Gulliver International Co., Ltd.

Consolidated Results
First Quarter of the Fiscal Year Ending February 28, 2011
(Three-month period ended May 31, 2010)

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 made and beliefs held 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)
First quarter results for the fiscal year ending February 28, 2011

July 9, 2010

Gulliver International Co., Ltd.

st

Stock Code: 7599
Listed exchanges: Tokyo (1 Section)
Inquiries: Executive director: Yukihiro Yoshida
http://www.glv.co.jp/
Chairman: Kenichi Hatori
Telephone: +81 3 5208-5503
Scheduled date for the submission of the financial report: July 15, 2010
Scheduled date for distribution of dividends: -1. Consolidated financial results for the Nine-month period ended May 31, 2010
1) Consolidated operating results

Millions of yen, rounded down

Three months ended
May 31, 2009

Three months ended
May 31, 2010(% change)

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

40,828
1,660
1,613
575
¥62.98--8.9(39.2)(35.1)(38.5)---

2) Financial position (Consolidated)-------

Millions of yen, rounded down

As of May 31, 2010

As of May 31, 2009

62,27816,65726.7¥1,823.07

Total assets .....................................................
Net assets........................................................
Shareholders’ equity ratio (%)..........................
Shareholders’ equity per share (¥)...................
Shareholders’ equity:(% change)

37,492
2,731
2,485
935
¥102.81--

67,94816,39324.1%¥1,794.18

As of May 31, 2010: ¥16,657 million
As of May 31, 2009: ¥16,393 million

2. Dividends

First Quarter dividend per share (¥).................
Interim dividend per share (¥) ..........................
Third Quarter dividend per share (¥)................
Year-end dividend per share (¥) ......................
Annual dividend per share (¥)..........................

Millions of yen, rounded down

Fiscal year ended
February 28, 2010
-38.00-38.0076.00

Fiscal year ending
February 28, 2011------

Fiscal year ending
February 28, 2011(Forecast)-31.00-31.0062.00

Changes to the dividend forecast during the period: None

3. Consolidated financial forecasts for the fiscal year ending February 28, 2011(March 1, 2010 February 28, 2011)
Millions of yen, rounded down

Sales................................................................
Operating income ............................................
Ordinary income ..............................................
Net Income ......................................................
Earnings per share (¥) .....................................

Interim period ending
August 31, 2010
74,000
2,100
2,000
800
¥87.56(2.4)(60.1)(60.2)(64.8)FY ending
February 28, 2011
137,000(8.0)
4,000(24.3)
3,900(22.1)
1,900
446.0¥208.63

Notes: Percentage figures for sales, operating income, etc. represent changes compared to the comparable period of the previous fiscal year.
Changes to the consolidated financial forecast during the period: Yes－ 1 －4. Other
1) Transfer of important subsidiaries during the period (Transfers of certain subsidiaries resulting in changes in the scope of
consolidation): None
2) Utilization of simplified method of accounting: Yes
See Operating Results, Section 4. Other on page 4-5 for more detail.
3) Changes in accounting methods, procedures and presentation in the making of these financial statements (key items
mentioned in Significant Items for the Preparation of Consolidated Financial Statements):
1. Changes following revisions to accounting standards: No
2. Other changes: Yes
Note: See Operating Results, Section 4. Other on page 5 for more detail.
4) Number of shares outstanding (ordinary shares)
1. Number of shares outstanding (including treasury shares):
As of May 31, 2010: 10,688,800
As of February 28, 2010: 10,688,800
2. Number of treasury shares:
As of May 31, 2010: 1,551,938
As of February 28, 2010: 1,551,926
3. Average number of shares during the period:
Three months ended May 31, 2010: 9,136,868
Three months ended May 31, 2009: 9,097,069

