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, 2014
(Based on Japanese GAAP)

July 11, 2014

Company name:
Gulliver International Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

7599
Chairman

URL

http://221616.com

Kenichi Hatori

Inquiries:
Accounting and Finance Section Manager
Scheduled date to file Quarterly Securities Report:

Masayuki Matsumoto
July 15, 2014

Holding of quarterly financial results meeting:No

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

TEL

03-5208-5503–Yes(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended May 31, 2014 (from March 1, 2014 to May 31, 2014)(1) Consolidated financial results (cumulative)

Three months ended May 31, 2014
Three months ended May 31, 2013

Net sales

Millions of yen
38,84545,729Yen8.99
12.11

Three months ended May 31, 2014
Three months ended May 31, 2013
Total assets

1st quarter-endYen––

Year ending February 28, 2015 (Forecast)

Yen
8.98
12.11

Equity ratio

Millions of yen
32,971
32,846

2. Cash dividends

Year ended February 28, 2014
Year ending February 28, 2015

Net income

Diluted net income per share

Net assets

Millions of yen
49,616
52,779As of May 31, 2014
As of February 28, 2014

Ordinary income% Millions of yen% Millions of yen% Millions of yen%(15.1)
1,476 (22.2)
1,507 (21.2)
910 (25.8)
18.0
1,896 171.9
1,913 156.1
1,227 252.7

Net income per share(2) Consolidated financial position

Percentages indicate year-on-year changes

Operating incomeNet assets per share%
66.4
62.2

Yen
325.22323.99Annual dividends per share

2nd quarter-end

Yen
5.00

3rd quarter-end

Yen
–

7.50

Fiscal year-end

Yen
8.00

–

7.50

Total

Yen
13.00
15.00

3. Forecast of consolidated financial results for the year ending February 28, 2015 (from March 1, 2014 to February 28, 2015)
Net sales
Six months ending
August 31, 2014
Full year

Millions of yen80,200

173,000

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

(3.8)
2.1

3,200
8,500(10.0)
19.8

1

3,200
8,500(12.5)
18.0

1,900

5,100(17.3)
17.0

18.74

50.31

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2014(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:
Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo

Yes
No

(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, 2014

106,888,000 shares As of February 28, 2014

106,888,000 shares

As of May 31, 2014

5,520,090 shares As of February 28, 2014

5,520,070 shares

Number of treasury shares at the end of the period

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2014

101,367,917 shares Three months ended May 31, 20132

101,368,230 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, 2014), purchases and sales volume at nationwide directly managed stores
declined year on year due to the temporary impact of conservative consumer spending caused by the consumption tax rate hike. However, withthe conservative mood among consumers towards purchasing used vehicles resulting from this negative sentiment hitting its lowest point, andwith contributions from newly opened display sales stores including OUTLET, LIBERALA, SNAP HOUSE, and MINICLE, the percentage ofretail sales volume actually grew.
The number of directly managed stores grew to 312 stores following a year-on-year net increase of 8 stores.
Selling, general and administrative (SG&A) expenses saw an increase in expenses related to store operations, accompanying an increased
number of Gulliver-directly operated stores.
Due to the above, consolidated business results for the first quarter were as follows: consolidated net sales were 38,845 million yen (down 15.1%
from the same term last year), operating income was 1,476 million yen (down 22.2% from the same term last year), ordinary income was 1,507
million yen (down 21.2% from the same term last year) and net income was 910 million yen (down 25.8% from the same term last year).
(2) Qualitative information on consolidated financial position
AssetsTotal assets at May 31, 2014 were 49,616 million yen, a decrease of 6.0% from February 28, 2014.
Current assets were 29,214 million yen, down 12.7% from the same date. The primary contributing factor was a 911 million yen increase in cash
and deposits, a 2,267 million yen decrease in merchandise and a 2,649 million yen decrease in notes and accounts receivable-trade.
Total noncurrent assets at May 31, 2014 increased by 5.6% from February 28, 2014, to 20,402 million yen. This mainly reflected a 600 million
yen increase in buildings and structures and a 409 million yen increase in construction in progress.
Of the total amount of accounts receivable-trade, the accounts receivable (financial credit) of consolidated subsidiary G-One Financial ServicesCo., Ltd. stood at 2,845 million yen.
Liabilities
Total liabilities at May 31, 2014 decreased by 16.5% from February 28, 2014 to 16,644 million yen.
Current liabilities at May 31, 2014 decreased by 24.8% from February 28, 2014 to 10,167 million yen. The primary contributing factor was a
1,695 million yen decrease in income taxes payable, and a 99 million yen increase in deposits received.
Total noncurrent liabilities at May 31, 2014 increased by 1.1% from February 28, 2014 to 6,477 million yen.
Net assets
Net assets at May 31, 2014 increased by 0.4% from February 28, 2014 to 32,971 million yen, mainly due to a 126 million yen increase inretained earnings accompanying the posting of net income.
(3) Outlook for the fiscal year ending February 28, 2015
There have been no changes to the full-year consolidated results forecasts for the fiscal year ending February 28, 2015, which were announcedwith Financial Results Fiscal 2014 (March 1, 2013 to February 28, 2014) (Japanese GAAP; Consolidated) issued on April 11, 2014.
2.

