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 28, 2013
(Based on Japanese GAAP)

Company name

Gulliver International Co., Ltd.

Stock exchange listing Tokyo
Stock Code
7599
Representative
Inquiries

April 12, 2013

URL

http://221616.com

ChairmanAccounting and Finance Section Manager

Kenichi Hatori
Masayuki Matsumoto

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

May 30, 2013
May 31, 2013

Holding of earnings performance review

yes

Scheduled date to commence dividend payments
Preparation of supplementary material on earnings

TEL

03-5208-5503

May 31, 2013
yes(for analysts and institutional investors)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended February 28, 2013 (from March 1, 2012 to February 28, 2013)(1) Consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended February 28, 2013
Year ended February 29, 2012

Operating income

Millions of yen
143,417
132,881% Millions of yen
7.9
5,077
(6.4)
6,249

Diluted net income
per share
Yen
Yen
294.06294.06373.45373.42

Net income per share
Year ended February 28, 2013
Year ended February 29, 2012
(2) Consolidated financial position

Total assets(3) Consolidated cash flows

As of February 28, 2013
As of February 29, 2012

Cash flows fromoperating activities
Millions of yen
3,064
10,665

Net income

Ordinary
income/total assets
%
%
10.5
9.7
14.5
11.0

Operatingincome/net sales
%
3.5
4.7

Equity ratio

Millions of yen
29,451
27,292

Cash flows frominvesting activities
Millions of yen(1,348)(1,580)2. Cash dividends

Annual dividends

Year ending February 28, 2014 (Forecast)

Yen

-

-

Yen

Yen

5.00

-

74.00
41.00

-

1

Yen

41.00
47.00

5.00

Total
Yen

115.00
88.00
10.00

%
(21.3)(26.4)Net assets per share

%
55.3
49.9

Yen
2,905.04
2,692.16

Cash flows fromfinancing activities
Millions of yen(2,830)(9,919)

1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended February 29, 2012
Year ended February 28, 2013

% Millions of yen(16.9)
2,980(19.2)
3,785

Net income/equity

Net assets

Millions of yen
53,25354,643As of February 28, 2013
As of February 29, 2012

Ordinary income% Millions of yen(18.8)
5,252(21.9)
6,318

Period-end cash andcash equivalents
Millions of yen
6,836
7,945

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

Millions of yen

1,165
892

%

30.8
29.9
30.7

%

4.5
3.1

3. Forecast of consolidated financial results for the year ending February 28, 2014 (from March 1, 2013 to February 28, 2014)
Net sales
Six months ending
August 31, 2013
Full year

Millions of yen
72,700145,000

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

2.0

3,000

1.1

5,800

88.8
14.2

3,000
5,800

74.6
10.4

4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2013(changes in specified subsidiaries resulting in the change in scope of consolidation):

1,700
3,300

95.7
10.7

16.77
32.56

no

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

Restatement of prior period financial statements after error corrections:(3) Number of issued shares
Total number of issued shares at the end of the period (including treasury stock)

no
yes

no

As of February 28, 2013

10,688,800 shares As of February 29, 2012

10,688,800 shares

As of February 28, 2013

551,977 shares As of February 29, 2012

551,965 shares

10,136,831 shares Year ended February 29, 2012

10,136,840 shares

Number of shares of treasury stock at the end of the period

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Year ended February 28, 20132