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

－ 2 －1. Operating results(1) Outline of consolidated operating results
Net sales for the first quarter of the consolidated fiscal year ending February 28, 2011 increased 8.9% compared to the firstquarter of the previous fiscal year. The primary cause was an increase in the number of cars sold following an increase in thenumber of cars purchased by directly managed Gulliver stores.
Despite an increase in net sales, operating income decreased 39.2% over the first quarter of the previous fiscal year. This waslargely due to a drop in profitability resulting from the effects of support programs such as the eco-car subsidy system that began in
the previous fiscal year and is scheduled to end in September 2010.
However, profitability is improving at a slow and steady rate primarily due to the establishment of a special department aiming tofurther enhance and improve profitability. While we continue to aim to increase the number of cars sold during the fiscal year,
improving profitability is our highest priority.
Sales, general and administrative expenses decreased compared to the first quarter of the previous fiscal year due to a reductionin advertising expenses. Further, an extraordinary loss of ¥156 million was recorded due to factors such as a ¥107 million loss on
disposal of fixed assets following the closure of certain stores.
As a result of the factors noted above, and compared to the first quarter of the previous fiscal year, consolidated net sales for the
first quarter increased 8.9% to ¥40,828 million, operating income decreased by 39.2% to ¥1,660 million, ordinary income decreased
35.1% to ¥1,613 million, and net income for the period was ¥575 million, down 38.5%.
Performance by segment
i. Sales of used automobiles
Among the stores involved in the sale and purchase of cars, as of May 31, 2010, 288 were directly managed Gulliver stores (2less than at the end of the same period of the previous fiscal year and no change from the end of the previous fiscal year). The
number of cars sold increased due primarily to an increase in the number of cars purchased by directly managed Gulliver stores anddespite a reduction in the number of stores, and as a result, net sales for the period increased 9.4%.

Net sales increased but operating income decreased 48.2%. This was largely due to a drop in profitability from the effects of support
programs such as the eco-car subsidy system that began in the previous fiscal year and is scheduled to end in September 2010.
As a result of the above factors, consolidated net sales for the segment increased ¥3,251 million (9.4%) compared to the firstquarter of the previous fiscal year, to ¥37,912 million, and operating income decreased ¥1,567 million (48.2%), to ¥1,683 million.
ii. Financing business
Revenues of G-One Financial Services Co., Ltd., a financial services company, and its former subsidiary G-One Credit Services
Co., Ltd. decreased due to a change in accounting treatment regarding recognition of revenue from auto loans that was
implemented at the end of the previous period. All outstanding shares in G-One Credit Services Co., Ltd. were transferred to SBI
Holdings, Inc. on July 1, 2010.
The number of auto loans of G-One Financial Services Co., Ltd. increased in line with steady growth in the number of retail auto
sales at directly managed Gulliver stores. The increase in the number of auto loans also led to an increase in operating income.
Compared to the end of the previous fiscal year, accounts receivable for the financing business decreased 0.4%, or ¥116 million,－ 3 －to ¥27,024 million.
Due to the above factors, consolidated net sales for the segment decreased 6.4%, or ¥126 million compared to the same quarterof the previous fiscal year to ¥1,864 million, but operating income increased 746.9%, or ¥409 million, to ¥464 million.
iii. Other businesses
As of May 31, 2010, the number of Gulliver franchised stores was 130 (2 less than at the end of the same period of the previous
fiscal year and same as at the end of the previous fiscal year) and as a result, revenues from Gulliver franchised stores decreased.
Further, revenues from fees related to used car auctions recorded in the same period of the previous fiscal year, were not recordedin the period under review due to the closure of the used car auction business in November 2009.
Revenues from consolidated subsidiary Hucobo Co., Ltd., a transport company, increased as a result of an increase in thenumber of land transport vehicles.
As a result, consolidated net sales for the segment decreased 3.6%, or ¥91 million, to ¥2,464 million and operating income
increased 10.0%, or ¥53 million, to ¥594 million.
(2) Financial position
Consolidated financial position and related analysis
Assets, liabilities and shareholders’ equity
Note: Comparisons represent changes compared to the end of the previous fiscal year.
AssetsTotal assets at the end of the period under review decreased 8.3% to ¥62,278 million.
Current assets decreased 11.2% to ¥44,549 million mainly due to a decrease in product inventories. Fixed assets decreased 0.2%
to ¥17,728 million as a result a reduction in investment in facilities due to our restraints on opening directly managed Gulliver storesand other factors.
Liabilities
Total liabilities at the end of the period under review decreased 11.5% to ¥45,621 million.
Current liabilities decreased 14.2% to ¥35,682 million due to the repayment of short-term borrowings and other factors.
Long-term liabilities decreased 0.3% to ¥9,938 million due primarily to a decrease in provisions for losses from affiliated companies.

