Gulliver International Co., Ltd.

Consolidated Results
Interim period of the Fiscal year Ending February 28, 2006

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 and beliefs made 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)
Interim results for the fiscal year ending February 28, 2006

Gulliver International Co., Ltd.

October 19, 2005

Stock Code: 7599
http://www.glv.co.jp/
President: Kenichi Hatori
Date of the meeting of the board of directors: October 19, 2005
U.S. GAAP: Not adoptedst

Listed exchanges: Tokyo (1 Section)
Inquiries: Senior Executive Vice President: Ikuo Murata
Telephone: +81 3 5208-5503

1. Consolidated financial results for the interim period ended August 31, 2005
1) Consolidated Operating Results

Millions of yen, rounded downInterim period ended
August 31, 2005

Interim period ended
August 31, 2004(% change)

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

86,783
3,490
3,463
1,633
163.07161.0831.1(10.6)(11.3)(25.4)---

Fiscal Year ended
February 28, 2005(% change)

66,154
3,907
3,907
2,192
216.18210.04

19.3
30.5
29.5
43.6
---

(% change)

156,696
10,22910,2195,652
548.86537.88---Notes to the preparation of these financial statements:
1. Investment gains and losses under equity method: Interim period of FY ending February 2006: ¥ --; Interim period of FY ending February 2005:¥ --; Full year ended February 2005: ¥ --.
2. Average number of shares outstanding during the period: Interim period of FY ending February 2006 – 10,017,053;
Interim period of FY ended February 2005 – 10,142,562; FY ended February 2005 – 10,127,471
3. Differences in accounting treatments applied compared to previous consolidated fiscal year: None
4. 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 August 31, 2005

As of August 31, 2004

As of February 28, 2005

Total assets......................................................

34,33627,232

34,529

Shareholders’ equity ........................................

15,311

16,605

16,143Equity ratio (%) ................................................
Shareholders’ equity per share (¥) ...................

44.5
1,539.49

61.0
1,636.74

46.7
1,603.84

Note:
Number of shares outstanding (consolidated) at end of period: Interim period of FY ending February 2006: 9,945,687; Interim period of FY ended
February 2005: 10,145,427; FY ended February 2005: 10,007,067.

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 ....

Interim period ended
August 31, 2005
1,261
(2,844)
1,886
4,599

Interim period ended
August, 2004
834
(2,283)
(875)
6,300

Fiscal Year ended
February 28, 2005
2,724
(5,791)(1,427)4,1304) Items for scope of consolidation and application of the equity method
Number of consolidated subsidiaries: 6; Number of non-consolidated subsidiaries under the equity method: 0; Number of affiliated companies underthe equity method: 0; Changes in the scope of consolidation and companies accounted for by the equity method: 3 companies newly consolidated.

3. Forecasts for the fiscal year ending February 28, 2006 (March 1, 2005 to February 28, 2006)
Millions of yen, rounded down

FY ending February 28, 2006
Sales .......................................................................................
Ordinary income......................................................................
Net Income..............................................................................
Earnings per share (¥) ............................................................

181,900
10,3005,000
502.73

Forecasts and forward-looking statements in this document are based on a number of assumptions and beliefs made bymanagement in light of information currently available. Actual financial results may differ materially depending on a number offactors, including economic conditions, legislative and regulatory− 1 − developments, delay in new product or service launches, andpricing and product initiatives of competitors.

1. Group Overview
The Group is composed of the Company and 8 subsidiaries of the Company and is engaged
in the business of sales of used cars and franchising operations.
A systematic diagram of the Group’s businesses is presented
below:S

The Company
Gulliver International Co., Ltd.

Consolidated subsidiary

Hucobo Co., LtdS

Outlets with on-screen
selling system
S

On-screen

S

S

F

F
F

selling

F

E
Contract party, members
F

web GAuc member
GiPAS member
Other affiliated parties

Franchisee

Procurement dealer Gulliver

E
F

Overseas consolidated
subsidiary

Consolidated subsidiary

Gulliver Europe Ltd.

G-One Financial Service Co., Ltd.

S
S

Consolidated SubsidiaryS

G Trading Co., Ltd.
S

Overseas non-consolidated
subsidiaryS

Gulliver USA, Inc.
Main flow of vehicles
Financing, insurance relationship
Contractual relationship
Graphical selling systems

S−Used car sales

F−Franchise operation

E −Other businessNo designation indicates non-involvement− 2 −General consumers and other companies