1. Operating results(1) Analysis of consolidated operating results
In the fiscal year under review, total retail sales volume of cars over the whole financial year at Gulliver’s directly operated stores exceeded
45,000, a record since the founding of Gulliver. Contributory factors included development of personnel at existing Gulliver stores that have beenstrengthened in recent years, and the opening of large-scale showrooms and other new stores.
However, the profitability when Gulliver sold used cars wholesale to used-car sellers through used car auctions, declined in the first half of the
fiscal year under review due to the eco-car subsidies that the Japanese government provided through September 2012 to help consumers buy new
cars.
Selling, general and administrative (SG&A) expenses rose mainly due to increased advertising expenditures made in advance with a view toexpanding the retail business in the future, and to increased personnel expenses arising from hiring mainly new university graduates.
Consolidated subsidiary G-One Financial Services Co., Ltd. saw operating income decline 337 million yen year on year to 1 million yen, as
operations have been scaled down. Accounts receivable (financial credit) of G-One Financial Services Co., Ltd. stood at 6,684 million yen as ofthe end of the fiscal year under review, down 2,971 million yen from the end of the previous fiscal year.
Due to the above, consolidated business results for the fiscal year under review were as follows: consolidated net sales were 143,417 million
yen (up 7.9% from last year), operating income was 5,077 million yen (down 18.8% from last year), ordinary income was 5,252 million yen(down 16.9% from last year) and net income was 2,980 million yen (down 21.3% from last year).
Outlook for the fiscal year ending February 28, 2014
Gulliver will continue to focus on the retail sales of used cars. As a result of our continuous and thorough staff training, full-year contributions
from the large-scale showrooms that were opened throughout the fiscal year under review, and the opening of OUTLET and other new stores, we
expect the total retail sales volume of cars retailed via OUTLET to increase in the fiscal year ending February 28, 2014.
We expect variations in the performance of our consolidated subsidiaries to be negligible.
With the above in mind, as the outlook for the full fiscal year, we expect consolidated net sales of 145,000 million yen (up 1.1% from the fiscal
year under review), operating income of 5,800 million yen (up 14.2% from the fiscal year under review), ordinary income of 5,800 million yen(up 10.4% from the fiscal year under review) and net income of 3,300 million yen (up 10.7% from the fiscal year under review).
(2) Analysis of financial position[Assets, liabilities and net assets]
1) Current assets
The balance of current assets at the end of the year under review decreased by 1,370 million yen compared to the end of the previous fiscal
year to 29,555 million yen.
The primary contributing factors were a decline in cash and deposits (down 1,609 million yen year on year) and a fall in accounts receivable(down 1,068 million yen year on year), offset by an increase in products (up 1,739 million yen year on year).
2) Fixed assets
The balance of fixed assets at the end of the fiscal year under review decreased by 19 million yen compared to the end of the previous fiscal
year to 23,698 million yen.
Major factors were an increase in tangible fixed assets (up 1,206 million yen year on year) and a decline in long-term loans receivable (down
1,435 million yen year on year).
3) Current liabilities
The balance of current liabilities at the end of the year under review increased by 1,296 million yen compared to the end of the previous fiscal
year to 17,357 million yen.
The primary contributing factor was an increase in short-term loans payable (up 3,000 million yen year on year).
4) Noncurrent liabilities
The balance of noncurrent liabilities at the end of the year under review decreased by 4,845 million yen compared to the end of the previous
fiscal year to 6,445 million yen.
The major factor was a decrease in long-term loans payable (down 5,000 million yen year on year).
5) Net assets
The balance of net assets at the end of the year under review increased by 2,159 million yen compared to the end of the previous fiscal year to
29,451 million yen.
3

The major factor was an increase in retained earnings (up 2,149 million yen year on year).
[Cash flow position]
For the current consolidated account period, the cash flow from operating activities was positive, but negative from investment and financing
activities. Overall cash flow was a negative 1,109 million yen.
The balance of cash and cash equivalents at the end of the current consolidated account period was 6,836 million yen.
(Cash flow from operating activities)
Cash and cash equivalents generated from operating activities (hereinafter referred to as “cash”) was 3,064 million yen.
This primarily included net income before adjustment for taxes of 5,172 million yen, a 1,722 million yen decrease in accounts receivable and a
1,753 million yen increase in inventory assets.
(Cash flow from investment activities)
The cash used for investing activities was 1,348 million yen. This was mainly to cover the expenses for the purchase of tangible fixed assets.
(Cash flow from financing activities)
Net cash used in financing activities was 2,830 million yen, largely the result of outflows for the repayment of loans.
Trends in shareholders’ equity and cash flow indicators are as follows:
FY 2009
Equity ratio (%)

FY 2010

FY 2011

FY 2012FY 2013

26.9

24.1

41.6

49.9

55.3

(market price base) ratio
(%)