Net assets
Total net assets at the end of the period under review increased 1.6% to ¥16,657 million due to an increase in retained profit
following the recording of net income for the period.
Outlook for the fiscal year ending February 28, 2011
The interim results forecasts issued along with our financial report on April 8, 2010 have been revised. Please see the statement“Gulliver announces upward revisions to interim results forecasts” issued July 9, 2010. There have been no changes made to thefull-year consolidated results forecasts included in the financial report issued April 8, 2010.
4. Other
1)

Transfer of important subsidiaries during the period (Transfers of subsidiaries resulting in changes in the scope of
consolidation): None.

2)

Changes in accounting principles and procedures:－ 4 －(1) Simple accounting methods
・Calculation methods for estimating loss on ordinary loans
Since there have been no significant change to the loan loss ratio and others calculated at the end of the previous
consolidated fiscal year, these figures were used for the basis of calculations for the estimated loan loss and others at theend of the period under review.
・Calculation methods for depreciation allowance of fixed assets
For assets to which the declining balance method is applied, depreciation allowance is calculated by the amount distributed
proportionally for that consolidated fiscal year.
・Evaluation of inventory assets
Calculations for inventory assets at the end of the third quarter are based on a combination of a reduction of actual
inventories and the actual inventory at the end of the previous consolidated fiscal year. Regarding the reduction in the bookvalue of inventory assets, in respect of only those items where the decline in profitability is clear, we have estimated the net
sale price and reduced the book value accordingly.
・Calculation methods for corporate and other taxes and deferred tax assets and liabilities
The calculation for corporate and other tax payments is limited to important increases or decreases and tax credit items. The
calculation method for evaluating the possibility of recovering deferred tax assets uses the results forecasts and tax planning
used at the end of the previous consolidated fiscal year because there have been no significant change in the management
environment, etc., since the end of the previous consolidated fiscal year nor any other a temporary changes.
・Mutual debt and loans and elimination transactions among consolidated subsidiaries
In cases where the differences in amounts of the aforementioned credit and liabilities are clear, when the differences arewithin a reasonable scope, the amounts are not adjusted and the credit and liabilities are eliminated. When there are
immaterial differences in transaction amounts, eliminations are made using methods such as matching the amount of the
new company.
(2) Utilization of unordinary accounting methods
No applicable items
3)

Changes in accounting methods, procedures and presentation in the making of these financial statements.
Application of accounting standards for the quarterly financial report
Previously, accounting methods used by consolidated subsidiary G-One Financial Services Co., Ltd., a financial services
company, and consolidated subsidiary G-One Credit Services Co., Ltd., recorded revenues such as interest from unexpired
periods during the contractual period. As regards other parts of the contract, unobtainable income from full repayment before
maturity payment in subrogation were excluded and revenues from auto loan contracts were recorded as a lump sum.
However, as of the periods consolidated fiscal year, we have changed our accounting methods to record revenue based on
periods and will no longer recognize such revenue as a lump-sum.
In line with the above change, operating loans have been transferred to a trust subsidiary and trust beneficiary rights andshares issued and sold as collateral assets. However, of these securitized assets through, the part of the assets that weresold at book value and the parts that we continue to hold were each valued at fair value. The accounting methods used has
been changed to recognize the difference between the gains/losses on securitization and the book value allotted to assets
sold.
－ 5 －

As a result, accounting methods differ for the previous and current consolidated first quarter periods. In the previous firstquarter, as compared to the use of the current accounting method, net sales and gross profit are each recorded ¥238 million
higher, and operating income, ordinary income, and net income before taxes are each recorded ¥228 million higher.

－ 6 －Consolidated Balance Sheets
Millions of yen
As of
May 31, 2010

As ofFebruary 28, 2010

AssetsCurrent assets
Cash and deposits.................................

3,183

Trade notes and accounts receivable ....

30,496

3,613
30,287

Products ................................................

5,371

10,351

Short-term loans receivable ...................

1,926

2,045

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

1,186

942

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

3,863

4,340

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

(1,478)(1,400)Total current assets............................

44,54950,17910,343

Depreciation .......................................

10,456(3,447)

Buildings and structures (net) .............

7,009

6,986

Vehicles and transportation ...................
Depreciation........................................

545

336

(117)

(58)

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

(3,356)

Vehicles and transportation (net)........

427

278

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

2,912

2,686

(1,888)(1,722)Tools, fixtures and equipment (net) ....

