for the fiscal
year ended February 29, 2016, comprising an interim dividend of 7.50 yen and a year-end dividend of 5 yen.
Dividend for the fiscal year ending February 28, 2017
In accordance with the above basic policy and targets, assuming forecast consolidated net income of 6,200 million yen, Gulliver
plans to pay an annual dividend for the fiscal year ending February 28, 2017 of 18 yen per share, comprising interim and year-end
dividends of 9 yen each.

5

2.

Business policy(1) The Company’s basic business policy
Gulliver has embraced “Growing Together” as its corporate philosophy. Guided by the principle of building win-win
relationships, Gulliver seeks to grow together with customers, employees, partners, shareholders and all other people involved
with the Gulliver Group, as well as society as a whole. To make this corporate philosophy a reality, management is determined toestablish Gulliver as a highly admired enterprise that has the support of its customers at all times. In addition to the used carpurchasing business, its founding business for which it has established a proven business model, Gulliver aims to bring about a Car
Distribution Revolution through its retail business, which it has been focusing on in recent years. Gulliver will constantly scale
new heights in order to create automotive lifestyles that its customers enjoy.
(2) Key performance indicators

Since its founding in 1994, Gulliver has expanded its business primarily around the purchasing of used cars as a specialist
car purchaser and the wholesaling of cars via used car auctions. In addition to these activities, in recent years Gulliver has
been strengthening its retail business, in which it sells used cars directly to general consumers. Over the medium term,
Gulliver will expand its retail car sales volume. At the same time, it will leverage improvements in profit margins on its
retail business with the aim of raising ROE to within the 20% range.
(3) The Company’s medium- and long-term business strategy

Gulliver is expanding its retail car sales volume and concentrating its business resources to implement the following
measures:Establish a nationwide network in Japan by accelerating the opening of display sales stores
Increase customer footfall through marketing activities such as publicity and advertising
Enhance sales and service capabilities by bolstering staff training
Win repeat customers and referrals by enhancing customer satisfaction
Develop new services and products to expand the retail business(4) The Company’s priorities ahead
Gulliver will address diversifying customer needs and the shift away from cars in Japan due to its aging society with fewer
children. To do so, the Company will implement measures such as providing a more diverse range of services, bolstering staff
training, and conducting more finely tuned marketing activities. Through these measures, Gulliver will strive to differentiate itself
from competitors and become the company of choice for all manner of customers.

3.

Basic Approach to Selection of Accounting Standards

The Gulliver Group is considering the adoption of IFRS beginning with the settlement of accounts for the fiscal year ending
February 28, 2017, in order to enhance international comparability of its financial information in the capital markets.

6Consolidated financial statements
Consolidated balance sheets
As of February 28, 2015

(Millions of yen)
As of February 29, 2016

4,897
4,619
17,020
801
2,114
(49)
29,402

9,149
5,192
31,848
778
2,159
(54)
49,074

20,622(6,571)
14,051
571
(104)
466
3,155
(2,414)741
218
649
16,12626,000(8,564)
17,435
435
(180)
255
3,882
(2,874)
1,007
218
826
19,743

1,332
1,997
19
3,349

1,941
9,597
3,974
15,513

0
71
124
4,034
3,472
268
381
(78)
8,274
27,75057,153

13
45
395
4,565
4,304
274
489
(209)
9,879
45,136
94,211

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Lease and guarantee deposits
Construction assistance fund receivables
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

As of February 28, 2015

(Millions of yen)
As of February 29, 2016

5,100
150
4,647
495
2,203
242
2,951
479
436
1,276
–
1,864
19,847

14,102
2,045
79
–
3,064
1,778
3,026
475
459
1,076
113
2,378
28,600

43
690
507
1,435
–
–
–
2,676
22,52322,851
651
540
1,653
1,086
388
194
27,36555,965

4,157
4,032
30,278(3,947)34,521

4,157
4,032
32,869(3,947)
37,111108
108–
34,62957,1531
1
1,131
38,245
94,211

Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Accounts payable - other
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Provision for merchandise warranties
Other provision
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Long-term guarantee deposited
Provision for directors' retirement benefits
Asset retirement obligations
Deferred tax liabilities
Other provision
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

8Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
Fiscal year ended
February 28, 2015
February 29, 2016
Net sales
155,681
210,085
Cost of sales
116,605
158,474
Gross profit
39,07551,610
Selling, general and administrative expenses
33,75044,067
Operating income
5,325
7,542
Non-operating income
Interest income
1940
Reimbursement claims
12–
Foreign exchange gains
0
–
www
14
–
Insurance premiums refunded cancellation
–
11
Other
41
68
Total non-operating income
89120
Non-operating expenses
Interest expenses
42
212
Provision of allowance for doubtful accounts
01
Loss on insurance cancellation17–
Foreign exchange losses
–
567
Other
8
46
Total non-operating expenses
69
827
Ordinary income
5,345
6,835
Extraordinary income
Gain on sales of property, plant and equipment–
0
Gain on liquidation of subsidiaries
–
3
Other
0
0
Total extraordinary income
04Extraordinary losses
Loss on retirement of non-current assets
104
67
Impairment loss
55–
LessContractCancelationPenalty
24–
Loss on valuation of shares of subsidiaries–
31
Provision of allowance for doubtful accounts
–
129
Other
4
0
Total extraordinary losses
188
229
Income before income taxes and minority interests
5,157
6,610
Income taxes - current
1,476
2,441
Income taxes - deferred394
27
Total income taxes
1,871
2,469
Income before minority interests
3,286
4,140
Minority interests in income–
28
Net income
3,286
4,111

