Gulliver International Co., Ltd.

Financial Results

Fiscal 2010
(March 1, 2009 to February 28, 2010)

This document is a translation of sections of the original Japanese as a guide for non-Japanese
investors. It contains forward-looking statements based on a number of assumptions and beliefs madeby management 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.
－ 1 －SUMMARY OF FINANCIAL STATEMENTS
Results for the fiscal year ended February 28, 2010

Gulliver International Co., Ltd.

April 8, 2010

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Stock Code: 7599
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http://www.glv.co.jp/company/en
Inquiries:
director:．．
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．Executive．．．．．．．．
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．．．． Yukihiro Yoshida
Chairman:
Kenichi
Hatori
Telephone: +81 3 5208-5503．．．．．．
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Scheduled date of the regular shareholders’ meeting: May 26, 2010
Scheduled date for submission of the financial report: May 28, 2010
Scheduled date for distribution of dividends: May 27, 2010
1. Consolidated financial results for the fiscal year ended February 28, 2010
1) Consolidated Operating Results(Millions of yen, rounded down)

Fiscal year ended
February 28, 2009

Fiscal year ended
February 28, 2010(% change)

Sales...............................................................................
Operating income ...........................................................
Ordinary income .............................................................
Net income .....................................................................
Earnings per share (¥) ....................................................
Fully diluted earnings per share (¥) ................................
Return on equity (%).......................................................
Ratio of ordinary income to shareholders’ equity (%) .....
Ratio of operating income to sales (%) ...........................

148,853
5,281
5,008
348
38.29
-2.2
7.9
3.6

(% change)

(9.1)
35.2
90.0
--

163,6693,905
2,635(2,836)(300.38)-(15.5)4.8
1.6(14.1)(56.0)(70.0)--

Notes:
1. Investment gains and losses under the equity method: FY ended February 2010: (¥12 million); FY ended February 2009: ¥ -- million
2. Percentage figures for sales, operating income, etc. represent changes compared to the previous fiscal year.

2) Financial Position (consolidated)
Total assets ...................................................................
Net assets......................................................................
Shareholders’ equity ratio (%) .......................................
Net assets per share (¥) ................................................

(Millions of yen, rounded down)

As of February 28, 2010
67,94816,39324.1%¥1,794.18

As of February 28, 2009
58,773
15,83626.9%¥1,704.02

Note:
1. Shareholders’ equity: FY ended February 2010 ¥16,393 million; FY ended February 2009: ¥15,829 million

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..................

(Millions of yen, rounded down)

Fiscal year ended
February 28, 2009
(6,539)(2,907)
10,051
4,215

Fiscal year ended
February 28, 2010
(3,586)(1,336)
5,056
3,586

2. Dividends
Fiscal year ended
February 28, 2009
Interim dividend per share (¥) ........................................
Year-end dividend per share (¥) ....................................
Annual dividend per share (¥)........................................
Total dividends paid (Millions of yen).............................
Dividend payout ratio (%) ..............................................
Dividends to net assets ratio (%) ...................................

41.00
0.00
41.00
393
-2.1％

－ 2 －

Fiscal year ended
February 28, 2010
38.00
38.00
76.00
692
198.5％
4.4％

Fiscal year ended
February 28, 2011
(forecast)
31.00
31.00
62.00
--

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

Sales............................................................................

Interim period ending
August 31, 2010
69,500(8.3%)FY ending
February 28, 2011
137,000(8.0%)

Operating income ........................................................

1,000(81.0%)

4,000(24.3%)

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

950(81.1%)

3,900(22.1%)Net Income ..................................................................

400(82.4%)

1,900

446.0％

Earnings per share (¥) .................................................

¥43.92¥208.63

Percentage figures for sales, operating income, etc. represent changes compared to the previous comparable fiscal period.

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, procedures and presentation in the preparation of these financial statements(1) Changes in accordance with revision to accounting standards: None
(2) Other changes: Yes
Note: For details, see page 23-24 of ‘Material Items Forming the Basis for the Preparation of the Consolidated Financial
Statements’3) Number of shares outstanding (ordinary shares)(1) Number of shares outstanding at end of period (including treasury shares):
As of February 28, 2010: 10,688,800 shares; As of February 28, 2009: 10,688,800 shares(2) Number of treasury shares at end of period:
As of February 28, 2010: 1,551,926 shares; As of February 28, 2009: 1,591,730 shares
Note: See Per share information on page 28 for details on the number of outstanding shares used for the basis of calculations forearnings per share－ 3 －Reference: Outline of Non-Consolidated Financial Results1.

Non-consolidated financial results for the fiscal year ended February 28, 2010

1) Non-consolidated operating results(Millions of yen, rounded down)

Fiscal year ended
February 28, 2009

Fiscal year ended
February 28, 2010(% change)

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

136,406
5,241
5,355
1,840
¥202.08

(2.3)
21.1
35.3
--

(% change)

139,572
4,327
3,983(2,093)(¥221.75)--(25.6%)(85.1%)(86.4%)--

Percentage figures for sales, operating income, etc. represent changes compared to the previous fiscal year

2) Financial position (Non-consolidated)(Millions of yen, rounded down)

As of February 28, 2010
Total assets ...................................................................
Net assets......................................................................
Shareholders’ equity ratio (%) .......................................
Net assets per share (¥) ................................................

As of February 28, 2009

57,84817,00529.4%¥1,861.16

44,307
15,26334.5%¥1,677.81

Note:
1. Shareholders’ equity: FY ended February 2010: ¥17,005 million; FY ended February 2009: ¥15,263 million

2. Non-consolidated forecasts for the fiscal year ending February 28, 2011 (March 1, 2010 to February 28, 2011)(Millions of yen, rounded down)

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

Interim period ending
August 31, 2010
65,900(2.9)
800(82.9)
800(82.9)
350(85.1)¥38.43

FY ending
February 28, 2011
130,000(4.7)
3,600(31.3)
3,600(32.1)
1,800(2.2)¥197.65

Percentage figures for sales, operating income, etc. represent changes compared to the previous comparable fiscal period.
Forecasts and forward-looking statements in this document are based on a number of assumptions and beliefs made by management in light of
information currently available. Actual financial results may differ materially depending on a number of factors, including economic conditions,legislative and regulatory developments, delay in new product or service launches, and pricing and product initiatives of competitors.

－ 4 －1. Operating results(1) Outline of consolidated operating results
Net sales for the consolidated fiscal year ended February 28, 2010 decreased 9.1% compared to the previous
fiscal year due to a reduction in the number of cars purchased by directly managed Gulliver stores and a decreasein sales at consolidated subsidiary G-Trading Co., Ltd.
Operating income increased 35.2% compared to the previous fiscal year despite the decrease in net sales. The
primary factor improving our profit ratio was the retail sale through directly managed Gulliver stores of about 40,400
cars, a 38% increase compared to the previous fiscal year. Retail sales to regular consumers are more profitable
than the sale of used cars wholesale to used car operators through used car auctions. Additionally, sales, generaland administrative expenses decreased compared to the previous fiscal year due to cost reduction efforts and otherfactors which contributed to the increase in operating income. However, due to the increase in promotional activities
to strengthen retail sales, advertising expenses increased compared to the previous fiscal year.
During the fiscal year under review, certain revisions have been made to accounting methods for recording
revenue at consolidated subsidiary G-One Financial Services Co., Ltd., a financial services company, and its
consolidated subsidiary G-One Credit Services Co., Ltd. (hereafter financial subsidiaries). Previously, accounting
methods recognized revenues derived from auto loans handled by financial subsidiaries as a lump sum of
approximately 50% of the associated revenue upon creation of the auto loan contract. However, Gulliver has
adopted a more conservative approach to revenue and loss recognition and changed its accounting methods torecord revenue based on periods (divided over accounting periods) and will no longer recognize revenue as a
lump-sum. Following this change to the accounting method and in comparison to use of the previous accounting
method, the operating income of the financial companies decreased by ¥1,073 million (reduction in profit).
Additionally, a foreign exchange loss of ¥259 million from consolidated subsidiary G-Trading Co., Ltd. wasrecorded under non-operating expenses. Further, a loss of ¥1,386 million was recorded as a revised loss for theprevious period and a ¥938 million loss from disposal of fixed assets was recorded as an extraordinary loss due tothe change in accounting treatment for the financial subsidiaries and other factors.
As a result of the factors noted above, consolidated net sales for the fiscal year under review decreased by 9.1%
compared to the previous fiscal year to ¥148,853 million, operating income increased 35.2% to ¥5,281 million andordinary income increased 90.0% to ¥5,008 million. Net income was ¥348 million.