Automobile Auction Sites

General consumers and other companies

Procurement dealer Gulliver2. Management Policy
1. Basic management policy
Gulliver has adopted ‘Growing together’ as its corporate philosophy and, under the principle ofcoexistence and mutual prosperity, the company is striving to become a corporation that is wellregarded by community and society as well as all those involved with the Group, including
customers, employees, partners and shareholders. Under this philosophy, Group management
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 support the ‘car life’ of
our customers.
2. Basic policy concerning distribution of profits
We have identified the return of profits to investors as an important management issue and also
place emphasis on our dividend payout ratio. We consider the return of profits appropriate toresults to be a fundamental management principle.
With the intention of further increasing profits and increasing corporate value, as well as
strengthening competitiveness and improving services, retained capital will be used to carry out
effective and efficient investments in such areas as the launch or relocation of directly-owned
stores and replacement stores (re-locating or launching at new locations), the strengthening ofinternal infrastructure, and the development and training of personnel.
3. Management targets
We consider return on equity (ROE) to be an important management financial indicator and aim
to maintain ROE above 10% over the medium to long term. Further, we are aiming to achieve a
Gulliver Group annual purchase volume of one million cars.
4. Mid- to long-term management strategy
We have set an annual purchase volume of one million cars as a specific objective, with the aimof securing a dominant market share in the used car industry. We feel that, in order to realize ourgoal of bringing about a revolution in the distribution of cars, this is the volume necessary toensure a dominant number one position in the industry. In order to achieve this goal, thefollowing measures are being taken:
・Creating a low cost operation
・Improving productivity at each store
・Increasing launches of directly operated stores・Enhancing brand power and recognition
・Improving service quality and customer satisfaction
・Maintaining personnel and strengthening the development and training structure
・ Expanding sales channels, utilizing ‘Dolphinet System’ and ‘GAO! Auction’
5. Tasks ahead
In Japan’s very large market for used vehicles, where eight million vehicles (including buses,− 3 −trucks, etc.) are registered each year, there are a range of issues that must be addressed by theGroup in order to achieve a dominant market share and improve profitability. As part of ourstrategic marketing activities, these include further enhancing our brand power, broadening ourcustomer base through improving brand recognition in a wide range of age groups, making
qualitative improvements in service and customer satisfaction, and strengthening operations
through personnel development and training.
6. Corporate governance and related initiatives
Basic policies regarding corporate governanceIn order to maximize corporate value, we are working to enhance corporate governance focusedon the board of directors and auditing system.
In a rapidly changing management environment, we have rationalized the board of directors andintroduced an executive officer system. In addition, we have adopted a functional organizational
system that places emphasis on flexibility, and at the same time we are introducing measures
such as the promotion of organizations and projects that cross divisional boundaries to provide
dynamism to the organization.
We intend to continue taking active measures to further enhance corporate governance.
Overview of corporate governance initiatives(1) Management administration bodies and other corporate governance systems related toGroup management decision making, execution and auditing
We will continue to employ an auditor system, and currently have three auditors, two of which areexternal auditors.
In order to maintain strategic flexibility in a rapidly changing business environment, in 2001 we
reduced the number of directors with the aim of speeding up management decision making and,at the same time, introduced an executive officer system to clarify business execution
responsibilities. We have strengthened our management monitoring systems through the
improvement of our internal legal division and the establishment of internal audit systems as well
as receiving advice and guidance from external lawyers and accounting auditors.
In September 2005, under our new framework, we established a Compliance Committee andcreated a compliance framework to strictly and effectively adhere to all legal obligations. Further,
we are currently involved in the establishment of a crisis management framework to handle latentinternal and external risks, and are strengthening our IR and PR structure in order to cope with
unforeseen occurrences.
(2) Overview of personal, capital or business relationships between Gulliver and its external
directors and auditors and any other interests
Neither of the two external auditors currently employed by the company have any personal
relationship with other auditors or directors, nor does either have any special interests within the− 4 −Group.
(3) Overview of measure taken to enhance corporate governance in the 12 months ended
August 31, 2005.
Recognizing that each director plays an important role as a member of the management
decision-making body, we have strengthened the functions not only of the board but also of arange of administrative meetings, while also clearly delegating responsibilities and defining
authorities at executive officer level and below, with the aim of continually improving the flexibility
and capability of our management.
In addition, as stated above, in September 2005, we established a Compliance Committee andare strengthening our investor relations and corporate communications structure.

− 5 −3. Operating Results and Financial Position(1) Outline of consolidated interim operating results
Gulliver operates 264 directly operated stores involved in the purchase and sale of cars (16 morethan at the end of the previous fiscal year) and has 230 affiliated stores (19 fewer than at the endof the previous fiscal year). In total, Gulliver operates 494 stores (three fewer than at the end of
the previous fiscal year. In our directly owned store operations, we opened new branches andreplacement stores (relocating or launching new stores), and through improving brandrecognition and marketing activities were able to increase the number of customers per store andalso the number of vehicles handled. The Company has contracted Hideki Matsui of the New
York Yankees as its campaign personality and is undertaking a comprehensive marketing andpublic relations activities. Although employee numbers were increased to a level higher thaninitially expected at the beginning of the period, staff training was insufficient in some respects
and the efficiency of investments in marketing and personnel costs was somewhat impaired. In
affiliated stores, even though the number of stores decreased slightly, they continued to perform
well in numbers of cars handled.
We are continually engaged in improving the capabilities of our personnel, and in line with theincrease of our store network have been recruiting and focusing training efforts on employees at
new directly operated stores employees. Our efforts to improve our strategic position include a
range of training methods, including OJT (on-the-job training), and we are continuing to adopt
measures aimed at improving our sales and management approach.
Vehicles handled by Gulliver are sold quickly, with an average timeframe of only one week to tendays required to achieve a sale via channels that include auction sites throughout Japan, theCompany’s unique on-screen selling system ‘Dolphinet’, and GAO! Auction, the internet based
real-time auction aimed at used-car dealers. GAO! Auction was launched in January 2005 andas of August 2005 had around 18,000 members. It is also performing well, with a closure rate ofaround 40%.
There are currently four subsidiaries of Gulliver International: G-Trading Co., Ltd., the second
hand truck, bus and construction vehicles purchase, sales and export company (listed on
JASDAQ in November 2006); G-One Financial Service Co., Ltd., the consolidated auto-loan andfinancial business subsidiary; Gulliver Europe Ltd., which aims to limit risks in future businessactivities; and Hakobo Co., Ltd. which was registered in June 2004 and is mainly involved in the
car transportation business. The Group also contains Gulliver USA, INC., a non-consolidated
affiliate that is involved in the purchase and sale of second-hand cars in the U.S.
At G-Trading, the dealer network was improved and relationships with customers were
strengthened through initiatives such as expanding the workforce and creating new branches inTokyo and Osaka in March. G-Trading is also striving to broaden marketing outlets overseas.
However, ordinary income decreased in the interim period under review. Although sales
revenues increased due to an increase in the number of relatively new cars with a high unit price− 6 −that were handled, purchase prices also increased and the continuing high price of fuel reduced
the number of vehicles handled. Profit margins fell due to the higher proportion of older vehicles
sold.
During the interim period under review, G-Trading began consolidated accounting, withsubsidiary company Samurai Motors Co., Ltd. and joint-stock company G-Bus., Ltd. included in
the scope of consolidation.
Consolidated subsidiary G-One Financial Services Co., Ltd. (“G-One”) recorded an ordinary loss
for the interim period under review. During the period, G-One began full-fledged sales ofautomobile loan products. As a result, from the current interim period Gulliver has been receiving
loan rebates from G-One for automobile loan contracts. Previously, Gulliver received rebatesfrom outside companies, through the provision of loan services from other companies.
Income from automobile loans sold by G-One (a certain proportion of the total credit provided) isrecorded on a deferred basis, whereas rebates are recorded as a one-time expense, and in theinterim period under review this led to a loss at the ordinary income level. We had expected thatin the case of securitization of loan receivables, income could be recorded as a lump sum, but
the Company now understands that recording income on a deferred basis is the appropriate
accounting treatment.
The business development of G-One is proceeding steadily, and as of August 31, 2005 the total
amount of deferred financial income had reached approximately ¥900 million.
Hakobo Co., Ltd. began operations in earnest from this period, with expenses relating tobusiness establishment resulting in an ordinary loss.
As a result of the factors noted above, consolidated net sales for the interim period under review
increased 31.1% (¥20,629 million) to ¥86,783 million and operating income decreased 10.6%(¥416 million) to ¥3,490 million. Ordinary income decreased 11.3% (¥443 million) to ¥3,463
million and net income decreased 25.4% (¥559 million) to ¥1,633 million.