Summary Information (Notes)

Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error
corrections

In order to account for losses on repairs to vehicles with warrantees, the warranty estimate value for the warranty term was recorded based on
past results. However, having accumulating a sufficient amount of actual data related to repairs, we changed the method of calculating estimates
due to our ability to generate more precise estimates.
As a result, compared to the previous method, costs of sales for first quarter of the fiscal year under review decreased by 622 million yen andoperating income, ordinary income, and income before income taxes and minority interests all increased by the equivalent amount.

33. Quarterly consolidated financial statementsConsolidated balance sheets

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
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

As of February 28, 2014

(Millions of yen)
As of May 31, 2014

14,688
7,163
9,414
1,210
1,046
(59)
33,463

15,599
4,514
7,147
963
1,048
(58)
29,214

15,586(5,605)
9,981
215
(185)
30
2,740
(2,165)575
218
184
10,98916,295(5,714)
10,581
198
(191)
6
2,749
(2,144)604
218
593
12,004

993
17
1,011

1,048
175
1,223

3
435
251
3,319
2,812
253
302
(62)
7,315
19,316
52,779

3
36
251
3,389
2,987
242
326
(62)
7,173
20,402
49,616

4

Liabilities
Current liabilities
Accounts payable – trade
Short–term loans payable
Accounts payable – other
Income taxes payable
Deposits received
Provision for bonuses
Provision for merchandise warranties
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
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets

As of February 28, 2014

(Millions of yen)
As of May 31, 2014

2,852
–1,721
2,116
98
440
1,817
4,478
13,525

1,920
88
1,794
420
197
48
1,272
4,424
10,167

4,000
741
474
1,191
6,407
19,933

4,060
743
482
1,191
6,477
16,644

4,157
4,032
28,548(3,975)32,761

4,157
4,032
28,674(3,975)32,8888080
432,846
52,77979
79
432,971
49,616

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, 2013
May 31, 2014
Net sales
45,72938,845
Cost of sales
36,67629,453Gross profit
9,053
9,391
Selling, general and administrative expenses
7,157
7,915
Operating income
1,896
1,476
Non–operating income
Interest income
283Foreign exchange gains
40
Compensation income–8Other
1129
Total non–operating income
4541
Non–operating expenses
Interest expenses
2210
Other
60
Total non–operating expenses
28
10
Ordinary income
1,913
1,507
Extraordinary income
Reversal of provision for loss on business of49–
subsidiaries and associates
Other–0Total extraordinary income
490
Extraordinary losses
Loss on retirement of non–current assets
2620
Total extraordinary losses
2620
Income before income taxes and minority interests
1,935
1,487
Income taxes – current
929
317
Income taxes – deferred(222)258
Total income taxes
707
576
Income before minority interests
1,227910
Net income
1,227
910

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

7

Three months ended
May 31, 2013
1,227

(Millions of yen)Three months ended
May 31, 2014910

7
7
1,235(0)(0)
910

1,235910