Performance by segment
i. Sales of used automobiles
Among the stores involved in the sale and purchase of cars, as of February 28, 2010, 288 were directly operated(20 less than at the end of the previous fiscal year).
As previously mentioned, net sales decreased due to a decrease in the number of cars purchased by directly
managed Gulliver stores and reduced sales at consolidated subsidiary G-Trading Co., Ltd. Although sales
decreased, operating income for this segment increased 17.9% compared to the same period in the previous fiscal
year.
－ 5 －

The primary causes of the increase in profits despite the decrease in revenues were strong retail sales of usedcars, with 40,400 cars sold, an increase of 38%, and a year on year decrease in sales, general and administrative
expenses due to cost reduction efforts.
As a result, consolidated net sales for the period under review decreased ¥15,690 million, or 10.2% to ¥138,607
million compared to the previous fiscal year, and operating income increased 17.7%, or ¥1,154 million, to ¥7,693
million.

ii. Financing business
The number of auto loans of G-One Financial Services Co., Ltd., a financial services company, increased relative
to the growth in the number of retail auto sales. However, due to the change in accounting treatment for the financial
subsidiaries regarding revenue recognition from auto loans, and compared to using the previous accounting
treatment, net sales and operating income of the financial subsidiaries were about ¥1.1 billion and about ¥1.0 billion
respectively.
Following the increase in the number of auto loans, accounts receivable for the financial subsidiaries at the end of
the fiscal year were ¥7,908 million higher, up 43.1%, compared to ¥26,271 million at the end of the previous fiscal
year.
As a result, consolidated net sales for the period under review increased 4.8%, or ¥306 million, over the previous
fiscal year to ¥6,767 million, and an operating loss of ¥44 million was recorded compared to operating income of¥103 million in the previous fiscal year.

iii. Other businesses
As of February 28, 2010, the number of Gulliver franchised stores was 130 (15 fewer than at the end of theprevious fiscal year) and consequently revenues from Gulliver franchised stores also decreased. Further, revenues
from consolidated subsidiary Hucobo Co., Ltd., a transport company, also decreased.
As a result, consolidated net sales for the segment decreased 15.5%, or ¥1,725 million, to ¥9,419 million incomparison to the previous fiscal year and operating income decreased 15.0%, or ¥374 million, to ¥2,127 million.

Outlook for the fiscal year ending February 28, 2011
Note: Forecasts represent changes compared to the previous fiscal year.

In the domestic market for new cars, and due to the effects of support measures such as the eco-car subsidy
system (scheduled to end in September 2010), monthly sales of new cars compared to the same month of theprevious fiscal year have been increasing since September 2009. In the used car market, however, the monthly
number of registered used cars has decreased compared to the previous fiscal year impacted by the strength of the
new car market and other factors.
In consideration of the above, we are forecasting an ongoing difficult market environment for used automobile
dealers although the eco-car subsidy system is scheduled to end in September 2010. In our response to this, we willseek to raise our profitability, establish a section aimed at focusing on further improvements, and implement cost
reductions through operational improvements. We aim to continue to strengthen retail sales within our core used car－ 6 －sales business. As regards advertising, while finding a balance between increasing the appeal of retail sales andthose of used car purchases we will strengthen marketing development in accordance with regional characteristics(area marketing). Further, we will strengthen initiatives to acquire more repeat customers, and introductions fromexisting customers. Through initiatives such as these, we plan on becoming more efficient at attracting customers.
In store development, we will emphasize efficiency, restrain development of new directly managed stores andemphasize increasing the productivity of each store.
We will continue to develop the financing business as an operation focusing on auto loans, however G-One Credit
Services Co., Ltd., a credit subsidiary of G-One Financial Services Co., Ltd., is in discussions with SBI Holdings
concerning a transfer of shares.
We are not forecasting any significant change in other businesses.
As a result, consolidated forecasts for the fiscal year ending February 28, 2011 are for net sales to decrease 8.0%
to ¥137,000 million, operating income to decrease 24.3% to ¥4,000 million, ordinary income to decrease 22.1% to¥3,900 million, and net income to increase 446.0% to ¥1,900 million.

(2) Financial position

Consolidated financial position and related analysis
Assets, liabilities and shareholders’ equity
1) Current assets
The balance of current assets at the end of the period under review increased ¥9,976 million compared to the end of
the previous fiscal period to ¥50,179 million, due primarily to a ¥2,306 million increase in products and a ¥6,990
increase in accounts receivable.
2) Fixed assets
The balance of fixed assets at the end of the period under review decreased ¥801 million compared to the end of
the previous fiscal period to ¥17,769 million, primarily due to a ¥473 million decrease in construction cooperation
money and deposits and guarantee money, largely due to the expansion of new directly managed stores.
3) Current liabilities
The balance of current liabilities at the end of the period under review increased ¥725 million compared to the end of
the previous fiscal period to ¥41,587 million, due primarily to a ¥961 million increase in accrued corporate taxes.
4) Long-term liabilities
The balance of long-term liabilities at the end of the period under review increased ¥7,892 million compared to theend of the previous fiscal period to ¥9,967 million, due primarily to a ¥7,891 million increase in borrowings resulting
from the shift from short-term borrowings to long-term borrowings.
5) Minority interests
There was no balance of minority interests at the end of the period under review representing a decrease of ¥2
million compared to the end of the previous fiscal period.
6) Net assets
The balance of net assets at the end of the period under review increased ¥557 million compared to the end of theprevious fiscal period to ¥16,393 million, primarily due to a ¥287 million decrease in treasury stock.