1,024

964

Land......................................................
Construction in progress ........................

218

218

72

270

Total tangible fixed assets .................
Intangible fixed assets

8,752

8,717

Goodwill ................................................

42

48

Software ...............................................

1,702

1,532

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

18

18

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

1,764

1,599

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

14

14

Shares in affiliate companies .................

834

859

Long-term loans receivable ...................

329

328

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

3,064

3,055

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

2,944

2,955

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

140

367

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

467

525

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

(584)

(654)

Total investments and other assets......

7,211

7,452

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

17,72817,769Total Assets ............................................

62,27867,948－ 7 －Consolidated Balance Sheets
Millions of yen
As of
May 31, 2010
Liabilities
Current liabilities
Accounts payable ....................................
Short-term borrowing...............................
Accrued expenses ...................................
Accrued corporate taxes..........................
Deposits received ....................................
Reserve for bonuses ...............................
Reserve for product warranty ................
Others......................................................
Total current liabilities............................
Long-term liabilities
Long-term borrowing ...............................
Long-term guarantee deposits received ..
Reserve for directors’ retirement
benefit......................................................
Reserve for loss on restructuring ofaffiliated company....................................
Negative goodwill ....................................
Other .......................................................
Total long-term liabilities........................
Total liabilities........................................
Net assets
Shareholders’ equity
Paid-in capital ..........................................
Capital surplus.........................................
Retained profit .........................................
Treasury stock .........................................
Total shareholders’ equity...................

As of
February 28, 2010

3,069
19,721
2,861
965
429
62
1,015
7,556
35,682

4,230
26,159
3,032
1,528
249
570
797
5,020
41,587

8,516
874

8,516
877

421

405

25

57

91
8
9,938
45,621101
99,967
51,555

4,157
4,032
19,027(11,178)
16,038

4,157
4,032
18,798(11,178)
15,810618

583

Valuation difference on othermarketable securities
Translation adjustments...........................
Total appraisal and translationdifferences ..........................................
Total net assets ..................................

618

583

16,657

16,393

Total liabilities and net assets.........

62,27867,948－ 8 －Consolidated Statements of Income
Millions of yen

March 1, 2009 to

March 1, 2010 to

May 31, 2009

May 31, 2010

Sales ...................................................................................
Cost of sales........................................................................
Gross profit......................................................................
Sales general and administrative expenses ........................

37,492
26,52010,97140,82831,509
9,319

8,240

7,658

Operating income ...........................................................
Non-operating income
Interest received...................................................................
Commissions received .........................................................
Amortization of negative goodwill .........................................
Other ....................................................................................

2,731

1,660

0
5
9
29
44

3
6
9
5
24

40
235
13
290
2,485

40
3
27
70
1,613

32
38
17

--9

89

9

Total extraordinary loss ..........................................................
Net income before taxes, etc ..................................................
Income tax, inhabitants tax and enterprise tax .......................
Corporate tax adjustment .....................................................
Total corporate taxes............................................................
Gain from minority interests..................................................

122
428
-66
24
642
1,942
1,307
(314)
992
4

-107
12
-4
125
1,498
940
(17)
922
--

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

935

575

Total non-operating income..................................................
Non-operating expenses
Interest paid.........................................................................
Exchange related loss .........................................................
Other ...................................................................................
Total non-operating expenses .............................................
Ordinary income......................................................................
Extraordinary profit
Gains from cancellation in the previous term.......................
Reversal of allowance for doubtful accounts .......................
Others ..................................................................................
Total extraordinary profit.................................................
Extraordinary losses
Loss from cancellation in the previous term. ..........................
Loss on disposal of fixed assets .............................................
provision of allowance for bad debts ......................................
Loss from restructuring of operations .....................................
Others.....................................................................................