− 7 −Performance by Segment
Sales of used automobiles
Net sales in this business area increased 32.4% (¥20,229 million) from the previous interim
period to reach ¥82,567 million, and operating income increased 26.0% (¥1,008 million) to¥4,878 million.
Although there was a slight decline in the average unit price and gross profit margin per vehicle
sold during the interim period under review, there was a steady increase in the number ofvehicles handled. With continued business development, SG&A expenses are increasing, but
operating income is increasing in line with the rise in net sales.
Franchising businessNet sales in the franchising business increased 10.4% (¥399 billion) to ¥4,215 million comparedto the previous interim period, while operating income decreased 53.8% (¥902 million) to ¥774
million.
Due to the decrease in the number of Gulliver affiliated stores, revenue from this area of thebusiness decreased. However, the development of GAO ! Auction and GiPAS resulted in higher
revenue from commissions and subscriptions, even though the operating expense ratio
increased.

(2) Financial position
For the interim period of the fiscal year ending February 28, 2006, cash flow from operating
activities and financing activities was positive. Cash flow from investment activities was negative,
while overall cash flow was a positive figure of ¥304 million. The balance of cash and cash
equivalents as of August 31, 2005 was ¥4,599 million.
Cash flow from operating activities
Cash and cash equivalents (“cash”) generated from operating activities was ¥1,261 million.
Principal components of this included interim net income before adjustment for taxes of ¥3,255
million, a decrease in receivables of ¥3,871 million and an increase in inventories of ¥958 million.
Cash flow from investment activities
Net cash used in investment activities was ¥2,844 million. The principal factors contributing tothis result were investment in the opening of new directly operated stores and in internal
systems.
Cash flow from financing activities
Net cash produced from financing activities was ¥1,886 million. This was primarily due to anincrease in loans.
− 8 −Trends in cash flow-related indicesInterim period of
FY ended Feb.
2004
Equity ratio (%)
Equity ratio based onmarket price (%)
Debt service coverage(years)Interest coverage ratio(times)Fiscal year
ended Feb. 2004

Interim period of
FY ended Feb.
2005

Fiscal year
ended Feb. 2005

Interim period of
FY ending Feb.
2006

64.2

59.3

61.0

46.7

44.5

231.9

338.6

438.5

443.4

357.7

0.4

0.1

0.8

1.4

6.5

346.5

604.2

181.4

192.8

92.4

Notes: 1. Calculation method for indices:* Equity ratio = total shareholders’ equity / total assets* Equity ratio based on market price = market capitalization / total assets* Debt service coverage ratio = interest-bearing debt / operating cash flow
* Interest coverage ratio = operating cash flow / interest payments
2. All indices are calculated from consolidated financial results figures.
3. Market capitalization = market price on last trading day of period x total shares
outstanding at end of period (excluding treasury stock)(3) Outlook for the full year
Gulliver intends to pursue higher profits, seeking to increase the number of vehicles handled by
opening new stores and growing customer counts, and pursuing low cost operations.
With respect to the outlook for the full year ending February 2006, there have been no changes
to the non-consolidated forecasts announced on April 19, 2005, which were for net sales of¥167,200 million, ordinary income of ¥11,100 million and net income of ¥6,100 million.
Consolidated forecasts for the year ending February 2006, taking into account the performanceoutlook for consolidated subsidiaries, are for net sales of ¥181,900 million, ordinary income of¥10,300 million, and net income of ¥5,000 million.
Note: The above figures do not include consumption tax.

− 9 −Consolidated Balance Sheets
As of August 31,
2005% of total

ASSETS

Millions of yen
As of August 31,
2004

As of February 28,
2005% of total% of total

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

4,599

4,130

6,300

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

6,848

10,015

3,332

Marketable securities.............................

--

--

237

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

5,621

4,555

4,330

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

457

549

396

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

2,038

1,813

1,511

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

(53)

(84)

(32)

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

19,512

56.8

20,98060.8

16,07759.0

Fixed assets
Tangible fixed assets
Buildings and structures ........................

5,756

5,340

4,646

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

1,227

1,099

908

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

327

327

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

210

260

327
49

Total tangible fixed assets

7,521

21.9

7,026

20.4

5,932

21.8

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

2,681

2,187

1,669

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

99

103

101

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

2,781

8.1

2,290

6.6

1,770

6.5

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

270

373

254

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

2,365

2,185

2,022

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

1,432

960

707

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

104

135

168

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

668

892

590

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

(320)

(314)

(290)

Total investments and other assets......

4,521

13.2

4,231

12.2

3,452

12.7

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

14,82443.2

13,54839.2

11,15541.0

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

34,336100.0

34,529100.0

27,232100.0− 10 −

Consolidated Balance Sheets
Millions of yen
As of August 31,
2005
LIABILITIESAs of February 28,
2005%

As of August 31,
2004
%

%

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

2,993

5,734

2,409

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

8,250

3,950

750

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

2,258

2,272

2,280

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

1,556

2,677

1,703

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

703

767

707

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

576

519

442

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

1,698

1,513

1,511

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

18,03652.5

17,435

50.5

9,803

36.0

Long-term liabilities
Guarantee deposits received ..................

643

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

643

1.9

621
621

1.8

625

625

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

18,68054.4

18,05652.3

10,429

345

1.0

328

1.0

197

4,157

12.1

4,139

12.0

3,962

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

4,032

11.8

4,014

11.6

3,838

Retained earnings .................................
Unrealized gains and losses in othersecurities .................................................

14,04040.9

13,66839.6

11,046

50

0.1

10

0.0

13

0.0

Translation adjustments ..........................
Treasury stock ........................................

(0)(6,969)(0.0)(20.3)-(5,689)-(16.5)-(2,256)-(8.3)

Total capital........................................

15,311

44.6

16,14346.7

16,60561.0

Total Liabilities, Minority Interests
and Shareholders’ Equity.......................

34,336100.0

34,529100.0

27,232100.0

2.3

MINORITY INTERESTS
Minority interests.....................................

0.7

CAPITAL
Paid-in capital .........................................