－ 7 －Cash flow
For the fiscal year ended February 28, 2010, cash flow from operating activities and investing activities were
negative while cash flow from financing activities was positive. Overall cash flow was a negative figure of ¥132
million. The balance of cash and cash equivalents at the end of the period was ¥3,586 million.
Cash flow from operating activities
Cash and cash equivalents used in operating activities was ¥3,586 million.
Principal components of this included net income before adjustment for taxes of ¥2,257 million, an increase inaccounts receivable of ¥7,328 million, and corporate taxes paid of ¥1,649 million.
Cash flow from investing activities
Net cash used in investing activities was ¥1,336 million. The principal factors contributing to this result were
investments in the opening of new directly managed stores and in internal systems.
Cash flow from financing activities
Net cash generated from financing activities was ¥5,056 million. This was largely due to the proceeds fromborrowings.
Trends in shareholders’ equity and cash flow indicators are as follows:
FY 2006

FY 2007

FY 2008

FY 2009

FY 2010Equity ratio (%)

41.3

41.2

40.4

26.9

24.1

Shareholders’ equity(market price base)ratio (%)

338.5

181.9

80.6

19.8

44.2

Debt redemption years(years)

2.1

2.3

12.7

--

--

Interest coverage ratio

141.3

93.6

9.6

--

--

Notes:
1. Breakdown of each indicator
Equity ratio = shareholders’ equity/total assets
Shareholders’ equity to asset ratio by market price = 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 profits and dividend forecasts
We regard the return of profits to shareholders as an important management issue and also place emphasis on
our dividend payout ratio. Specifically, the Company is targeting a dividend payout ratio of about 30% ofconsolidated net income. Actual dividends may differ from previously announced forecasted dividends due to
disparities between consolidated net income results and their forecasts.
The dividend payout ratio is calculated after excluding the effects of the change (amount of reduction) in operating
results due to the change in accounting method for financial subsidiaries, which was an unexpected and temporary
effect on consolidated net income. As a result, the annual dividend per share for the fiscal year ended February2010 was ¥76.00 consisting of an interim dividend of per share of ¥38.00 and a year-end dividend per share of－ 8 －¥38.00.
Based on these policies, forecast dividends per share for the fiscal year ended February 28, 2010 are based on aforecasted consolidated net income of ¥1,900 million and are expected to be ¥62.00 per share (an interim dividendof ¥31.00 and a year-end dividend of ¥31.00).
Retained capital will be used to carry out effective and efficient investments in such areas as strengthening
internal infrastructure, developing new businesses, and training and educating personnel with the aim of further
raising profits and increasing corporate value, as well as strengthening competitiveness and improving services.

－ 9 －Consolidated Balance Sheets(Millions of yen)
As of February 28, 2010

As of February 28, 2009ASSETS
Current assets
Cash and deposits.................................

3,613

4,215

Trade notes and accounts receivable ....

30,28723,296Inventory................................................

--

8,169

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

10,351--

Operating loans receivable ....................

2,045

2,287

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

942

456

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

4,340

2,726

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

(1,400)(951)

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

50,17940,202

Building and structures ..........................

10,343

11,011

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

(3,356)(3,241)

Building and structures (net) ..............

6,986

7,770

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

336

53

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

(58)

(39)

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

278

13

Fixed assets
Tangible fixed assets

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

2,686

3,204

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

(1,722)(2,039)Tools, fixtures and equipment (net)....

964

1,164

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

218

409

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

270

164

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

8,717

9,522

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

48

77

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

1,532

1,545

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

18

72

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

1,599

1,695

14

118

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

859

150

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

328

158

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

3,055

3,953

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

2,955

2,530

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

367

434

Investments and other assets
Investment securities .............................
1

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

525

406

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

(654)

(400)

Total investments and other assets ...
Total fixed assets ...............................

7,452
17,7697,352
18,571

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

67,94858,773－ 10 －

Consolidated Balance Sheets(Millions of yen)
As of February 28, 2010

As of February 28, 2009

LIABILITIESCurrent liabilities
Accounts payable ..........................................

4,230

2,993

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

26,15928,643

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

3,032

3,259

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

1,528

567

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

249

166

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

570

559

Reserve for merchandize warranty..............

797

354

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

5,020

4,317

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

41,58740,862Long-term liabilities
Long-term borrowing .....................................

8,516

624

Long-term guarantee deposits received ........

877

874

Reserve for directors’ retirement benefit .......

405

425

Negative goodwill ..........................................

101

138

Reserve for loss from subsidiaries ................

57--

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

9

11

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

9,967

2,074

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

51,55542,937

4,157

4,157

NET ASSETS
Shareholders’ equity
Paid in capital ................................................
Capital surplus ...............................................

4,032

4,032

Retained profit ...............................................

18,79818,768Treasury stock ...............................................

(11,178)(11,465)

Total shareholders’ equity .........................

15,81015,492

Valuation difference on other marketablesecurities ..................................................

--

(8)

Valuation and translation adjustments.......

583

345

Translation adjustments ................................

583

336

Warrants for new shares..................................

--

4

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

--

2

Total net assets................................................

16,393

15,836

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

67,94858,773－ 11 －

Consolidated Statements of Income
March 1, 2009 to
February 28, 2010

(Millions of yen)March 1, 2008 to
February 28, 2009

148,853
109,934
38,91833,637
5,281

163,669
124,072
39,59635,691
3,905

14
---37
25
91
169

15
1
21
34
37
-170
282

138
-253
50
442
5,008

177
101
1,149
123
1,552
2,635

111
14
90
-13
229

-10
-43
-54

938
1,386
--

640
-414

--

376

--

249

Total extraordinary losses ..........................................
Income (loss) before taxes, etc. ..............................
Income tax, inhabitants tax and enterprise tax........
Corporate tax adjustment ........................................
Total corporate taxes ..............................................
Income (loss) from minority interests ......................

42
--24
155
-91
340
2,979
2,257
2,328
(423)
1,905
3

-981
76
--39
701
120
3,601
(912)
2,328
(9)
2,318
(395)

Net income (loss) .....................................................

348(2,836)

Sales ...........................................................................
Cost of sales................................................................
Gross profit ...........................................................
Sales general and administrative expenses ..................
Operating income.......................................................
Non-operating income
Interest received ......................................................
Dividends received. .................................................
Commissions received.............................................
Income from breach of contract ...............................
Depreciation of negative goodwill ............................
Proceeds from insurance .........................................
Other .......................................................................
Total non-operating income
Non-operating expenses
Interest paid ............................................................
Addition to allowance of doubtful accounts .............
Exchange related losses.........................................
Other.......................................................................
Total non-operating expenses ....................................
Ordinary income .........................................................
Extraordinary profit
Gain from prior period profit revision.......................
Gain from sale of fixed assets.................................
Gain on sale of investment securities .....................
Gain on liquidation of subsidiary .............................
Other.......................................................................
Total extraordinary profit .............................................
Extraordinary losses
Loss on disposal of fixed assets .............................
Loss from prior period profit revision.......................
Impairment losses...................................................
Provision for reserve for directors’ retirement
benefit for prior years
Provision for merchandize warranty reserve forprior years ...........................................................
Provision for subsidiaries’ losses ............................
Evaluation loss on inventory assets ........................
Evaluation loss on shares in affiliates .....................
Loss on adjustment to affiliates...............................
Loss on adjustments to operations .........................
Evaluation loss on investment securities ................
Provision for doubtful accounts ...............................
Other.......................................................................

－ 12 －

Changes in Consolidated Shareholders’ Equity
Millions of yen, rounded down
Fiscal year ended
February 28, 2010
Shareholders’ equity
CapitalBalance at end of previous term.........................................
Changes during the period
Total change during the period .......................................
Balance at end of term........................................................
Capital surplus
Balance at end of previous term.........................................
Changes during the period
Disposal of treasury stock...............................................
Exchange loss on disposal of treasury stock ..................
Total change during the period.......................................
Balance at end of term .......................................................
Retained profit
Balance at end of previous term.........................................
Changes during the period
Dividends ........................................................................
Exchange loss on disposal of treasury stock ..................
Change in scope of consolidation ...................................
Net income (loss) ............................................................
Total change during the period.......................................
Balance at end of term.......................................................
Treasury stock
Balance at end of previous term ........................................
Changes during the period
Acquisition of treasury stock...........................................
Disposal of treasury stock ..............................................
Total change during the period.......................................
Balance at end of previous term ........................................
Total shareholders’ equity
Balance at end of previous term ........................................
Changes during the period
Dividend .........................................................................
Net income (loss) ...........................................................
Acquisition of treasury stock...........................................
Disposal of treasury stock ..............................................
Changes to the scope of consolidation ...........................
Total change during the period........................................
Balance at end of previous term.........................................
Valuation differences due to foreign exchange
Valuation differences on other marketable securities
Balance at end of previous term ........................................
Changes during the period
Changes to items other than shareholders’ equity
during the period (net) ....................................................
Total change during the period.......................................
Balance at end of term.......................................................