19.8

44.2

61.4

58.7

73.3

Debt redemption years

--

--

1.4

1.0

2.9

Interest coverage ratio

--

--

80.8

66.7

31.2

Shareholders’ equity

Notes:
1. Breakdown of each indicator
Equity ratio = shareholders’ equity/total assets
Shareholders’ equity (market price base) 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 formula: closing share price at period end x number of shares issued (excluding treasury stock).
(3) Basic policy concerning distribution of profit and dividend for current and next term
We have identified the return of profit to investors as a key management issue and also emphasize our dividend payout ratio. We are focusedon ensuring the performance-based return of profit. In specific terms, we are targeting a dividend payout ratio of about 30% of consolidated
current net income.
Given the above basic policy and target, our expected dividends may be amended if the consolidated net income is not as expected.
We would like to set the cash dividend per share of the current term, based on the above, as 88 yen on a yearly basis (41 yen at the end of thesecond quarter, 47 yen at the end of the year).
In accordance with the above policies and targets, assuming consolidated net income of 3,300 million yen, we plan a cash dividend per sharefor the next term of 10 yen on a yearly basis ( 5 yen at the end of the second quarter, 5 yen at the end of the year).
Gulliver plans to conduct a 10-for-1 stock split of common stock with an effective date of May 1, 2013. As a result, our dividend per share
forecast for the fiscal year ending February 28, 2014 is calculated based on the number of shares after the stock split.

4Consolidated financial statements
Consolidated balance sheets(Millions of yen)

As of February 29, 2012

AssetsCurrent assets

As of February 28, 2013

Cash and deposits
Notes and accounts receivable-trade

8,472
10,683

Other
Allowance for doubtful accounts

1,873
(65)

Merchandise
Deferred tax assets

Total current assets

Noncurrent assets
Property, plant and equipment

Buildings and structures
Accumulated depreciation

Buildings and structures, net

8,640
1,320

10,380965

30,92529,555

11,901(4,347)

13,757(4,937)

7,553

Vehicles370

Accumulated depreciation
Vehicles, net

Accumulated depreciation

Tools, furniture and fixtures, net

Construction in progress
Intangible assets
Goodwill
Software
Other

Total intangible assets

2,379

Stocks of subsidiaries and affiliates
Long-term loans receivable

Lease and guarantee deposits
Construction assistance fund receivables(1,925)

218

218

Allowance for doubtful accounts
Total noncurrent assets

5

-

939
15

926
16

14

14

5

942

768
7,993

361
6,558

235
257

249
250

3,065
2,758

(111)

14,353

13,14654,64353,25323,718

Total assets

40

9,609

(652)

Total investments and other assets

454

8,403

2,894
2,840

Deferred tax assets
Other

76

(1,830)961

Investments and other assets
Investment securities

232

2,279

22

Total property, plant and equipment

8,820

(156)

448

Land

1,792
(61)

(210)
160

Tools, furniture and fixtures

6,863
9,614

23,698(Millions of yen)

As of February 29, 2012

Liabilities
Current liabilities

As of February 28, 2013

Accounts payable-trade
Short-term loans payable

2,912
2,000

3,439
5,000

Deposits received
Provision for bonuses

232
489

264
464

Accounts payable-other
Income taxes payable

2,130
2,532

Provision for merchandise warranties
Other

1,810
3,951

Total current liabilities

1,829
579

1,508
4,270

16,06017,357

9,000

4,000

Asset retirement obligations
Provision for loss on business of subsidiaries and affiliates

1,016
-

1,129
50

Total noncurrent liabilities

11,2906,445

Noncurrent liabilities
Long-term loans payable

Long-term guarantee deposited
Provision for directors' retirement benefits

807
461

Other

5

Total liabilities

Net assets
Shareholders' equity
Capital stock
Capital surplus

Retained earnings
Treasury stock

Total shareholders' equity

Foreign currency translation adjustment

Total accumulated other comprehensive income

23,802

4,157
4,032

4,157
4,032

23,021(3,975)25,171(3,975)

54

62

54

Subscription rights to shares

2

Total net assets

27,292

Total liabilities and net assets

54,643

6-

27,351

27,235

Accumulated other comprehensive income

772
493

29,38562
329,451
53,253

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income
Fiscal year ended

February 29, 2012

Net sales

132,881

Cost of sales

99,892Gross profit

32,989Selling, general and administrative expenses

26,739Operating income

6,249

Non-operating income

Interest income
Foreign exchange gains

133-

Equity in earnings of affiliates
Proceeds from insurance

37
26

Other

(Millions of yen)