－ 9 －Consolidated Statements of Cash flows
March 1, 2009 to
May 31, 2009

Millions of yen
March 1, 2010 to
May 31, 2010

I. Cash flow from operating activities
Income before taxes, etc. ............................................................................
Depreciation ................................................................................................
Amortization of goodwill ..............................................................................
Amortization of negative goodwill................................................................
Increase (decrease) in allowance for doubtful accounts .............................
Increase (decrease) in reserve for bonuses................................................
Increase (decrease) in reserve for directors’ retirement benefit..................
Increase (decrease) in reserve for product warranty...................................
Interest and dividends received...................................................................
Interest paid.................................................................................................
Gain (loss) on foreign exchange .................................................................
Loss on disposal of fixed assets..................................................................
(Increase) decrease in accounts receivable................................................
(Increase) decrease in inventory assets......................................................
(Increase) decrease in operating loans .......................................................
Increase (decrease) in accrued consumption tax........................................
Increase (decrease) in accounts payable....................................................
Increase (decrease) in accrued expenses ..................................................
Other ...........................................................................................................
Subtotal .......................................................................................................
Interest and dividends received...................................................................
Interest paid.................................................................................................
Corporate taxes paid ...................................................................................
Cash flow from operating activities ..............................................................

1,932
422
6
(9)
86
439
6
33
(0)
40
226
428
(2,379)
291
9
125
199
-987
2,848
0
(40)
(501)
2,306

1,498
317
5
(9)
10
(531)
15
217
(3)
40
(2)
107
(250)
4,966
119
260
(1,140)
993
1,899
8,515
2
(35)
(1,454)
7,028

(209)
0
(371)
(1)
-0
(23)
48
(25)
(0)
(582)

(421)
-(218)
-(80)
18
(35)
27
(51)
54
(708)

(2,610)(62)(0)-(2,672)(6,392)
(37)
(0)
(317)
(6,748)

5
(942)
4,215
3,273

(2)
(430)
3,586
3,156

II. Cash flow from investing activities
Payments for acquisition of tangible fixed assets........................................
Proceeds from sales of tangible fixed assets ..............................................
Payments for acquisition of intangible fixed assets.....................................
Payments for purchases of shares of subsidiaries......................................
Amounts lent ...............................................................................................
Proceeds from repayment of loans .............................................................
Payments for deposits and guarantee.........................................................
Proceeds from repayment of deposits and guarantee ................................
Payments for construction cooperation fund ...............................................
Other ...........................................................................................................
Cash flow from investing activities...............................................................
III. Cash flow from financing activities
Net increase (decrease) in short term borrowings ......................................
Repayment of long-term loans ....................................................................
Payments for purchases of treasury stock ..................................................
Payment of dividends ..................................................................................
Cash flow from financing activities...............................................................
IV. Cash and cash equivalents currency translationdifferences ..............................................................................................
V. (Decrease) increase in cash and cash equivalents ...................................
VI. Cash and cash equivalents at beginning of period...................................
VII. Cash and cash equivalents at end of period ...........................................

－ 10 －

4. Assumptions related to going concern
No applicable items

5. Segment Information
Segment information by business typeFirst quarter of the Fiscal Year Ended February 28, 2010 (March 1, 2009 to May 31, 2009)

Sales
Sales to externalcustomers(2) Inter-segmental sales
or transfers
Total
Operating income

Trading ofused cars

Financialbusiness

Otherbusinesses

34,206

1,573

1,712

454
34,661
3,251

417
1,991
54

844
2,556
541

Millions of yen

Elimination/
All company

Consolidated

37,492--37,492

1,716
39,2083,847(1,716)(1,716)(1,116)-37,492
2,731

Total

First quarter of the Fiscal Year Ending February 28, 2011 (March 1, 2010 to May 31, 2010)

Sales
Sales to externalcustomers(2) Inter-segmental sales
or transfers
Total
Operating income

Trading ofused cars

Financialbusiness

Otherbusinesses

37,560

1,525

1,743

352
37,912
1,683

339
1,864
464

721
2,464
594

Millions of yen

Elimination/
All company

Consolidated

40,828--40,828

1,412
42,241
2,743(1,412)(1,412)(1,083)-40,828
1,660

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:
Business Classification
Used car sales
Financing business

Principal Product Name or Service Name
Purchase and sales of used automobiles such as through directly operated storesConsolidated subsidiary G-One Financial Services Co., Ltd. provides auto loans and other financing
services.

Other businesses

Provision of services for franchises involved in the management of Gulliver, for the sale and purchaseof cars, and stores established with graphic sales systems.

Segment information by geographical location
For the first quarter of the current consolidated fiscal year over 90% of sales were from Japan and therefore segment information bygeographical location has been omitted.

Overseas sales
For the first quarter of the current consolidated fiscal year overseas sales were less than 10% of consolidated sales and havetherefore been omitted.

－ 11 －