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 Three Months Ended May 31, 2016
(Based on Japanese GAAP)
July 13, 2016
Company name:
Gulliver International Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

7599
President

URL

http://221616.com
Yusuke Hatori

Inquiries:
General Manager, Finance IR Division
Scheduled date to file Quarterly Securities Report:

Masayuki Matsumoto
July 14, 2016

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

Holding of quarterly 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 three months ended May 31, 2016 (from March 1, 2016 to May 31, 2016)(1) Consolidated financial results (cumulative)

Percentages indicate year-on-year changes
Net sales

Three months ended May 31, 2016
Three months ended May 31, 2015

Millions of yen
66,19250,498Operating income% Millions of yen
31.1
1,245
30.0
2,040

Net income per share

Ordinary income% Millions of yen(38.9)
1,173
38.2
2,017

% Millions of yen(41.9)
732
33.9
1,248%(41.3)
37.1

Diluted net income per share

Yen
7.22
12.31

Three months ended May 31, 2016
Three months ended May 31, 2015

Net income

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
108,419
94,211

As of May 31, 2016
As of February 29, 2016

Equity ratioMillions of yen
38,27838,245

Net assets per share%
34.3
39.4

Yen
366.88365.98

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
7.50

Yen–

Yen
5.00

Yen
12.50

6.00

–

6.00

12.00

Year ended February 29, 2016
Year ending February 28, 2017
Year ending February 28, 2017 (Forecast)Total

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
Net income
Operating income
Ordinary income
Net income
per share% Millions of yen% Millions of yen% Millions of yen%
Yen

119,200

25.4

2,600(36.3)

2,350(41.9)

1,350(47.3)

13.31

243,500

15.9

7,600

0.8

7,100

3.9

4,100(0.3)

40.43

1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2016(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) 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:
Changes in accounting policies due to other reasons:

Yes
NoChanges in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of May 31, 2016

106,888,000 shares As of February 29, 2016

106,888,000 shares

Number of treasury shares at the end of the period
As of May 31, 2016

5,480,300 shares As of February 29, 2016

5,480,300 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2016

101,407,700 shares Three months ended May 31, 2015

2101,407,812 shares1. Qualitative information on settlement of accounts for the first three months(1) Qualitative information on consolidated operating results
In the first quarter of the fiscal year under review (March 1 to May 31, 2016), total retail car sales volume at all directly managed stores increasedby 27.0% from the same term last year to 23,396 cars. The increase was supported by growth in both the number of display sales stores and thenumber of cars handled per store.
On the other hand, amid a prolonged slump in the new car market, the total number of cars purchased at directly operated stores remained levelwith the same term last year. The number of customers visiting stores declined, and the Company responded by increasing its advertisingexpenses, mainly for Internet advertising.
Selling, general and administrative expenses increased, mainly due to increases in advertising expenses as mentioned above, personnel expenses
associated with an increase in recruit numbers, expenses related to store operations associated with an increase in the number of display sales
stores, and expenses for structural reforms to attract customers in the future.
As a result of the above, consolidated business results for the first quarter were as follows: consolidated net sales rose by 31.1% from the same
term last year to 66,192 million yen, operating income declined by 38.9% from the same term last year to 1,245 million yen, ordinary income
declined by 41.9% from the same term last year to 1,173 million yen, and profit attributable to owners of parent declined by 41.3% from thesame term last year to 732 million yen.
(2) Qualitative information on consolidated financial position
AssetsTotal assets at May 31, 2016 were 108,419 million yen, an increase of 15.1% from February 29, 2016.
Current assets were 62,577 million yen, an increase of 27.5% from February 29, 2016. This mainly reflected a 17,318 million yen increase in
Cash and deposits, which was partially offset by a 2,732 million yen decrease in Merchandise and a 1,424 million yen decrease in Notes andaccounts receivable-trade.
Non-current assets were 45,841 million yen, an increase of 1.6% from February 29, 2016. This mainly reflected a 757 million yen increase in
Buildings and structures, partially offset by a 367 million yen decrease in Construction in progress.
Liabilities
Total liabilities at May 31, 2016 were 70,140 million yen, up 25.3% from February 29, 2016.
Current liabilities were 25,136 million yen, a decrease of 12.1% from February 29, 2016. This mainly reflected a 1,976 million yen decrease in
Short-term loans payable and a 1,774 million yen decrease in Accounts payable-trade.
Non-current liabilities were 45,004 million yen, an increase of 64.5% from February 29, 2016. This mainly reflected a 17,976 million yen
increase in Long-term loans payable.
Net assets
Net assets at May 31, 2016 were 38,278 million yen, an increase of 0.1% from February 29, 2016. This mainly reflected a 225 million yen
increase in Retained earnings.
(3) Outlook for the fiscal year ending February 28, 2017
The Company has revised its full-year and half-year consolidated results forecasts for the fiscal year ending February 28, 2017. For details pleaserefer to the press release disclosed today (July 13, 2016 ) “Gulliver Announces Revisions to Operating Results and Dividend Forecasts for theFiscal Year Ending February 2017 ”