－ 13 －

Fiscal year ended
February 28, 2009

4,157

4,157

-4,157-4,157

4,032

4,032

(48)
48
-4,032---4,032

18,76822,833

(345)
(48)
75
348
30
18,798(1,228)--(2,836)(4,064)
18,768(11,465)(10,678)

(4)
291
287
(11,178)

(787)
-787
(11,465)

15,492

20,344

(345)
348
(4)
243
75
318
15,810(1,228)(2,836)(787)--(4,851)
15,492

(8)

7

8

(16)

8
-

(16)
(8)

Changes in shareholders’ equity during the period (continued)
Millions of yen, rounded down
Fiscal year ended
February 28, 2010
Translation adjustment accountBalance at end of previous term ........................................
Changes during the period
Changes to items other than shareholders’ equity
during the period (net) ....................................................
Total change during the period.......................................
Balance at end of term .......................................................
Total valuation and translation differences
Balance at end of previous term.....................................
Changes during the period
Changes to items other than shareholders’ equity
during the period (net) ....................................................
Total change during the period.......................................
Balance at end of term .......................................................
Warrants
Balance at end of previous term ........................................
Changes during the period
Changes to items other than shareholders’ equity
during the period (net) ....................................................
Total change during the period.......................................
Balance at end of term .......................................................
Minority interests
Balance at end of previous term ........................................
Changes during the period
Changes to items other than shareholders’ equity
during the period (net) ....................................................
Total change during the period.......................................
Balance at end of term .......................................................
Net assets
Balance at end of previous term ........................................
Changes during the period
Surplus dividend..............................................................
Net income (loss) ...........................................................
Acquisition of treasury stock...........................................
Disposal of treasury stock ..............................................
Changes to the scope of consolidation...........................
Changes to items other than shareholders’ equity
during the period ............................................................
Total change during the period ..........................................
Balance at end of term .......................................................

－ 14 －

Fiscal year ended
February 28, 2009

345

13

234

331

234
583

331
345

336

20

243

315

243
583

315
336

4

4

(4)

0

(4)
--

0
4

2

400

(2)

(397)

(2)
--

(397)
2

15,836

20,769

(345)
348
(4)
243
78

(1,228)(2,836)
(787)
---

236

(82)

556
16,393(4,933)
15,836

Consolidated Statements of Cash flows
March 1, 2009 to
February 28, 2010

(Millions of yen)March 1, 2008 to
February 28, 2009

2,257
1,651
248
(37)
36
254
443
(19)
(14)
138
37
(14)
-938
(90)
1,275
-(7,328)(2,326)
1,115
239
46
(671)
(1,819)14(131)(1,649)(3,586)

(912)
2,385
67
(37)
(3)
1,038
354
425
(17)
177
1,149
(10)
640
---414(6,482)(1,562)
(515)
(202)
46
(283)
(3,328)17(177)(3,050)(6,539)(1,055)
209
(815)
(8)
(14)
222
(99)
27
-(85)
257
(179)
212
(27)
18
(1,336)(2,253)
32
(478)
(212)
(98)
8
(9)
3
100
------(2,907)

I. Cash flow from operating activities
Income (loss) before taxes, etc. .............................................................
Depreciation ...........................................................................................
Depreciation of goodwill .........................................................................
Depreciation of negative goodwill...........................................................
Increase in reserve for bonuses .............................................................
Increase (decrease) in allowance for doubtful accounts ........................
Additional reserve for merchandize warranty .........................................
Increase (decrease) in allowance for directors’ retirement benefit .....
Interest and dividends received..............................................................
Interest paid............................................................................................
Gain (loss) on foreign exchange ............................................................
Gain on sale of fixed assets ...................................................................
Loss on sale of fixed assets ...................................................................
Loss on disposal of fixed assets.............................................................
Loss (gain) on sale/evaluation of investment securities .........................
Loss from prior period profit revision ......................................................
Impairment losses ..................................................................................
Increase (decrease) in accounts receivable...........................................
Increase (decrease) in inventory assets.................................................
Increase (decrease) in accounts payable...............................................
Increase (decrease) in operating loans ..................................................
(Increase) decrease in accrued consumption tax...................................
Other.......................................................................................................
Subtotal ..................................................................................................
Interest and dividends received..............................................................
Interest paid............................................................................................
Corporate taxes paid ..............................................................................
Cash flow from operating activities....................................................
II. Cash flow from investing activities
Payments for acquisition of tangible fixed assets...................................
Proceeds from sale of tangible fixed assets...........................................
Payments for acquisition of intangible fixed assets................................
Payments for acquisition of shares in affiliates ......................................
Payments for acquisition of investment securities..................................
Proceeds from sales of investment securities ........................................
Amounts lent ..........................................................................................
Proceeds from repayment of loans ........................................................
Increase (decrease) in deposits and guarantee payments ....................
Payment on difference in deposits and guarantee payments ................
Proceeds from return of deposits and guarantee payments ..................
Payments for repayment of construction cooperation fund ....................
Proceeds from return of construction cooperation fund .........................
Payment into fixed term deposits ...........................................................
Other.......................................................................................................
Cash flow from investing activities ....................................................

－ 15 －

Consolidated Statements of Cash flows (continued)
March 1, 2009 to
February 28, 2010
III. Cash flow from financing activities
Net increase (decrease) in short-term borrowings .................................
Proceeds from long-term borrowings .....................................................
Repayment of long-term debt.................................................................
Payments for acquisition of treasury stock.............................................
Dividend payments.................................................................................
Dividends paid to minority shareholders ................................................
Other ......................................................................................................
Cash flow from financing activities....................................................
IV. Cash and cash equivalents currency translation differences........
V. (Decrease) increase in cash and cash equivalents..........................
VI. Cash and cash equivalents at beginning of period ........................
VII. Increase (decrease) in cash and cash equivalents from change
in scope of consolidation.................................................................
VIII. Cash and cash equivalents at end of period..................................