− 11 −

Consolidated Statements of Income
Millions of yen
March 1, 2005 toAugust 31, 2005

March 1, 2004
to August 31, 2004

March 1, 2004
to February 28, 2005%%%
Sales .....................................................

66,154100.0

156,696 100.0

76.5

49,80475.3

118,089

75.4

20,42423.5

16,35024.7

38,607

24.6

16,93419.5

12,44218.8

28,377

18.1

3,490

4.0

3,907

5.9

10,2296.5

86,783

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

66,359Gross profit.....................................
Sales general and administrative
expenses............................................
Operating income

100.0

Non-operating income ........................
Interest received ...............................

1

0

2

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

0

3

3

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

3

1

3

Investment fund income....................

--

--

11

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

34

17

33

Total non-operating income

38

0.1

23

0.0

53

0.0

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

14

4

12

New shares issuance expense .........

5

0

7

Addition to reserve for doubtful
accounts ...........................................

--

2

--

Cancellation penalties................... ...

7

4

11

Investment fund valuation loss...... ...

3

--

17

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

34

12

15

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

65

0.1

23

0.0

64

0.0

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

3,463

4.0

3,907

5.9

10,219

6.5

Extraordinary profit .......................... ...
Gains on sales of fixed assets ..........

--

0

--

Gains on sales of investment
securities .................................... ...

45

--

--

Insurance gains .......................... .....

2

0

--

Reversals of reserve for doubtful
accounts ..................................... .....

24

41

--

Gain on reorganization of relatedcompanies .................................. .....

--

--

82

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

1

--

7

Total extraordinary profit

73

0.1

41

0.0

90

0.1
0

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

162

1

247

Insurance losses...............................

119

--

--

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

--

0.3

--

4

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

281

0.1

1

0.0

251

0.2

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

3,255

3.8

3,947

5.9

10,058

6.4

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

1,522

1.9

1,673

2.5

4,402

2.8

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

95

36

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

3

44

0.1

84

0.0

2,192

3.3

5,652

3.6

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

0.0− 12 −
1,633
1.9

(81)

Consolidated Statement of Surplus
March 1, 2005 toAugust 31, 2005

March 1, 2004 to
February 28, 2005

Millions of yen
March 1, 2004 to
August 31, 2004

Capital Surplus
4,014

3,943

3,943

Issuance of new shares through capital increase ........

17

184

7

Gains on disposal of treasury stock .........................

---

(113)

---

Losses on disposal of treasury stock .......................

---

---

113

Capital surplus at end of period .................................

4,032

4,014

3,838

13,669

9,927

9,727

1,633

5,652

2,192

Dividends.....................................................................
Directors’ bonuses .......................................................

1,000

1,341

94

83

757
83

Losses on disposal of treasury stock ...........................

167

287

32

Reduction resulting from new consolidation.................

0

---

---

Retained earnings at end of period ............................

14,04013,668

11,046

Capital surplus at beginning of period.......................
Increase in capital surplus

Reduction in capital surplus

Retained earnings
Retained earnings at beginning of period .................
Increase in retained earnings
Net income for the period.............................................
Reduction in retained earnings− 13 −

Consolidated Statements of Cash flows
March 1, 2005 toAugust 31, 2005

March 1, 2004 to
August 31, 2004

Millions of yen
March 1, 2004 to
February 28, 2005

I. Cash flow from operating activities
Income before taxes, etc............................................................

3,255

3,947

10,058Depreciation ...............................................................................

890

546

1,383

Increase (decrease) in reserve for bonuses...............................

56

61

139

Increase (decrease) in allowance for doubtful accounts ............

(26)

(39)

37

Interest and dividends received .................................................

(1)

(3)

(5)

Interest paid ...............................................................................

14

4

12

New share issuance expenses ..................................................

5

0

7

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

―
162

(0)
1

―
247

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

(45)

Payment of directors’ bonuses...................................................

(94)

―
(83)

―
(83)

Gain on sale of fixed assets .......................................................

Increase (decrease) in accounts receivable...............................

3,871

2,027

(4,757)

Increase (decrease) in inventory................................................

(958)(2,343)(2,559)

Increase (decrease) in accounts payable ..................................

(2,334)

(278)

2,657

Increase (decrease) in accrued consumption tax ......................

54

(246)

(200)

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

(875)

(257)

54

Subtotal ......................................................................................

3,976

3,336

6,990

Interest and dividends received .................................................

0

4

6

Interest paid ...............................................................................

(13)

(4)

(14)

Corporate taxes paid..................................................................

(2,701)(2,501)(4,257)

Cash flow from operating activities..........................................

1,261

834

2,724

Proceeds from sale/redemption of marketable securities ..........

―

―

228

Payments for purchase of investment of securities....................

―

(100)

Proceeds from sale of investment securities..............................

―
212

Payments for acquisition of tangible fixed assets ......................

(1,092)―(1,239)―(3,565)

II. Cash flow from investing activities

Proceeds from sale of tangible fixed assets...............................

0

0

0

Payments for acquisition of intangible fixed assets....................

(1,013)(629)(1,322)Acquisition of shares of affiliates................................................

(10)

(21)

(224)

Amounts lent ..............................................................................

(3)

(4)

(105)

Proceeds from repayment of loans ............................................

12

85

118

Increase (decrease) in short-term borrowing .............................

8

(22)

(14)

Deposit and guarantee payments ..............................................

(949)

(454)

(832)

Proceeds from repayment of investments..................................
Other ..........................................................................................

―
(8)

―
(0)

(0)

Cash flow from investing activities ..........................................

(2,844)(2,283)(5,791)

Net increase (decrease) in short term borrowings .....................

4,300

200

3,400

Payment of installment obligations.............................................

(0)

Payments for acquisition of treasury stock.................................

―(1,545)(628)―(4,512)491

26

III. Cash flow from financing activities

Proceeds from disposal of treasury stock ..................................

98

295

Proceeds from issuance of new shares .....................................

30

15

367

Payment of dividends.................................................................

(1,000)(757)(1,341)

Payments from minority shareholders........................................

3

―

167

Cash flow from financing activities ..........................................

1,886

(875)

(1,427)

IV. (Decrease) increase in cash and cash equivalents ..........

304(2,324)(4,494)

V. Cash and cash equivalents at beginning of period ...........

4,295

8,624

8,624

VI. Cash and cash equivalents at end of period.....................

4,599

6,300

4,130

− 14 −

Material Items Forming the Basis for the Preparation of the Interim Consolidated
Financial Statements
Item
1.Items relating to thescope ofconsolidation

March 1, 2005 - August 31,

March 1, 2004 - August 31,
2004

2005
(1) Number of consolidated
subsidiaries: 6
G Trading Co., Ltd.
G One Financial Service
Co., Ltd.
Hucobo Co., Ltd.
Samurai Motors Co.
G-Bus., Ltd.