9

Consolidated statements of comprehensive income

Income before minority interests
Other comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to minority
interests

10

Fiscal year ended
February 28, 2015
3,286

(Millions of yen)
Fiscal year ended
February 29, 2016
4,140

28
28
3,314

(37)
(37)
4,103

3,314

4,005

–

98

Consolidated statements of changes in equity
Fiscal year ended February 28, 2015
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current period

Capital surplus

4,157

Retained earnings

4,032

Total shareholders'equityTreasury shares

28,548(3,975)32,761

Changes of items during period
Change of scope of consolidation
Dividends of surplus
Transfer of loss on disposal oftreasury shares

11

Net income

27

27(1,571)(1,571)

(11)

–

3,286

3,286

Purchase of treasury shares
Disposal of treasury shares

(11)

(0)

(0)

28

17

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

–

–

1,730

28

1,759

4,157

4,032

30,278(3,947)34,521

Accumulated other comprehensive income
Total accumulated
Foreign currency
other comprehensive
translation adjustment
incomeBalance at beginning of current period

80

80

Subscription rights toshares4

Total net assets

32,846

Changes of items during period
Change of scope of consolidation

27

Dividends of surplus(1,571)

Transfer of loss on disposal oftreasury shares–

Net income

3,286

Purchase of treasury shares(0)

Disposal of treasury shares

17

Net changes of items other thanshareholders' equity

28

28

(4)

23

Total changes of items during period

28

28

(4)

1,783

Balance at end of current period

108

108

–

34,62911

Fiscal year ended February 29, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current period

Capital surplus

4,157

Retained earnings

4,032

Total shareholders'equityTreasury shares

30,278(3,947)34,521

Changes of items during period
Dividends of surplus(1,521)(1,521)

Net income

4,111

4,111

Purchase of treasury shares

(0)

(0)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

–

–

2,590

(0)

2,590

4,157

4,032

32,869(3,947)

37,111

Accumulated other comprehensive income
Total accumulated
Foreign currency
other comprehensive
translation adjustment
incomeBalance at beginning of current period

108

108

Minority interests

Total net assets–

34,629Changes of items during period
Dividends of surplus(1,521)

Net income

4,111

Purchase of treasury shares(0)

Net changes of items other thanshareholders' equity

(106)

(106)

1,131

Total changes of items during period

(106)

(106)

1,131

3,615

1

1

1,131

38,245

Balance at end of current period

12

1,024

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
February 29, 2016

Fiscal year ended
February 28, 2015
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for merchandise
warranties
Increase (decrease) in provision for directors'
retirement benefits
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of non-current assets
Lease contract cancellation penalty
Impairment loss
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Payments of loans receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Payments of construction assistance fund receivables
Collection of construction assistance fundreceivables
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of shares of subsidiaries and associates
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

13

5,157
1,643
8
(3)

6,610
2,449
274
23

3

126

(540)

(200)

32

33

(19)
42
3
104
24
55

(40)
212
–
67
–
–

3,022

975

(6,071)(7,536)

298

1,236

(324)
(32)
3,403
19
(42)
(3,324)
56

431
556
5,219
40
(212)
(926)
4,121

(5,194)
(686)
(30)
(231)
3
(517)

(5,199)(1,162)
(10)
(356)
69
(763)

98

106

(930)

(1,105)

263

311

(30)
59
(40)

(5)
12
(5)

(1,305)(9,579)1(8,540)1(17,686)

(Millions of yen)
Fiscal year ended
February 29, 2016

Fiscal year ended
February 28, 2015
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Purchase of treasury shares
Proceeds from exercise of share options
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents
resulting from change of scope of consolidation
Cash and cash equivalents at end of period

14

(140)
–
(24)
–
(0)
12
(1,569)(1,721)

1,895
22,680(4,696)(495)(0)–(1,525)
17,8586(34)(10,200)
14,661

4,259
4,863

402

–

4,863

9,122

Non-consolidated financial statements
Non-consolidated balance sheets
As of February 28, 2015

(Millions of yen)
As of February 29, 2016

2,655
3,260
15,355
151
629
821
39
951
(133)
23,731

5,104
2,975
22,163
164
715
808
577
1,776
(175)
34,11011,828
1,882
0
713
218
643
15,287