Fiscal year ended

51

February 28, 2013

143,417
109,527

33,88928,812

5,077
123
12
10
66
72

Total non-operating income

249

285

Interest expenses
Foreign exchange losses

159
4

98
-

Total non-operating expenses

180

110

Non-operating expenses

Other

16

Ordinary income

6,318

Extraordinary income
Reversal of allowance for doubtful accounts

56

12

5,252
-

Compensation income
Reversal of provision for loss on business liquidation

779

6
-

Total extraordinary income

950

6

Loss on retirement of noncurrent assets
Loss on liquidation of subsidiaries and affiliates

134
16

67
-

Loss on adjustment for changes of accounting standard for asset
retirement obligations

360

-

59

5

Other

114

Extraordinary loss

Provision for loss on business of subsidiaries and affiliates
Loss on disaster

101

Other

Total extraordinary losses

672

0

13
-

86

Income before income taxes and minority interests

6,596

5,172

Total income taxes

2,810

2,191

Income taxes-current
Income taxes-deferred

2,775
34

Income before minority interests

3,785

Net income

3,785

7

1,855
336
2,980
2,980

Consolidated statements of comprehensive income (cumulative)
Fiscal year ended
February 29, 2012

Income before minority interests
Other comprehensive income

Foreign currency translation adjustment
Total other comprehensive income(Millions of yen)

3,785

Comprehensive income attributable toComprehensive income attributable to owners of the parent

8

2,980

(0)

8

3,785

2,989

3,785

2,989

(0)

Comprehensive income

Fiscal year ended
February 28, 20138

Consolidated statements of changes in net assets(Millions of yen)

Fiscal year ended
February 29, 2012

Shareholders' equity
Capital stock

Balance at the beginning of current period

Fiscal year ended
February 28, 2013

4,157

4,157

Balance at the beginning of current period

4,032

4,032

Retained earnings
Balance at the beginning of current period

20,08323,021(1,378)(831)

Balance at the end of current period

4,157

Capital surplus

Balance at the end of current period

4,032

Changes of items during the period
Dividends from surplus

Change of scope of consolidation
Net income

4,157

4,032

531
3,785

2,980

Balance at the end of current period

23,021

25,171

Balance at the beginning of current period
Changes of items during the period(3,975)(3,975)

Total changes of items during the period

(0)
(0)

(0)

(3,975)(3,975)24,297

27,235(1,378)(831)

Total changes of items during the period

2,938

Treasury stock

Purchase of treasury stock

Balance at the end of current period

Total shareholders' equity
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock

3,785
(0)

Change of scope of consolidation

531

Total changes of items during the period

2,938

2,149

(0)

2,980
(0)
-

2,149

Balance at the end of current period

27,23529,385

Balance at the beginning of current period
Changes of items during the period

586

54

(531)

-

(0)

8

Accumulated other comprehensive income
Foreign currency translation adjustment

Change of scope of consolidation-foreign currencytranslation adjustment

Net changes of items other than shareholders' equity

Total changes of items during the period(532)

Total accumulated other comprehensive income
Balance at the beginning of current period

54

62

586

54

(531)

-

(0)

8

54

62

Balance at the end of current period

Changes of items during the period
Change of scope of consolidation-foreign currencytranslation adjustment
Net changes of items other than shareholders' equity
Total changes of items during the period(532)

Balance at the end of current period

9

8

8

(Millions of yen)

Fiscal year ended

Fiscal year ended

February 29, 2012

Subscription rights to shares

Balance at the beginning of current period
Changes of items during the period

Net changes of items other than shareholders' equity
Total changes of items during the period

February 28, 2013
7

2

(5)

1

2

3

(5)

Balance at the end of current period

Total net assets
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock

Change of scope of consolidation
Change of scope of consolidation-foreign currency translation

24,891

27,292(1,378)

(831)

3,785
(0)

2,980
(0)

(531)

-

531

adjustment
Net changes of items other than shareholders' equity(6)

Total changes of items during the period

2,400

Balance at the end of current period

27,292

10

1

-

9

2,159

29,451

Consolidated statements of cash flows(Millions of yen)

Fiscal year ended
February 29, 2012

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill

Fiscal year ended
February 28, 2013
6,596

5,172

(4)
(80)