G Trading Co., Ltd.
E Investment Co., Ltd.
Gulliver Europe Ltd.

(Change in scope of
consolidation)
Of the above Hucobo Co.,
Ltd. has been included in
the scope of consolidation
as its importance to theinterim financial statements
has increased.
(2) Non-consolidated
subsidiaries:
Gulliver USA Inc. andCarbross
Reasons for exclusion fromconsolidation:
Gulliver USA, Inc. and Carbross
are small and their total assets,
sales, interim net income andretained profit do not significantly
influence the interim consolidated
financial statements.
2. Application of theequity method

Non-consolidated subsidiaries
and affiliates to which the equity
method is not applied:Gulliver USA Inc. andCarbross
Reasons for not applying theequity method: The effect of thecompanies on the interim net
income and retained profit isimmaterial and their overall
importance is low.

March 1, 2004 - February
28, 2005(1) Number of consolidated
subsidiaries: 3
G Trading Co., Ltd.
G One Financial
Service
Gulliver Europe Ltd.
Note: E-Investment
Co., Ltd. has changed
its name to G One
Financial Service Co.,Ltd.

(2) Non-consolidated
subsidiaries: Hucobo(2)Non-consolidated
subsidiaries: Hucobo Co.,
Ltd. and Gulliver USA Inc.

Reasons for exclusion fromconsolidation:
Hucobo is small and its total
assets, sales, interim net
income and retained profit donot significantly influence theinterim consolidated financial
statements.

Reasons for exclusion fromconsolidation:
Hucobo and Gulliver USA
Inc. are small and their total
assets, sales, interim net
income and retained profit donot significantly influence theinterim consolidated financial
statements.

Non-consolidated
subsidiaries and affiliates towhich the equity method is
not applied: Hucobo

Non-consolidated
subsidiaries and affiliates towhich the equity method is
not applied: Hucobo andGulliver USA Inc.
Reasons for not applying theequity method: The effect of
the companies on the interim
net income and retained profit
is immaterial and their overall
importance is low.

Reasons for not applying theequity method: The effect of
the company on the interim
net income and retained profit
is immaterial and its overall
importance is low.

− 15 −

3. Items relating to the(interim) settlement
days ofconsolidated
subsidiaries

Items relating toaccounting
treatment(1) Valuation criteria
and valuation
methods formaterial assets

March 1, 2005 - August 31,
2005

March 1, 2004 - August 31,
2004

March 1, 2004 - February
28, 2005

Of the consolidated subsidiaries,
Gulliver Europe Ltd. and Samurai
Motors Co. have interim
settlement dates (June 30) thatdiffer from the Consolidated
Interim Settlement Date (August31). In preparing theConsolidated Interim Financial
Statements, as the gap between
the settlement dates does notexceed 3 months, consolidationis performed based on the said
subsidiaries’ interim financial
statements. For materialtransactions occurring between
the interim settlement dates
necessary consolidation
adjustments are made.

Of the consolidated
subsidiaries, Gulliver Europe
Ltd. has an interim settlement
date (June 30) that differsfrom the Consolidated Interim
Settlement Date (August 31).
In preparing the Consolidated
Interim Financial Statements,
as the gap between thesettlement dates does notexceed 3 months,
consolidation is performed
based on the said subsidiary’s
interim financial statements.
For material transactions
occurring between the interim
settlement dates necessary
consolidation adjustments are
made.

Of the consolidated
subsidiaries, Gulliver Europe
Ltd. has a settlement date
(December 31) that differsfrom the Consolidated
Settlement Date (endFebruary). In preparing theConsolidated Financial
Statements, as the gap
between the settlement
dates does not exceed 3
months, consolidation is
performed based on the said
subsidiary’s financial
statements. For materialtransactions occurring
between the settlement
dates necessary
consolidation adjustments
are made.

1. Marketable securities
Bonds intended to beheld to maturity:

1. Marketable securities
Bonds intended to be held
to maturity:

1. Marketable securities
Bonds intended to beheld to maturity:

4.

Amortizing cost method (straightline)
Other marketable securitiesThose with a market price:
Valued by the market method
based on the market price as at
the interim settlement date.
Valuation gains or losses aretaken direct to capital and thebook value is determined bymoving average method.

As at left

As at left

Other marketable securitiesThose with a market price:

Other marketable securitiesThose with a market price:
Valued by the market
method based on themarket price as at thesettlement date. Valuation
gains or losses are taken
direct to capital and thebook value is determinedby moving average method.

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

Those without a market
value:
As at left
Shareholdings in subsidiaries:.
Those without a market value:
The cost method using the moving
average method
Shareholdings in subsidiaries:

As at left
The cost method using themoving average method
2. Derivatives
2. Derivatives
Market method
As at left
3. Inventories
3. Inventories
A. Merchandise
A. Merchandise
Vehicles: Actual cost method
Vehicles: As at left
Other: Cost method under first in,
Other: As at left
first out method
B. Supplies:
B. Supplies:
Cost
methodunder
last
As at left
purchase method− 16 −

2. Derivatives
As at left
3. Inventories
A. Merchandise:
Vehicles: As at left
Other: As at left
B. Supplies:
As at left

March 1, 2005 - August 31,
2005(2) Depreciation
methods applied
to material
depreciable
assets(3) Treatment ofdeferred assets(4) Criteria forrecordingmaterial
reserves(5) Treatment ofmaterial leasetransactions

March 1, 2004 - August 31,
2004

March 1, 2004 - February
28, 2005(i) Tangible Fixed Assets
The Declining Balance Method is Fixed Assets
applied. However, for buildings
As at left
(excluding attached equipment)
acquired since April 1, 1998, theStraight Line Method has been
applied. The useful lives are as
follows:
Buildings and Structures: 15 – 20
years(i) Tangible Fixed Assets
Declining Balance Method isapplied. However, forbuildings(excluding attachedequipment)
acquired since April 1, 1998,
the Straight Line Method has
been applied. The useful
lives are as follows:
Buildings and Structures: 15– 20 years
Vehicles and transportationequipment: 2-6 years(ii) Intangible Fixed Assets(ii) Intangible Fixed Assets
The Straight Line Method isapplied. However, with respect
As at left
to software for internal use, theStraight Line Method based on
useful lives for internal use (5years) has been applied.
(iii) Long Term Prepaid Expenses (iii) Long Term Prepaid
Straight Line Method is
Expenses
applied(ii) Intangible Fixed Assets