14,383
2,431
0
815
218
826
18,675

1
0
1,331
14
1,347

1
0
1,937
14
1,954

0
2,341
24

0
12,291
19

1,907

2,969

77

77

198
3,651
3,472
271
101
(87)
11,95928,59352,325

301
4,181
4,304
278
106
(222)
24,30944,93879,048AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Supplies
Prepaid expenses
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
VehiclesTools, furniture and fixtures
Land
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Trademark right
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Long-term loans receivable from subsidiaries
and associates
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long-term prepaid expenses
Lease and guarantee deposits
Construction assistance fund receivables
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

15

As of February 28, 2015

(Millions of yen)
As of February 29, 2016

3,119
4,000
–
1,604
149
97
1,368
2,923
120
436
1,276
515
126
–
0
15,741

4,558
–
2,000
1,930
1,680
489
1,038
2,846
296
455
1,076
582
78
113
–
17,146

–
690
507
1,424
2,622
18,363

22,680
651
540
1,640
25,51142,657

4,157

4,157

4,032
4,032

4,032
4,032

39

39

29,68029,719(3,947)33,96233,96252,325

32,10832,148(3,947)36,39036,39079,048

Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term loans payable
Short-term loans payable
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Accrued expenses
Advances received
Deposits received
Provision for bonuses
Provision for merchandise warranties
Accounts payable - facilities
Unearned revenue
Other provision
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Long-term guarantee deposited
Provision for directors' retirement benefits
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Total capital surpluses
Retained earnings
Legal retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Total net assets
Total liabilities and net assets

16Non-consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Salaries and allowances
Provision for bonuses
Depreciation
Rents
Provision for directors' retirement benefits
Provision of allowance for doubtful accounts
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
LessContractCancelationPenalty
Loss on valuation of shares of subsidiaries
Provision of allowance for doubtful accounts
Other
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income

17

Fiscal year ended
February 28, 2015
153,171
114,992
38,178(Millions of yen)
Fiscal year ended
February 29, 2016
179,367
134,077
45,289

5,740
8,546
419
1,621
5,409
32
9
11,35833,137
5,041

7,068
9,673
423
2,129
6,354
33
40
12,72538,448
6,841

1,020
41
1,062

137
40
177

41
3
34
78
6,024

51
537
45
634
6,384

0
0

0
0

104
55
24
–
–
4
188
5,837
1,352
393
1,746
4,091

64
–
–
31
129
3
229
6,155
2,199
6
2,205
3,949

Non-consolidated statements of changes in equity
Fiscal year ended February 28, 2015
(Millions of yen)
Shareholders' equity
Capital surplus

Balance at beginning ofcurrent period

Capital
stock

Legal
capitalsurplus

4,157

4,032

Other
capitalsurplus–Retained earnings

Total
capitalsurplusLegalretainedearnings

4,032

39

Other
retainedearnings

Total

Total
retainedearnings

Treasuryshares27,172

27,212(3,975)(1,571)(1,571)(1,571)

(11)

(11)

–

4,091

4,091

4,091

Retainedearnings
brought
forwardshareholders'equity31,425

Changes of items during
periodDividends of surplus
Transfer of loss on
disposal of treasury
shares11

11

Net income
Purchase of treasury
shares
Disposal of treasury
shares

(11)

(11)

(0)

(0)

28

17

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

–

–

–

–

–

2,507

2,507

28

2,536

4,157

4,032

–

4,032

39

29,68029,719(3,947)33,962

Subscription
rights tosharesBalance at beginning ofcurrent period

4

Total net
assets31,430Changes of items during
periodDividends of surplus(1,571)

Transfer of loss on
disposal of treasury
shares–

Net income

4,091

Purchase of treasury
shares(0)

Disposal of treasury
shares17

Net changes of items
other than shareholders'equity(4)(4)

Total changes of items
during period

(4)

2,532

Balance at end of current
period–33,96218

Fiscal year ended February 29, 2016
(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings

Legal
capitalsurplusTotal
capitalsurplusLegalretainedearnings

4,157

4,032

4,032

39

Total

Total
retainedearnings

Treasuryshares

29,68029,719(3,947)

Dividends of surplus(1,521)(1,521)(1,521)

Net income

3,949

3,949

3,949

Balance at beginning ofcurrent period

Capital
stock

Other
retainedearnings
Retainedearnings
brought
forwardshareholders'equity33,962

Changes of items during
periodPurchase of treasury
sharesTotal changes of items
during period
Balance at end of current
period

–

–

4,157

4,032

4,032

2,428

2,428

(0)

2,428

39

32,10832,148(3,947)36,39033,962

Changes of items during
periodDividends of surplus(1,521)

Net income

3,949

Purchase of treasury
shares(0)

Total changes of items
during period

2,428

Balance at end of current
period36,390(0)–Total net
assetsBalance at beginning ofcurrent period(0)19