(25)
(546)

1,192
21

Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts

Additional reserve for merchandize warranty
Increase (decrease) in provision for directors' retirement benefits474
18Interest and dividends income
Interest expenses

Foreign exchange losses (gains)
Reversal of loss on business liquidation

Loss on retirement of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Decrease (increase) in operating loans receivable
Increase (decrease) in accrued consumption taxes

(124)
98

360

-

134
6,544

67
1,722

(12)
-

(1,689)(872)(1,753)
523

(811)

288

1,234
(439)

Other, net

(301)
31

(133)
159
4
(779)

Loss on adjustment for changes of accounting standard for asset
retirement obligations

1,185
5

(8)

Subtotal

11,927

6,324Interest expenses paid
Income taxes paid

Net cash provided by (used in) operating activities(159)(1,237)

10,665(98)(3,720)Purchase of property, plant and equipment
Purchase of intangible assets(1,111)(403)(2,060)
(413)

3,100
(428)

(166)

233
(269)

91
(178)

1,400
41

500
(10)

Interest and dividends income received

135

Net cash provided by (used in) investing activities

Payments for asset retirement obligations
Purchase of short-term investment securities(3,100)

Collection of loans receivable
Payments for lease and guarantee deposits

858
(222)

Proceeds from redemption of securities
Payments of loans receivable

Proceeds from collection of lease and guarantee deposits
Payments of construction assistance fund receivables
Collection of construction assistance fund receivables
Payments into time deposits

221(1,900)Net cash provided by (used in) investing activities(1,580)

Proceeds from withdrawal of time deposits
Other, net

11

558

3,064

(22)
-

906
(233)

238
-

(1,348)(Millions of yen)

Fiscal year ended

Fiscal year ended

February 29, 2012

Net cash provided by (used in) financing activities

February 28, 2013

Repayment of long-term loans payable
Purchase of treasury stock(8,516)(0)(2,000)(0)

Net cash provided by (used in) financing activities(9,919)(2,830)Net increase (decrease) in cash and cash equivalents(836)(1,109)

(89)

-

1

-

7,945

6,836

Dividend payments(1,403)

Effect of exchange rate change on cash and cash equivalents(1)

Cash and cash equivalents at beginning of period

8,869

Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation

Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of period

(830)
5

7,945

Change in accounting estimates
To provide for losses on repairs of cars with warranties, Gulliver accounted for estimated warranty amounts for the warranty period based on
historical results. However, we have now changed how we account for estimates because we are now able to make estimates with moresophistication based on considerable past data on repair results.
In comparison to the former method, cost of sales for the fiscal year under review decreased 1,046 million yen, while operating income,ordinary income and net income before taxes increased by the same amount as a result of this change.

12(Material subsequent events)
Fiscal year under review (March 1, 2012 to February 28, 2013)(Implementation of stock split, change in number of shares in a share unit, and partial amendment to the Articles of Incorporation)
A meeting of the Board of Directors held on April 12, 2013 passed a resolution to conduct the following stock split, change the number ofshares in a share unit, and partially amend the Articles of Incorporation.
1. Purpose of conducting the stock split, changing the number of shares in a share unit, and partially amending the Articles of Incorporation
Gulliver will conduct a 10-for-1 stock split of its common shares and change the number of shares in a share unit from 10 to 100, in order tohave a share trading unit for common shares of 100 in view of the purport of the Action Plan for the Consolidation of Trading Units announced
by Japanese stock exchanges nationwide.
There is essentially no change in the investment unit as a result of this stock split and the change in the number of shares in a share unit.
2. Overview of stock split
The 10-for-1 stock split will be implemented with a record date of April 30, 2013 for common stock owned by shareholders recorded orregistered in the final shareholder register on the same date.
3. Increase in number of shares due to the stock split
The final total number of shares issued as of April 30, 2013 will be multiplied by nine. The following data have been calculated based on the
total number of shares issued as of April 12, 2013.
1) Total number of shares issued prior to the stock split: 10,688,800 shares
2) Increase in number of shares due to the stock split: 96,199,200 shares3) Total number of shares issued after the stock split: 106,888,000 shares
4) Total number of shares authorized for issue after the stock split: 400,000,000 shares
4. Effective date
May 1, 2013
5. Per-share data and impact
Per-share data for the fiscal year under review and the previous fiscal year are as follows, assuming that the stock split occurred at the
beginning of the previous fiscal year.
Item
Net assets per share