－ 16 －(Millions of yen)March 1, 2008 to
February 28, 2009

388
9,000
(3,983)-(343)
-(4)
5,056
(1)
132
4,215

12,523-(450)(787)(1,228)(5)-10,051
(28)
576
3,639

(761)

--

3,586

4,215

Material Items Forming the Basis for the Preparation of theConsolidated Financial Statements for Fiscal Year Ended February 28, 2010
Item
1.Items relating to
the scope of
consolidation

March 1, 2009 - February 28, 2010

March 1, 2008 - February 28, 2009

(1) Number of consolidated subsidiaries: 13
G-One Financial Services Co., Ltd.
G-Care Kyousaikai.
Gulliver Europe Ltd.
G-One Credit Services Co., Ltd.
G-Trading Co., Ltd.
G-Bus. Ltd.
Samurai Motors Co.
G-Trading Rus LLC(Change in scope of consolidation)
G-Rental Co., Ltd.
In consideration of the effects on the consolidated
Hucobo Co., Ltd.
financial statements following Group restructuring,
Takeoff Co., Ltd.
the following changes have been made to the
Gulliver USA, Inc.
scope of consolidation as of the end of the third
Gulliver East, Inc.
quarter of the consolidated fiscal year: Gulliver
Europe Ltd. has been removed from the scope of
consolidation and is accounted for by the equity
method, and Samurai Motors Co., G-Rental Co.,
Ltd., Takeoff Co., Ltd. and Gulliver East, Inc. havebeen removed from the scope of consolidation .
As a result, they will be consolidated only on theincome statement and cash flow statement.
Further, former consolidated subsidiary G-Bus.
Ltd. has merged with consolidated subsidiary
G-Trading Co., Ltd. on November 1, 2009.
(2) Main non-consolidated subsidiaries:(2) Main non-consolidated subsidiaries:
Carbross Co., Ltd.
Carbross Co., Ltd.
G One Insurance Service Co., Ltd.
G One Insurance Service Co., Ltd.
Gulliver India Co., Ltd.
Gulliver International Consulting (Shanghai) Co.,
Gulliver Auto True Co., Ltd.
Ltd.
Gulliver Europe Ltd.
Gulliver India Co., Ltd.
Samurai Motors Co.
Gulliver Auto True Co., Ltd.
G-Rental Co., Ltd.
G-Trading INDIA PVT. LTD
Takeoff Co., Ltd.
Gulliver East, Inc.
Reasons for exclusion from consolidation:
Reasons for exclusion from consolidation:
Non-consolidated subsidiary Carboss Co., Ltd.,
Non-consolidated subsidiary Carboss Co., Ltd., G
G One Insurance Service Co,. Ltd., Gulliver
One Insurance Service Co,. Ltd., Gulliver
India, Gulliver Auto True, Gulliver Europe Ltd.,International Consulting (Shanghai) Co., Ltd.,
G-Rental Co., Ltd., Takeoff Co., Ltd. and Gulliver Gulliver India, Gulliver Auto True are small and theirEast, Inc. are small and their total assets, sales,
total assets, sales, net income and retained profit (ornet income and retained profit (or the amounts
the amounts proportionate to our holdings in these
proportionate to our holdings in thesecompanies), do not significantly affect thecompanies), do not significantly affect theconsolidated financial statements.
consolidated financial statements.
(1) Number of consolidated subsidiaries: 6
G-One Financial Services Co., Ltd.
G-One Credit Services Co., Ltd.
G-Trading Co., Ltd.
G-Trading Rus LLC
Hucobo Co., Ltd.
Gulliver USA, Inc.

－ 17 －

Item
2. Application of theequity method

March 1, 2009 - February 28, 2010
Application of the equity method(1) Gulliver Europe Ltd.

Application of the equity method(1) There are no non-consolidated subsidiaries oraffiliates to which the equity method is applied.

(2) Non-consolidated subsidiaries and affiliates
to which the equity method is not applied:
UG Powers Co., Ltd.
Carbross Co., Ltd.
G One Insurance Service Co,. Ltd.
Gulliver International Consulting (Shanghai)Co., Ltd.
Gulliver India
Gulliver Auto True
Reasons for not applying the equity method:
As at right

3. Items relating to thesettlement days of
consolidated
subsidiaries

Of the consolidated subsidiaries, the following
have settlement date that differ from theconsolidated settlement date of the end of
February:(December 31)-G-Trading Rus LLC,
-Gulliver USA, Inc.
Since the gap between the Consolidated
Financial Statement settlement date for theabove 2 companies does not exceed 3 months,
consolidation is performed based on the said
subsidiary’s financial statements. For materialtransactions occurring between the settlement
dates, consolidation adjustments are made asnecessary.

4.

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

March 1, 2008 - February 28, 2009

1. Marketable securities
Bonds intended to be held to maturity:
As at right
Other marketable securities
As at right((2) Non-consolidated subsidiaries and affiliates towhich the equity method is not applied:
UG Powers Co., Ltd.
Carbross Co., Ltd.
G One Insurance Service Co,. Ltd.
Gulliver International Consulting (Shanghai) Co.,Ltd.
Gulliver India
Gulliver Auto True
G-Trading INDIA PVT. LTD
Reasons for not applying the equity method:
The effect of the company on net income andretained profit is immaterial and its overall
importance is low.
Of the consolidated subsidiaries, the following havesettlement date that differ from the consolidated
settlement date of the end of February:(December 31)-Gulliver Europe Ltd.
-Samurai Motors Co.
-G-Trading Rus LLC,
-Gulliver USA, Inc.
-Guiver East, Inc.
Since the gap between the Consolidated Financial
Statements settlement dates for the above 5companies does not exceed 3 months,
consolidation is performed based on the said
subsidiary’s financial statements. For materialtransactions occurring between the settlement
dates, consolidation adjustments are made asnecessary.
Gulliver USA Inc. and Gulliver East Inc. havechanged their financial statement settlement datefrom the end of February to December 31. Theirfinancial statements for the 10-month period to
December 31 were used in the creation of theconsolidated financial statements. For materialtransactions occurring between the settlement
dates, consolidation adjustments are made asnecessary.
1. Marketable securities
Bonds intended to be held to maturity:
Amortizing cost method (straight line)
Other marketable securitiesThose with a market price: Valued by themarket method based on the market price as at
the accounting date. Valuation gains or losses
are taken direct to net assets and the bookvalue is determined by moving averagemethod.
Those without a market value:Those without a market value:
As at rightThe cost method using the moving average method

Shareholdings in subsidiaries:
As at right

Shareholdings in subsidiaries:
The cost method using the moving average method－ 18 －

Item

March 1, 2009 - February 28, 2010

March 1, 2008 - February 28, 2009

3. Inventories

3. Inventories
Actual cost method employed (reduced book value A. Merchandise:
Vehicles: Actual cost method
method applied to items with low profitability)
A. Merchandise:
Vehicles: As at right
Other: As at right
B. Supplies:
Change to accounting method
As of the current consolidated fiscal year,
Financial Accounting Standards for Inventory
Valuation (ASBJ Article 9 July 5, 2006) will beapplied. The effect of this change is immaterial.
(i) Tangible Fixed Assets(2) Depreciation
As at rightmethods applied tomaterial depreciable
assets(i) Tangible Fixed Assets
Declining Balance Method is applied. However, forbuildings (excluding attached equipment) acquiredsince April 1, 1998, the StraightLine Method has been applied. The useful lives are
as follows:
Buildings and Structures: 15 – 20 years
Vehicles: 2-6 years---------------(Additional information)
Following the revision to the Corporate Tax Law,for tangible fixed assets acquired on or before
March 31, 2007, the balance of an amountequivalent to 5% of the acquisition value and thememorandum price is depreciated using thestraight line method and are recorded as
depreciation expenses for a period of five years,
starting in the consolidated fiscal year after the
fiscal year in which depreciation based on amethod stipulated in pre-revision Corporate Tax
Law reaches 5% of the acquisition value.
The effects of this change on operating income,ordinary income or net income before adjustment forincome taxes is immaterial.
(ii) Intangible Fixed Assets
The Straight Line Method is applied. However,with respect to software for internal use, theStraight Line Method based on useful lives forinternal use (5 years) has been applied.

