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 Nine Months Ended November 30, 2014
(Based on Japanese GAAP)

January 13, 2015

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
January 14, 2015

Holding of quarterly financial results meeting:Yes

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

–
Yes

TEL

03-5208-5503(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended November 30, 2014 (from March 1, 2014 to November 30, 2014)(1) Consolidated financial results (cumulative)

Nine months ended November 30, 2014
Nine months ended November 30, 2013

Net sales

Millions of yen
117,623
128,673

Operating income% Millions of yen
(8.6)
4,626
17.8
5,912

Net income per share

Yen
27.28
36.58

Nine months ended November 30, 2014
Nine months ended November 30, 2013
(2) Consolidated financial position

Total assets

As of November 30, 2014
As of February 28, 2014

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

Year ending February 28, 2015 (Forecast)Yen––% Millions of yen(22.4)
2,765
72.9
3,707

Equity ratio

Net assets per share

%66.9
62.2

Yen336.16323.99

Annual dividends per share

2nd quarter-end

Yen
5.00
7.50

3rd quarter-end

Yen––

Fiscal year-end

Yen
8.00

12.50

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

Millions of yen
173,000%(25.4)
89.9

Yen
27.27
36.57

Millions of yen
34,08932,846

2. Cash dividends
1st quarter-end% Millions of yen(21.7)
4,665
78.1
6,012

Net income

Diluted net income per share

Net assets

Millions of yen
50,94552,779Percentages indicate year-on-year changes

Ordinary income

TotalYen
13.00
20.00

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
2.1
8,500
19.8
8,500
18.0
5,100
17.0
50.31

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended November 30, 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 November 30, 2014

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

106,888,000 shares

As of November 30, 2014

5,480,170 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)
Nine months ended November 30, 2014

101,385,882 shares Nine months ended November 30, 2013

2101,368,200 shares

1.

Qualitative information on settlement of accounts for the first three quarters(1) Qualitative information on consolidated operating results
In the first nine months of the fiscal year under review (March 1 to November 30, 2014), the number of cars purchased at directly managed stores
declined year on year. Although the number of store visitors increased due to successful measures to attract customers, mainly through theInternet, the increase failed to make up for the prolonged impact of conservative consumer spending caused by the consumption tax rate hike on
April 1.
On the other hand, the number of retail car sales at directly managed stores increased year on year as display sales stores continued to record
strong sales.
The number of directly managed stores at the end of the nine-month period increased by 33 stores from the end of the previous fiscal year to 337
stores, mainly due to continuing a strategy of aggressively opening display sales stores such as WOW!TOWN, OUTLET , LIBERALA, andSNAP HOUSE.
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 and Advertising expenses.
Due to the above, consolidated business results for the third quarter were as follows: consolidated net sales were 117,623 million yen (down8.6% from the same term last year), operating income was 4,626 million yen (down 21.7% from the same term last year), ordinary income was
4,665 million yen (down 22.4% from the same term last year) and net income was 2,765 million yen (down 25.4% from the same term last year).
(2) Qualitative information on consolidated financial position
AssetsTotal assets as of November 30, 2014 were 50,945 million yen, an decrease of 3.5% from February 28, 2014.
Current assets were 27,740 million yen, down 17.1% from the same date. The primary contributing factor was a 3,800 million yen decrease in
cash and deposits, a 1,512 million yen increase in merchandise and a 3,324 million yen decrease in notes and accounts receivable-trade.
Total noncurrent assets at November 30, 2014 increased by 20.1% from February 28, 2014, to 23,205 million yen. This mainly reflected a 2,311
million yen increase in buildings and structures and a 622 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 1,629 million yen
Liabilities
Total liabilities at November 30, 2014 decreased by 15.4% from February 28, 2014 to 16,855 million yen.
Current liabilities at November 30, 2014 increased by 5.6% from February 28, 2014 to 14,277 million yen. The primary contributing factor was a4,002 million yen increase in Short-term loans payable, and a 1,809 million yen decrease in income taxes payable,
Total noncurrent liabilities at November 30, 2014 decreased by 59.8% from February 28, 2014 to 2,578 million yen. The primary contributing
factor was a 3,952 million yen decrease in Long-term loans payable
Net assets
Net assets at November 30, 2014 increased by 3.8% from February 28, 2014 to 34,089 million yen, mainly due to a 1,208 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 the Consolidated Results, Second Quarter of the Fiscal Year Ending February 28, 2015 (Japanese GAAP; Consolidated) issued on Oct 10,2014.
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 third quarter of the fiscal year under review decreased by 655 million yen andoperating income, ordinary income, and income before income taxes and minority interests all increased by the equivalent amount.

3

Quarterly consolidated financial statements
Consolidated balance sheets

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
Deferred tax assets
OtherAllowance 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 November 30, 2014

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

10,887
3,838
10,926
978
1,171
(62)
27,74015,586(5,605)
9,981
215
(185)
30
2,740
(2,165)575
218
184
10,98918,422(6,129)12,29260(57)
3
2,972(2,295)677
218
807
13,999

993
17
1,011

1,211
170
1,381

3435
251
3,319
2,812
253
302
(62)
7,315
19,316
52,779

376
375
3,569
3,227
263
370
(63)
7,823
23,20550,945

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' equityCapital 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 November 30, 2014

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

2,808
4,002
1,467
307
184
79
1,282
4,145
14,277

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

47700
498
1,332
2,578
16,855

4,157
4,03228,548(3,975)32,761

4,157
4,032
29,756(3,947)33,9988080
432,846
52,77990
90–
34,08950,9455

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended
Nine months ended
November 30, 2013
November 30, 2014
Net sales
128,637
117,623
Cost of sales
101,379
88,374Gross profit
27,257
29,248Selling, general and administrative expenses
21,345
24,621
Operating income
5,912
4,626
Non-operating income
Interest income
61
12Compensation income–
12Foreign exchange gains
93
Reversal of allowance for doubtful accounts
52–
Insurance income
812
Other
33
30
Total non-operating income
16672
Non-operating expenses
Interest expenses
53
30
Provision of allowance for doubtful accounts
–
0
Other
122
Total non-operating expenses
66
34
Ordinary income
6,012
4,665
Extraordinary income
Reversal of provision for loss on business of50–
subsidiaries and associates
Other–
0Total extraordinary income
500Extraordinary losses
Loss on retirement of non-current assets
59112
Lease contract cancelation penalty
–24
Other
187
Total extraordinary losses
77144
Income before income taxes and minority interests
5,984
4,522
Income taxes - current
2,625
1,534
Income taxes - deferred(347)222
Total income taxes
2,277
1,756
Income before minority interests
3,707
2,765
Net income
3,707
2,765

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

Nine months ended
November 30, 2013
3,707

(Millions of yen)
Nine months ended
November 30, 2014
2,765

88
3,716

1010
2,775

3,716

2,775