Previous fiscal year
(March 1, 2011 to February 29, 2012)

269.22 yen

Net income per share

37.35 yen

Net income per share (fully diluted)

37.34 yen

13

Fiscal year under review(March 1, 2012 to February 28, 2013)290.50 yen
29.41 yen
29.41 yen

Financial statements
Balance sheets(Millions of yen)

As of February 29, 2012

AssetsCurrent assets

As of February 28, 2013

Cash and deposits
Accounts receivable-trade

8,212
997

Prepaid expenses
Deferred tax assets

585
1,312

Merchandise
Supplies

Short-term loans receivable
Other

Allowance for doubtful accounts

6,493
2,863

8,615
70

10,341
88

561
557

777
450

(141)

538
986

(162)

Total current assets

20,77022,376

Property, plant and equipment
Buildings

9,780

11,350

6,586

7,705

Noncurrent assets

Accumulated depreciation(3,193)Structures
Accumulated depreciation

2,118(1,153)2,400(1,291)

VehiclesAccumulated depreciation

368
(209)

228
(154)

Tools, furniture and fixtures
Accumulated depreciation

2,274(1,829)2,375(1,924)

218

218

Buildings, net

Structures, net

965

Vehicles, net

158

Tools, furniture and fixtures, net

444

Land

Construction in progress

21

Total property, plant and equipment

Intangible assets

Goodwill
Right of trademark
Software
Other

74

450

37

9,597

5
0

1

959

14

1,109

8,395

938
14

Total intangible assets(3,644)

925
14
940

(Millions of yen)

As of February 29, 2012

Investments and other assets
Investment securities

As of February 28, 201314

Stocks of subsidiaries and affiliates
Long-term loans receivable

Long-term loans receivable from subsidiaries andaffiliates

Claims provable in bankruptcy, claims provable inrehabilitation and other

Long-term prepaid expenses
Lease and guarantee deposits

Construction assistance fund receivables
Deferred tax assets

2,028
6,411

6,303

3,329

67

61

67
2,888

75
3,058

106
(106)

111
(94)

2,840
223

Other
Allowance for doubtful accounts

Total investments and other assets

Total noncurrent assets

Total assets

2,758
246

21,645

17,99951,77050,91431,000Liabilities
Current liabilities

14

2,023
7,217

28,537

Accounts payable-trade
Short-term loans payable

2,892
2,000

3,405
5,000

Accrued consumption taxes
Accrued expenses

96
789

87
812

Accounts payable-other
Income taxes payable

1,043
2,460

Advances received
Deposits received

Provision for bonuses
Provision for merchandise warranties

1,902
232

2,549
263

60
470

76
398

489
1,810

Accounts payable-facilities
Unearned revenue
Other

1,194
527

27

464
1,508

19

Total current liabilities

14,27816,307Long-term loans payable
Long-term guarantee deposited

9,000
807

4,000
772

Total noncurrent liabilities

11,285

6,395

Noncurrent liabilities

Provision for directors' retirement benefits
Asset retirement obligations

461
1,016

Total liabilities

25,563

15

493
1,129
22,702

(Millions of yen)

As of February 29, 2012

Net assets
Shareholders' equity
Capital stock
Capital surplus

Legal capital surplus

Total capital surpluses

As of February 28, 2013

4,157

4,157

4,032

4,032

39

39

21,951

23,954

4,032

Retained earnings

Legal retained earnings
Other retained earnings

Retained earnings brought forward

Total retained earnings

21,990Treasury stock(3,975)

Total shareholders' equity

Subscription rights to shares
Total liabilities and net assets(3,975)28,20826,20628,211

51,77016

23,994

26,2042

Total net assets

4,032

3

50,914

Statements of income(Millions of yen)

Fiscal year ended
February 29, 2012

Net sales
Net sales of goods

Other operating revenue

Fiscal year ended
February 28, 2013

123,954

136,097

130,138

142,060

6,933

8,615

6,183

Total net sales
Cost of sales

Cost of goods soldBeginning goods

Cost of purchased goods

5,962

99,743

109,823

8,615
179

10,341
62

Total

106,677

Cost of goods sold97,883108,034

Total cost of sales

98,543

108,770

Selling, general and administrative expenses
Advertising expenses

3,685

5,113

Ending goods
Transfer to other account
Other operating revenues cost of goods sold