(ii) Intangible Fixed Assets
As at right(3) Treatment ofdeferred assets

Other:First in first out method applied
B. Supplies:
Final cost method applied(iii) Long Term Prepaid Expenses
As at right
Share issue expenses
As at right(iii) Long Term Prepaid Expenses
The Straight Line Method is applied
Share issue expenses
Expensed in their entirety at the time of expenditure－ 19 －

(4) Criteria forrecordingmaterial
reserves(i) Reserve for Doubtful Accounts
As at right(i) Reserve for Doubtful Accounts
To prepare for the losses occurring from bad debts,
with respect to general claims the actual bad debt
to loan rate is applied. Specific claims, such as
those where there are concerns on the probabilityof recovery, are assessed on an individual basis
and estimated unrecoverable amounts arerecorded.
(ii) Reserve for Bonuses
To prepare for the payment of bonuses to
employees, amounts are recorded based on theestimated payment amount.

(ii) Reserve for Bonuses
As at right(iii) Reserve for Directors’ Bonuses
Amount based on forecasted provisional amountin preparation for payment of bonuses to directors.

－ 20 －

Item

March 1, 2009 - February 28, 2010

March 1, 2008 - February 28, 2009(iii) Reserve for Directors’
Retirement Benefit
In order to prepare for payments for the retirement
benefits for directors, the necessary allowanceamount as of the balance sheet date is
Accounted for in accordance with the rules forreserves for director’s retirement benefit.

As at right-----------------------(Change to accounting policies)
Previously, payments for retirement benefits for
directors were treated as expenses at time of
payment. However, as of the fiscal year ending
February 28, 2009, the required amount of
retirement benefits for directors at the end of theconsolidated period will be based on the retirement
benefits for directors’ rules and will be recorded as
reserve for directors’ retirement benefit.
This change follows the adoption of revisions to thetreatment for Auditing of Reserve under Special
Taxation Measures Law, Allowance or Reserve
under Special Laws (JICPA Audit and Assurance
Practice Committee Report No. 42) announced
April 13, 2007 by the JICPA.
In comparison with the former method, operating
income and ordinary income are ¥48 million lower
and net loss before taxes etc., increased ¥425
million as a result of this change.

(v) Merchandize Warranty Reserve
As at right(vi) Provision for subsidiaries’ losses
An estimated amount for losses has beenrecorded in order to prepare for losses fromsubsidiaries requiring capital deficit resolution
over the long-term in light of the financial
condition of applicable subsidiaries.

－ 21 －(v) Merchandize Warranty Reserve
In preparation for losses on repairs of cars withwarranties, estimated warranty amounts for the
warranty period are accounted for based on actual
prior results.
(Change to accounting policies)
Previously, warranty reserves were expensed at thetime of payment. However, as of the fiscal year
ending February 28, 2009, estimated future
warranty payments will be accounted for as themerchandize warranty reserve.
This change follows the application of revisions to
the treatment for Auditing of Reserve under Special
Taxation Measures Law, Allowance or Reserve
under Special Laws (JICPA Audit and Assurance
Practice Committee Report No. 42) announced
April 13, 2007 by the JICPA.
In comparison to the former method, operating
income and ordinary income are ¥104 million lower
and net loss before taxes, etc. increased ¥354 million
as a result of this change.

March 1, 2009 - February 28, 2010

March 1, 2008 - February 28, 2009

(5) Translation ofmajor currency
assets andliabilities
valuations heldby consolidated
companies andothers during theperiod underreview and forthe preparation of
the financial
report for theperiod underreview

As at right

Valuations of foreign bonds and monetaryliabilities are translated to Japanese yen using
the spot exchange rate on the date of settlement.
Differences are recorded as either a gain or loss.
Valuations of assets and liabilities of existing
subsidiaries and others are translated toJapanese yen using the spot exchange rate on
the date of settlement and revenues andexpenses are translated into Japanese yen using
an average spot rate for the period. Translationdifferences are recorded under net assets in theminority interests, and valuation and translation
adjustments sections.

(6) Treatment ofmaterial leasetransactions

As at right

Financing leases other than those lease assets
whose title is deemed to pass to the lessee
have been accounted for in accordance withmethods applied to normal lease transactions.

(7) Material hedge
accounting(i) Method of Hedge Accounting
As at right(i) Method of Hedge Accounting
According to Deferred Hedge Method.
However, special methods are employed forinterest rate swap transactions that meet
specifications for special methods.

(ii) Hedging Tools and Hedge Targets
As at right(ii) Hedging Tools and Hedge Targets
Hedging Tools – Interest Rate Swaps
Hedge Targets – Interest on borrowings(iii) Hedging Policy(iii) Hedging Policy
Interest Rate Swap transactions are enteredinto for the purpose of hedging the risk ofinterest rate fluctuation on borrowings andentered into only for the target obligations.

Item

As at right(iv) Method of evaluating hedge effectivenessAs at right(8) Other material
items in the
preparation of theconsolidated
financial statements

5.

Evaluation ofassets andliabilities of
consolidated
subsidiaries

Accounting treatment for consumption tax
As at right(iv) Method of evaluating hedge effectivenessEvaluations are based on the amount ofvolatility of hedging tools and hedge targets
compared to total market price volatility for theperiod from the time the hedge was initiateduntil the evaluation for effectiveness.
Accounting treatment for consumption tax
The Tax Exclusion Method is applied in theaccounting treatment of Consumption Tax.

As at rightMarket valuation method is fully applied.

－ 22 －

March 1, 2009 - February 28, 2010

March 1, 2008 - February 28, 2009

6. Amortization of
goodwill andnegative goodwill

As at right.

7. Assets in the scopeof consolidated
cash flows

As at right.

The period of amortization of goodwill andnegative goodwill will be based on a reasonableestimate of the period during which benefit will be
realized not exceeding 20 years.
Small amounts are written off in full in the fiscal
year in which they arise.
The category ‘cash’ covers cash on hand,demand deposits, and easily convertible
short-term investments with low risk of pricefluctuation that mature within three months ofacquisition.

Item

Changes in Accounting Treatment
March 1, 2009 - February 28, 2010

March 1, 2008 - February 28, 2009

Unification of accounting policies applied to foreignsubsidiaries and IFRS conversion.
As of the current consolidated fiscal year, the “Unificationof accounting policies applied to foreign subsidiaries and
IFRS conversion” issued May 17, 2006 by the Practical
Issues Task Force No. 18 will be applied. This will have noeffect on profits.

--------------－ 23 －

Accounting methods for auto loan revenues
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 insubrogation were excluded and revenues from auto loan
contracts were recorded as a lump sum. However, as of thecurrent 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 beentransferred to a trust subsidiary and trust beneficiary rights
and shares issued and sold as collateral assets. However, of
these securitized assets through, the part of the assets thatwere sold at book value and the parts that we continue tohold 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.
This change has been made in an effort to improve
allocation of revenues by accounting period and the overall
financial condition of the company and is the result of areview following an increase in the number of vehicles soldby Gulliver, an increase in the number of auto loans at
consolidated subsidiaries, and increase in number of auto
loan contracts accumulating, and a significant increase in theimportance of transactions related to loan revenues.
Further, accounting methods for contracts from previous year
have been revised to match the current accounting methods.
Following this change to the accounting method and incomparison to use of the previous accounting method, net
sales are ¥1,124 million lower, gross profit is ¥1,124 million
lower, operating income is ¥1,073 million lower, ordinary
income is ¥1,073 million lower and net income before taxes is¥2,208 million lower.