New share issue expenses

As at left(iii) Long Term Prepaid
Expenses
As at left

As at left
New share issue expenses

New share issue expenses

As at left

As at leftExpensed in their entirety at thetime of expenditure(i) Reserve for Doubtful Accounts (i) Reserve for Doubtful
To prepare for the losses
Accounts
occurring from bad loans, with
As at left
respect to general claims
the Actual Bad Loan Rate isapplied. Specific claims, such as
those where there are concernson the probability of recovery, areassessed on an individual basis
and estimated unrecoverable
amounts are(ii) Reserve for Bonuses
recorded.
(ii) Reserve for Bonuses
As at left
To prepare for the payment ofbonuses to employees, amounts
are recorded based on theestimated payment amount.
Financing leases other than thoselease assets whose title isdeemed to pass to the lessee
have been accounted for inaccordance with methods applied
to normal lease transactions.

− 17 −

As at left(i) Reserve for Doubtful
Accounts

As at left(ii) Reserve for Bonuses
As at left

As at left

March 1, 2005 - August 31,
2005(6) Material hedge
accounting(7) Other material
items in the
preparation of theconsolidated
financial statements
5. Definition of cash in
the consolidated
statements of cash
flow

March 1, 2004 - August
31, 2004

March 1, 2004 - February
28, 2005(i) Method of Hedge Accounting(i) Method of Hedge(i) Method of Hedge
According to Deferred Hedge
Accounting
Accounting
Treatment
As at left
As at left(ii) Hedging Tools and Hedge
Target(ii) Hedging Tools and Hedge (ii) Hedging Tools and Hedge
Hedging Tools – Interest Rate
TargetTargetSwap
Hedge Target - Borrowings
As at left
As at left(iii) Hedging Policy
Interest Rate Swap transactions (iii) Hedging Policy(iii) Hedging Policy
are entered into for the purpose
As at left
As at leftof hedging the risk of interest
rate fluctuation on the
borrowings and entered into for(iv) Method of evaluating (iv)Method of evaluating hedge
only the target obligations.
effectiveness(iv) Method of evaluating hedge hedge effectivenesseffectivenessAs at left
As at left
Target Cumulative market
fluctuation of the hedge target
and the hedge tool are compared
during the period from theinitiation of the hedge to the timeof assessing the effectivenessand the evaluation
is made based on the variance ofthe two values.

Accounting treatment for
Consumption Tax
Tax Exclusion Method isapplied in the accounting
treatment of Consumption Tax

Accounting treatment for

Accounting treatment for

Consumption Tax

Consumption Tax

As at left

As at left

As at left

As at left

Cash on hand, deposits that canbe withdrawn as needed, andshort term investments that areeasily convertible into cash andthat have low risk of fluctuation invalue and whose maturities are 3
months or less at the date ofacquisition− 18 −

Changes in Accounting Treatment
March 1, 2005 - August 31, 2005

March 1, 2004 - August 31, 2004――――――(Method of presentation of Gains from
Sale of Courtesy Cars and Procurement
Expenses for Courtesy Cars)
In the previous consolidated fiscal year
the acquisition expense and gains on saleof vehicles to be used as courtesy cars
were presented as “Gains on Sale ofCourtesy Cars” in Non-Operating Income
but due to the fact that in many casessuch cars were sold after use and in
addition to a change in policy to actively
market the vehicles in the same way
as other used vehicles the number of cars
sold has been increasing resulting in theincreased materiality. Thus, the amount of
the proceeds of such sales has beenrecorded in Sales while the cost of
acquisition has been included in Cost ofGoods Sold.
The impact of the change is not material.

March 1, 2004 - February 28, 2005

As at left

Changes to presentation method
Interim period ended August 31, 2005-----

Interim period ended August 31, 2004

Display of Construction cooperation money
Due to the large increase in Construction cooperation
money, recorded in Investments and other assets thisinterim period, this amount has been recorded separately.
Construction cooperation money this interim is ¥285 million− 19 −

Additional information
March 1, 2005 - August 31, 2005
(Treatment of the tax based on business size portionof corporate taxes in the statements of income)Following the promulgation of ‘Treatment of the tax
based on business size portion of corporate taxes in
the Statements of Income’ (February 13, 2004,
Corporate Accounting Standards Committee Practice
Report 12), from this interim accounting period the
proportionate amounts of corporation tax on value
added and capital have been included in Selling,
General and Administrative expenses. As a result
Selling, General and Administration expenses
increased by ¥58 million and operating income,ordinary income and income before taxes, etc. eachdecreased by ¥58 million.

March 1, 2004 - August 31, 2004

March 1, 2004 - February 28, 2005――――――――――――− 20 −

Notes（Related to the consolidated balance sheets）
August 31, 2005

August 31, 2004

February 28, 2005

Accumulated Depreciation of Tangible
Accumulated Depreciation of
Accumulated Depreciation of
Fixed Assets
Tangible Fixed Assets
Tangible Fixed Assets¥2,974 million¥2,456 million¥2,695 million(Related to the consolidated statements of income)March 1, 2005 - August 31, 2005
1. Principal components of SGA
expenses
Advertising
Contracting fees
Salaries
Bonuses
Transfer to reservefor doubtful
accounts
Transfer to reserve
for bonuses
Depreciation
Rent(Millions of yen, rounded down)

March 1, 2004 - August 31, 2004
1. Principal components of SGA
expenses

2,975
857
4,151
337
―

Advertising
Contracting fees
Salaries
Bonuses
Transfer to reservefor doubtful
accounts
Transfer to reserve
for bonuses
Depreciation
Rent

852
890
1,688

March 1, 2004 - February 28, 2005
1. Principal components of SGA
expenses

1,822
622
3,153
376
―
442
546
1,335

Advertising
Contracting fees
Salaries
Bonuses
Transfer to reservefor doubtful
accounts
Transfer to reserve
for bonuses
Depreciation
Rent

4,737
1,618
6,912
1,290
39
519
1,383
2,899

2. Components of gains on sales of
fixed assets.
Vehicles andtransportationequipment
2.

Components of losses on disposalof fixed assets
Buildings andstructures
Vehicles andtransportationequipment
Tools & equipment
Total

143

3.