3

Quarterly consolidated financial statements
Consolidated balance sheets
As of February 29, 2016

(Millions of yen)
As of May 31, 2016

9,1495,192
31,848
778
2,159
(54)
49,074

26,4683,767
29,116
995
2,282
(53)
62,57726,000(8,564)
17,435
435
(180)
255
3,882
(2,874)
1,007
218
826
19,74327,090(8,896)18,193
432
(203)
229
4,060
(2,958)
1,102
218
459
20,202

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

1,996
9,390
3,869
15,256

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

22
45
389
4,766
4,571
307
489
(209)
10,38245,841
108,419

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - tradeMerchandise
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

4

As of February 29, 2016

(Millions of yen)
As of May 31, 2016

14,102
2,045
79
3,064
1,778
3,026
475
459
1,076
113
2,378
28,60012,328
68
71
2,789
663
3,032
406
30
1,088
130
4,526
25,13622,851
651
540
1,653
1,086
388
194
27,36555,96540,827
593
177
1,710
1,064
399
231
45,004
70,140

4,157
4,032
32,869(3,947)
37,111

4,157
4,032
33,095(3,947)37,3371
1
1,131
38,245
94,211

(132)
(132)
1,073
38,278108,419

Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Provision for merchandise warranties
Other provision(Current)
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(Fixed)
Other provision(Fixed)
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 owner shares worth
Total net assets
Total liabilities and net assets

5Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended
Three months ended
May 31, 2015
May 31, 2016
Net sales
50,49866,192
Cost of sales
38,766
51,184Gross profit
11,731
15,007
Selling, general and administrative expenses
9,690
13,761
Operating income
2,040
1,245
Non-operating income
Interest income
714
Insurance premiums refunded cancellation
11–
Reversal of allowance for doubtful accounts–
0
Income from compensation for damage–
35
Other
1357
Total non-operating income
32107
Non-operating expensesInterest expenses
24113
Provision of allowance for doubtful accounts
0–
Consumption tax difference
15–
Foreign exchange losses
522
Other
844
Total non-operating expenses
54180
Ordinary income
2,017
1,173
Extraordinary income
Gain on sales of non-current assets
–
11
Other
0–
Total extraordinary income
011
Extraordinary losses
Loss on retirement of non-current assets
022
Directors' retirement benefits
–
110
Other
00
Total extraordinary losses
0133
Income before income taxes and minority interests
2,017
1,050
Income taxes - current
870
614
Income taxes - deferred(102)(258)
Total income taxes
768356
Net income
1,248
694
Loss attributable to non-controlling interests–(37)
Profit attributable to owners of parent
1,248732

6

Consolidated statements of comprehensive income (cumulative)

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 ofparent
Comprehensive income attributable tonon-controlling interests

7

Three months ended
May 31, 2015
1,248

(Millions of yen)Three months ended
May 31, 2016
694

(0)
(0)
1,248

(154)
(154)
539

1,248

598

–(58)