－ 24 －

Changes in Representation
March 1, 2009 - February 28, 2010

March 1, 2008 - February 28, 2009

(Consolidated Balance sheet)
In accordance with “Regulation for Terminology, Forms andPreparation of Financial Statements” (Cabinet Office Ordinance
No. 50, issues August 7, 2008), the item ‘inventory assets’,
used in the previous fiscal year will be separated into the items‘products’ and ‘other (merchandise).
The items ‘products’ and ‘merchandise’ included in ‘inventory
assets’ in the previous fiscal year were ¥8,111 million and ¥57
million respectively.

(Consolidated Balance sheet)
In the previous consolidated fiscal year negative goodwill
was included in long-term liabilities under ‘Other’, but fromthis fiscal year, as its importance has increased, it has
been separately disclosed. The amount of negative
goodwill in the previous consolidated fiscal year was 176
million yen.

(Consolidated Statements of Income)In the previous consolidated fiscal year amortization ofnegative goodwill was included in non-operating income
under ‘Other’, but from this fiscal year, as its importancehas increased, it has been separately disclosed. The
amount of amortization of negative goodwill in theprevious consolidated fiscal year was 12 million yen.
(Consolidated Statements of Cash Flows)
1. In the previous consolidated fiscal year amortizationof goodwill was included in cash flows from operating
activities under ‘Depreciation’, but from this fiscal year,
as its monetary importance has increased, it has been
separately disclosed. The amount of amortization of
goodwill included under ‘Depreciation’ in the previous
consolidated fiscal year was 22 million yen.
2. In the previous consolidated fiscal year amortizationof negative goodwill was included in cash flows fromoperating activities under ‘Other’, but from this fiscal
year, as its monetary importance has increased, it has
been separately disclosed. The amount of amortizationof negative goodwill included under ‘Other’ in theprevious consolidated fiscal year was 12 million yen.
3. In Cash Flows from Operating Activities the gain
(loss) on foreign exchange was included in ‘Other’ in theprevious fiscal year but as its monetary importance has
increased, it has been separately disclosed.
The amount of gain (loss) on foreign exchange includedin ‘Other’ in the previous fiscal year was 33 million yen.

－ 25 －

4. Segment Information
Segment information by business type
Fiscal year ended February 28, 2010 (March 1, 2009 to February 28, 2010)
Trading of

Financing

Other

used cars

businessbusiness(Millions of yen)

Elimination/

Total

Consolidated

All company

Sales(1) Sales to external

136,861

5,311

6,680

148,853--

148,853

1,745

1,455

2,739

5,940

(5,940)--138,607

6,767

9,419

154,793(5,940)148,853

Operating expenses

130,913

6,811

7,291

145,017(1,444)

143,572

Operating income

7,693

(44)

2,127

9,776

(4,495)

5,281

26,19732,572

1,558

60,328

7,619

67,948

1,017

81

197

1,296

355

1,651

1,260

421

116

1,797

363

2,161

customers(2) Inter-segmental sales ortransfers
Total

Assets, Depreciation andCapital Expenditure
AssetsDepreciation andamortization expense
Capital expenditureNotes:
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 through directly operated stores and the like.
Consolidated subsidiary G-One Financial Services Co., Ltd. provides financing services such as autoloans.

Other business

Provision of services for franchises relating to the management of Gulliver, for the sale and purchaseof cars, and stores established for the graphic sales systems.

3. Amount and principal content included in the “Elimination or Total Company” item

Amount of operating expense
which cannot be allocatedPrevious fiscal year

Current fiscal year

5,238

4,495

Amount of assets included in“Eliminations or Total(Millions of yen)
Principal content
Expenses relating to head officeadministration at the parent company
Assets, etc., related to management of

6,869

7,619

Company” item

surplus funds and head officeadministration at the parent company－ 26 －

Segment information by business type
Fiscal year ended February 28, 2009 (March 1, 2008 to February 28, 2009)
Trading of

Financing

Other

used cars

businessbusiness(Millions of yen)

Elimination/

Total

Consolidated

All company

Sales(2) Sales to external

150,959

5,032

7,677

163,669―

163,669

3,339

1,427

3,467

8,234

△8,234―

154,298

6,460

11,144

171,903△8,234

163,669

Operating expenses

147,759

6,357

8,642

162,759△2,995

159,764

Operating income

6,538

103

2,502

9,144

△5,238

3,905

26,78523,343

1,774

51,903

6,869

58,773

335

79

--

--

--

414

1,688

148

231

2,069

316

2,385

2,355

149

234

2,739

122

2,861

customers(2) Inter-segmental sales ortransfers
Total

Assets, Depreciation andCapital Expenditure
AssetsImpairment losses
Depreciation andamortization expense
Capital expenditureNotes:
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 through directly operated stores and the like.
Consolidated subsidiary G-One Financial Services Co., Ltd. provides financing services such as autoloans.

Other business

Provision of services for franchises relating to the management of Gulliver, for the sale and purchaseof cars, and stores established for the graphic sales systems.

3. Amount and principal content included in the “Elimination or Total Company” item

Amount of operating expense
which cannot be allocatedPrevious fiscal year

Current fiscal year

5,543

5,238

6,889

6,869

Amount of assets included in“Eliminations or Total(Millions of yen)
Principal content
Expenses relating to head officeadministration at the parent company
Assets, etc., related to management ofCompany” item

surplus funds and head officeadministration at the parent company

Segment information by geographical location
For the current fiscal year and for the previous fiscal year over 90% of total consolidated sales and assets for each segment were in Japanso segment information by geographical location has been omitted.

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

－ 27 －

Per share information
FY EndedFebruary 28, 2010
Net assets per share¥1,794.18

Net earnings per share
There are no shares with a potentiallydilutive effect and therefore figures for fully
diluted earnings per share are not provided¥38.29FY endedFebruary 28, 2009
Net assets per share¥1,704.02

Net income per share(¥300.38)

Due to a net loss, figures for fully diluted earnings per
share are not provided

Note: The basis for the calculation of net income (loss) per share and the net income per share after adjustment for residual
securities is as follows:
FY EndedFebruary 28, 2010
Net income (loss) (¥ million)
Net income (loss) attributable to common shares(¥ million)
Amount not attributable to common shareholders(¥ million)
Average number of outstanding common shares
during the year (1,000 shares)
Breakdown of additional common shares used for
calculating net income per share (diluted) (1,000
shares)Increase in number of common shares (1,000
shares)Residual securities not included in the calculationof the net income after adjustment for residual
securities due to the fact that these securities had
no dilutive effect.

348

FY endedFebruary 28, 2009
(2,836)348(2,836)

--

--

9,106

9,441

--

--

--

--

2 types of subscription rights:
Number of residual securities
from subscription rights:
47,000 shares

2 types of subscription rights:
Number of residual securities
from subscription rights:
49,000 shares－ 28 －

Non-Consolidated Balance Sheets(Millions of yen)
As of February 28, 2010

As of February 28, 2009ASSETS
Current assets
Cash and deposits .................................

3,248

1,811

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

3,123

2,899

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

9,450

6,016

Merchandise ..........................................
Prepaid expenses ..................................

118

44

542

553

Accrued credit ........................................

34

359

Advances paid .......................................

336

101

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

826

405

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

0

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

(16)

0
(4)

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

17,664

12,188Fixed assets
Tangible fixed assets
Buildings ................................................

8,312

8,841

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

(2,398)(2,318)

Buildings (net) ....................................

5,914

6,522

Structures ..............................................

1,853

1,905

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

(918)

(838)

Structures (net)...................................

935

1,067

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

299

--

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

(33)

--

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

265

--

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

2,144

2,644

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

(1,547)(1,847)

Tools, fixtures and equipment (net) ....