660

Gross profit

31,595

Directors' compensations
Salaries and allowances
Bonuses
Provision for bonuses

Traveling and transportation expenses
Communication expenses

1,299
1,124

1,333
1,212

425
1,200

Rent expenses
Rents

160
4,428

Provision for directors' retirement benefits
Provision of allowance for doubtful accounts

33
28

Other

2,738

Total selling, general and administrative expenses
Operating income

Insurance income
Other

Non-operating expenses
Interest expenses
Other

31
13

2,877

247

273

159

98

5,622

17

167
4,695

151

170

Ordinary income

432
1,187

183

10

Total non-operating expenses

1,059
606

28,49126
37

Total non-operating income

1,391
442

26,0505,544

Non-operating income
Interest income

33,290

165
7,758

897
559

Supplies expenses
Depreciation

736

182
7,435
1,361
489

Legal welfare expenses
Contracting fees

118,438

4,798

66
55

7

106

4,966

(Millions of yen)

Fiscal year ended

Fiscal year ended

February 29, 2012

Extraordinary income

February 28, 2013

Reversal of allowance for doubtful accounts
Gain on extinguishment of tie-in shares

60
316

Other

73

Compensation income
Loss on liquidation of businessTotal extraordinary income
Extraordinary loss

Loss on retirement of noncurrent assets
Loss on adjustment for changes of accounting standard for asset
retirement obligations
Loss on disaster

779

6
-

1,229

6
67

360

-

73

Total extraordinary losses

0

114

101

Other

-

649

-

1

68

Income before income taxes

6,202

4,904

Total income taxes

2,528

2,069

Income taxes-current
Income taxes-deferred

2,652
(124)

Net income

3,674

18

1,766
303
2,834

Statements of changes in net assets(Millions of yen)

Fiscal year ended
February 29, 2012

Shareholders' equity
Capital stock

Balance at the beginning of current period

Fiscal year ended
February 28, 2013

4,157

4,157

4,032

4,032

4,032

4,032

39

39

19,655

21,951Dividends from surplus
Net income(1,378)
3,674

(831)
2,834

Balance at the end of current period

21,951

23,954

Balance at the beginning of current period
Changes of items during the period

19,69521,990

Dividends from surplus
Net income(1,378)
3,674

(831)
2,834

Balance at the end of current period

21,99023,994

Balance at the beginning of current period
Changes of items during the period(3,975)(3,975)(0)(0)(3,975)(3,975)23,90926,204

Balance at the end of current period

4,157

Capital surplus

Legal capital surplus
Balance at the beginning of current period
Balance at the end of current period

4,032

Total capital surplus

Balance at the beginning of current period
Balance at the end of current period

4,032

Retained earnings

Legal retained earnings
Balance at the beginning of current period
Balance at the end of current period

39

Other retained earnings
Retained earnings brought forward

Balance at the beginning of current period
Changes of items during the period

Total changes of items during the period

2,295

Total retained earnings

Total changes of items during the period

2,295Treasury stock

Purchase of treasury stock

Total changes of items during the period(0)Balance at the end of current period

Total shareholders' equity
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus(1,378)Net income
Purchase of treasury stock

Total changes of items during the period

19

4,032

4,032

39

2,003

2,003

(0)

(831)

3,674
(0)

2,834
(0)

26,20428,2082,295

Balance at the end of current period

4,157

2,003

(Millions of yen)

Fiscal year ended

Fiscal year ended

February 29, 2012

Subscription rights to shares

Balance at the beginning of current period
Changes of items during the period

February 28, 20137

Net changes of items other than shareholders' equity(5)

Total changes of items during the period
Balance at the end of current period

Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock

1

23,916

26,206(1,378)

(831)

3,674
(0)

Net changes of items other than shareholders' equity(5)

Total changes of items during the period

2,290

Balance at the end of current period

26,206

20

1

(5)
2

Total net assets
Balance at the beginning of current period

2

3

2,834
(0)
1

2,004

28,211