0

Components of losses on disposal 2. Components of losses on disposalof fixed assetsof fixed assets
Buildings andstructures

0
18
162

− 21 −1

Buildings andstructures
Vehicles andtransportationequipment
Tools & equipment
SoftwareLong term prepaid
expenses
Total

217
0
8
14
5
247

（Related to the consolidated statements of cash flow） (Millions of yen, rounded down)
March 1, 2005 - August 31, 2005

March 1, 2004 - August 31, 2004

(1) Relationship between period
end cash and cash equivalents
and cash recorded in the balance
sheet(1) Relationship between period
end cash and cash equivalents
and cash recorded in thebalance sheet

Cash and deposit
accounts
Securities account
Total
Fixed deposits withmaturities exceeding
3 months
Stocks and bonds
with redemption
period exceeding 3
monthsCash and cash
equivalents

4,599
―
4,599

―

―
4,599

Cash and deposit
accounts
Securities account
Total
Fixed deposits withmaturities exceeding
3 months
Stocks and bonds
with redemption
period exceeding 3
monthsCash and cash
equivalents− 22 −

6,300
237
6,538
―
(237)
6,300

March 1, 2004 - February 28, 2005

(1) Relationship between period end
cash and cash equivalents andcash recorded in the balance sheet
Cash and deposit
accounts
Securities account
Total
Fixed deposits withmaturities exceeding
3 months
Stocks and bonds
with redemption
period exceeding 3
monthsCash and cash
equivalents

4,130
―
4,130
―

―
4,130

1.

Lease transactions(Millions of yen, rounded down)

March 1, 2005 - August 31, 2005

March 1, 2004 - August 31, 2004

March 1, 2004 - February 28, 2005

Finance lease transactions otherthan those in which the title to theleased asset is deemed to transfer
to the lessee

Ⅰ Finance lease transactions otherthan those in which the title to theleased asset is deemed to transfer tothe lessee

Ⅰ Finance lease transactions otherthan those in which the title to theleased asset is deemed to transfer tothe lessee(1) Equivalents of purchase value,
accumulated depreciation and period
end balance(1) Equivalents of purchase value,
accumulated depreciation and period
end balance(1) Equivalents of purchase value,
accumulated depreciation and period
end balance

Ⅰ

Purchase Accumulated
pricedepreciation

Periodendbalance

Building &structures

2

0

1

Tools,
Fixtures &Equipment

784

532

252

Software

159

87

71

Total

946

620

326

(2) Period-end balance of unexpired leasecommitment equivalents
Within 1 year
Over 1 year
Total

Periodendbalance

Periodendbalance

Purchase Accumulated
price depreciation

Tools,
Fixtures &Equipment

1,192

722

470

Tools,
Fixtures &Equipment

1,134

761

372

Software

126

66

60

Software

123

79

43

Total

1,319

788

531

Total

1,257

840

416

(2) Period-end balance of unexpired leasecommitment equivalents

188
167
356

(3) Lease payments, depreciation expenseequivalents & interest payment
equivalents
Lease payments
Depreciation expenseequivalents
Interest payment
equivalents

Purchase Accumulated
pricedepreciation(2) Period-end balance of unexpired
lease commitment equivalents

Within 1 year
Over 1 year

305
249

Total

554

Lease payments
Depreciation expenseequivalents
Interest payment
equivalents

5

256
183

Total

440

(3) Lease payments, depreciation
expense equivalents & interest
payment equivalents(3) Lease payments, depreciation expenseequivalents & interest payment
equivalents

160
149

Within 1 year
Over 1 year

167
158

Lease payments
Depreciation expenseequivalents
Interest payment
equivalents

7

346
329
15

(4) Method of calculating depreciation (4) Method of calculating depreciation(4) Method of calculating depreciation
expense equivalents
expense equivalents
expense equivalents
Straight line method: Useful life assumed to
As at left
As at left
be lease period; residual value zero.
(5) Method of calculating interest payment (5) Method of calculating interest payment (5) Method of calculating interest payment
equivalents
equivalents
equivalents
As at left
Interest payment assumed to be the
As at leftdifference between the total lease payment
and purchase price equivalent; Allocated toeach period by the interest method

Ⅱ

Operating leases

Within 1 year
Over 1 year
Total

Ⅱ

0
―
0

− 23 −

Operating leases

Within 1 year
Over 1 year
Total

0
―
0

2. Securities
As of end of interim period (August 31, 2005)
1. Securities with a market quotation(Millions of yen, rounded down)Book valueMarket value

Difference(1) Bonds held to maturity
1. JGBs; Municipal bonds

―

―

―

2. Other bonds

100

99

0

3. Other

―

―

―

100

99

0

Total

Acquisition priceBook value

Difference(2) Other marketable securities
1. Stocks―――

2. Bonds―――

3. Other

76

159

82

76

159

82

Total
2. Securities not valued at market(Millions of yen, rounded down)Book value(1) Other marketable securities
1. Unlisted shares（excluding OTC market-traded）

0

2. Public utility bond investment trusts―

3. Other―(2) Shares of subsidiaries

113
Total

113

− 24 −

As of end of previous interim period (August 31, 2004)
1. Securities with a market quotation(Millions of yen, rounded down)Book valueMarket value

Difference(1) Bonds held to maturity
1. JGBs; Municipal bonds

―

―

―

2. Other bonds

228

228

0

3. Other

―

―

―

228

228

0

Total

Acquisition priceBook value

Difference(2) Other marketable securities
1. Stocks―――

2. Bonds―――

3. Other

107

130

23

107

130

23

Total
2. Securities not valued at market(Millions of yen, rounded down)Book value(1) Other marketable securities
1. Unlisted shares（excluding OTC market-traded）

132

2. Public utility bond investment trusts―

3. Other―(2) Shares of subsidiaries

21
Total

153

− 25 −

As of end of previous fiscal year (February 28, 2004)
1. Securities with a market quotation
Book value(Millions of yen, rounded down)Market value

Difference(1) Bonds held to maturity
1. JGBs; Municipal bonds

―

―

―

2. Other bonds

100

99

0

3. Other

―

―

―

100

99

0

Total

Acquisition priceBook value

Difference(2) Other marketable securities
1. Stocks―――

2. Bonds―――

3. Other

107

125

18

107

125

18

Total

2. Securities not valued at market(Millions of yen, rounded down)Book value(1) Other marketable securities
1. Unlisted shares（excluding OTC market-traded）

132

2. Public utility bond investment trusts―

3. Other

14(2) Shares of subsidiaries

224
Total

370

− 26 −

3. Derivatives
As of end of interim period (August 31, 2005)
Derivative transactions: Contractual amounts, market values and valuation gains and losses
1. Interest rate related(Millions of yen, rounded down)Contractual
amountType

Non-market transactions

Interest rate swaps
Receive fixed/ pay
floating

Total

AmountValuationexceeding 1 Market value
gain/loss
year

300

―

(2)

1

300

―

(2)

1

As of end of previous interim period (August 31, 2004)
There are no relevant items
As of end of previous fiscal year (February 28, 2005)
Derivative transactions: Contractual amounts, market values and valuation gains and losses
1. Interest rate related(Millions of yen, rounded down)Contractual
amountType

Non-market transactions

Interest rate swaps
Receive fixed/ pay
floating

Total

300
300

− 27 −

AmountValuationexceeding 1 Market value
gain/loss
year
―

(1)

2

(1)

2

4. Segment Information
Segment information by business typeFirst half of fiscal year ending February 28, 2006 (March 1, 2005 to August 31, 2005)
Millions of yen

Trading ofFranchiseused cars

business

Elimination/

Total

All company

Consolidated

Sales(1) Sales to external

82,567

4,215

86,783―86,783

―

―

―

―

―

Total

82,567

4,215

86,783―86,783Operating expenses

77,6893,440

81,1302,162

83,293Operating income

4,878

774

5,652

(2,162)

3,490

customers(2) Inter-segmental sales
or transfers

First half of fiscal year ending February 28, 2005 (March 1, 2005 to August 31, 2005)
Millions of yen

Trading ofFranchiseused cars

business

Elimination/

Total

All company

Consolidated

Sales(1) Sales to external

62,338

3,816

66,154―

66,154

―

―

―

―

―

Total

62,338

3,816

66,154―

66,154

Operating expenses

58,4682,139

60,607

1,639

62,247

Operating income

3,869

1,677

5,546

(1,639)3,907

customers(2) Inter-segmental sales ortransfers− 28 −

Fiscal year ending February 28, 2005 (March 1, 2004 to February 28, 2005)
Millions of yen

Trading ofFranchiseused cars

business

Elimination/

Total

Consolidated

All company

Sales(1) Sales to external

148,1318,564

156,696--

156,696

--

--

--

--

--

148,1318,564

156,696--

156,696

Operating expenses

135,438

7,167

142,605

3,860

146,466

Operating income

12,693

1,396

14,090(3,860)

10,229customers(2) Inter-segmental sales ortransfers
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: (These classifications apply to the fiscal
periods March 1, 2005 to August 31, 2005; March 1, 2004 to August 31, 2004; and March 1, 2004 to February 28, 2005.)

Business Classification

Principal Product Name or Service Name

Used Car Sales

Purchase and sales of used automobiles through directly operated outlets and the likeFranchising

Royalties arising out of franchise agreements and fees for the provision of training etc., andintermediation in buying and selling of used automobiles

3. Amount and principal content included in the “Elimination or Total Company” item
Millions of yen
March 1, 2005 to

March 1, 2004 to

March 1, 2004 to

August 31, 2005

August 31, 2004

February 28, 2005

Amount of unallocated operating expenses included in
2,162

1,639

3860

elimination or total company item
Principal content

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

Segment information by geographical location
For the first quarter of the current consolidated fiscal year and for the previous fiscal year consolidated
subsidiaries were located overseas but as over 90% of sales for each segment were in Japan segment
information by geographical location has been omitted.

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

− 30 −

Information on a per-share basis
March 1, 2005 - August 31, 2005
Net assets per share:

March 1, 2004 - August 31, 2004

March 1, 2004 - February 28, 2005

¥1,539.49

Net assets per share:¥1,636.74

Net assets per share:¥1603.84¥163.07

Interim net income per¥216.18

Net income per share:¥548.86

Interim net income per share:
Fully diluted interim net income
per share:

Fully diluted net

share:¥161.08

Fully diluted interim¥210.04

income per share:¥537.88

net income per share:
Note: Net income per share and fully diluted net income per share are calculated based on net income for the period.

March 1, 2005 August 31, 2005

March 1, 2004 August 31, 2004

March 1, 2004 February 28,
2005

1,633

2,192

5,652

1,633

2,192

5,558

--

--

94

--

--

94

10,017

101,42

10,127------

Subscription rights

2

93

61

Warrants

121

202

144

124

296

206

Item
Net income per share:
Net income (¥ million)
Net income attributable to ordinary shareholders(¥ million)
Amount not attributable to ordinary shareholders(¥ million)(Of which bonuses paid to executive officers aspart of the appropriation of surplus)
Average number of ordinary shares outstanding
during the period (1,000 shares)
Net income per share (diluted):
Net income adjustment (¥ million)
Main components of the increase in ordinary
shares used when calculating the fully diluted net
income per share

Increase in the number of ordinary shares (1,000
shares)--Warrants Class 1

Residual securities not included in the

Warrants Class 1

calculation of the net income after adjustment for

Dilution from these

Dilution from theseresidual securities due to the fact that thesewarrants would be 22,000

warrants would besecurities had no dilutive effect.

shares

43,000 shares− 31 −

5. Purchases and Sales(1) Purchases(Millions of yen. Rounded down)
March 1, 2005 –March 1, 2004 –March 1, 2004 –August 31, 2005

August 31, 2004

February 28, 2005

Business Classification
AmountY on Ychange（％）

AmountY on Ychange（％）

AmountY on Ychange（％）

Used Car Sales

64,83527.0

51,03821.8

118,481

29.6

Franchising

1,523

67.9

907

10.9

1,822

(14.5)

Total

66,35927.7

51,945

21.6

120,303

28.6

Note: Consumption tax is not included in the above figures.

(2) Sales(Millions of yen. Rounded down)
March 1, 2005 –March 1, 2004 –March 1, 2004 –August 31, 2005

August 31, 2004

February 28, 2005

Business Classification
AmountY on Ychange（％）

AmountY on Ychange（％）

AmountY on Ychange（％）

Used Car Sales

82,56732.4

62,33820.1

148,131

28.9

Franchising

4,215

10.4

3,816

7.5

8,564

22.3

Total

86,78331.1

66,154

19.3

156,69628.5

Note: Consumption tax is not included in the above figures.

− 32 −