597

796

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

218

409

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

270

67

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

8,201

8,863

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

48

71

Trademarks............................................

1

6

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

909

1,285

Telephone subscription rights ................

15

63

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

0--

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

974

1,426

－ 29 －

(Millions of yen)
As of February 28, 2010

As of February 28, 2009

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

14

118

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

2,021

2,901

Investments ...........................................

00Long-term loans to affiliates...................

25,916

12,983

1

Defaulted claims, etc .............................

50

127

Long-term prepaid expenses .................

36

11

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

2,709

3,537

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

2,955

2,530

Insurance reserves ................................

90

86

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

111

164

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

(2,898)(631)

Total investments and other assets....

31,00821,829Total fixed assets ...............................

40,184

32,119Total Assets............................................

57,84844,307－ 30 －

(Millions of yen)
As of February 28, 2010

As of February 28, 2009

LIABILITIESCurrent liabilities
Accounts payable ..........................................

3,529

2,274

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

21,033

18,133

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

1,466

1,484

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

1,481

45

Accrued consumption taxes...........................

232

151

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

756

899

Advances received ........................................

877

912

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

165

96

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

476

472

Reserve for merchandize warranty................

757

354

Accrued expenses for facilities ......................

49

82

Income in advance ........................................

250

--

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

28

42

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

31,10424,948Long-term liabilities
Long-term borrowing .....................................

8,516

49

Long-term guarantee deposits received ........

800

825

Reserve for directors’ retirement benefit .......

405

425

Reserve for loss from subsidiaries ................

15

2,794

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

9,739

4,095

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

40,84329,044

4,157

4,157

Capital reserves .........................................

4,032

4,032

Other capital surplus ..................................

--

--

4,032

4,032

39

39

Earned surplus brought forward ...............

19,95418,508

Total retained profit

19,993

18,547

Treasury stock ...............................................

(11,178)(11,465)

NET ASSETS
Shareholders’ equity
Paid in capital ................................................
Capital surplus

Total capital surplus
Retained profit
Earned Surplus Reserve ............................
Other retained profit

Total shareholders’ equity .......................

17,005

15,271

Valuation difference on other marketablesecurities ..................................................

--

(8)

Total Valuation and translation differences ...

--

(8)

Total net assets................................................

17,005

15,263

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

57,84844,307－ 31 －

Non-Consolidated Statements of Income
March 1, 2009 to
February 28, 2010
Sales
Merchandise sales......................................................
Sales of other goods...................................................
Total sales ..............................................................
Cost of sales
Cost of merchandise soldInventory at start of period ..........................................
Purchases during the year..........................................
Total ....................................................................
Inventory at end of term ............................................
Other transfers............................................................
Net: cost of goods sold ...............................................
Other operating revenues cost of goods sold .............
Total cost of sales of other goods........................
Gross profit on sales...................................................
Sales, general and administrative expenses
Advertising..................................................................
Directors’ remuneration ..............................................
Salaries ......................................................................
Bonuses .....................................................................
Addition to reserve for bonuses ................................
Addition to reserve for directors’ bonuses ..................
Statutory welfare expenses ........................................
Contracting fees .........................................................
Travel and transportation............................................
Communication expense ............................................
Consumables..............................................................
Depreciation ...............................................................
Rent ..........................................................................
Land rent ....................................................................
Provision for directors’ retirement benefit ...................
Other ..........................................................................
Total sales, general and administrative expenses ..
Operating income...........................................................
Non-operating income
Interest income ...........................................................
Dividends income .......................................................
Insurance income ....................................................
Other ..........................................................................
Total non-operating income ....................................
Total extraordinary profit.............................................
Non-operating expenses
Interest expense .........................................................
Addition to allowance for doubtful...............................
Other ..........................................................................
Total non-operating expenses.................................
Ordinary income .........................................................

－ 32 －(Millions of yen)March 1, 2008 to
February 28, 2009

132,999
3,406
136,406

132,9636,609
139,572

6,016
104,959
110,975
9,450
417
101,108
1,032
102,140
34,266

3,628
105,849
109,478
6,016
60
103,401
975
104,376
35,195

5,325
230
7,406
1,393
476
24
1,239
2,134
810
602
429
1,541
141
4,479
44
2,745
29,024
5,241

4,747
275
8,089
1,246
472
-1,247
2,247
1,013
706
361
2,125
168
4,541
48
3,575
30,868
4,327

156
-25
64
246

90
8
25
116
240

118
-14
132
5,355

106
371
107
585
3,983

March 1, 2009 to
February 28, 2010

(Millions of yen)March 1, 2008 to
February 28, 2009

Extraordinary profit
Gain from prior period profit revision ..........................

91--

Gain from sale of fixed assets ....................................

10--

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

90--

Reversal of allowance for doubtful receivables .........

78--

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

0--

Total extraordinary profit.............................................

272

--

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

932

456

Evaluation loss on shares in affiliates ....................

248

378

Provision for reserve for directors’ retirement
benefit for prior years ........................................

--

376

Provision for merchandize warranty reserve forprior years ..........................................................

--

249

Provisions for reserve for loss from subsidiaries ..

15

2,794

Provision for doubtful accounts ..............................

484

--

Loss from prior period profit revision ......................

224

--

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

19

89

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

1,925

4,345

Income (loss) before taxes, etc. .............................

3,701

(362)

Income tax, inhabitants tax and enterprise tax.......

2,234

1,708

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

(373)

Total corporate taxes .............................................

1,861

22
1,731

Net income (loss) ....................................................

1,840(2,093)－ 33 －

Changes in Non-Consolidated Shareholders’ Equity
Millions of yen, rounded down
Fiscal year ended
February 28, 2010
Shareholders’ equity
CapitalBalance at end of previous term.........................................
Changes during the period
Total change during the period .......................................
Balance at end of term........................................................
Capital surplus
Capital reserves
Balance at end of previous term.........................................
Changes during the period
Total change during the period.......................................
Balance at end of term .......................................................
Other capital surplus
Balance at end of previous term.........................................
Changes during the period
Disposal of treasury stock...............................................
Exchange loss on disposal of treasury stock ..................
Total change during the period.......................................
Balance at end of term .......................................................
Total capital surplus
Balance at end of previous term.........................................
Changes during the period
Disposal of treasury stock...............................................
Exchange loss on disposal of treasury stock ..................
Total change during the period.......................................
Balance at end of term .......................................................
Retained profit
Earned Surplus Reserve
Balance at end of previous term.........................................
Changes during the period
Total change during the period.......................................
Balance at end of term .......................................................
Other retained profit
Earned surplus brought forward
Balance at end of previous term.........................................
Changes during the period
Dividends ........................................................................
Exchange loss on disposal of treasury stock ..................
Net income (loss) ............................................................
Total change during the period.......................................
Balance at end of term.......................................................
Total Retained profit
Balance at end of previous term.........................................
Changes during the period
Dividends ........................................................................
Exchange loss on disposal of treasury stock ..................
Net income (loss) ............................................................
Total change during the period.......................................
Balance at end of term.......................................................

－ 34 －

Fiscal year ended
February 28, 2009

4,157

4,157

-4,157-4,157

4,032

4,032

-4,032-4,032

(48)
48
---

-----

4,032

4,032

(48)
48
-4,032---4,032

39

39

-39

-39

18,50821,830

(345)
(48)
1,840
1,446
19,954(1,228)-(2,093)(3,322)
18,50818,547

21,869

(345)
(48)
1,840
1,446
19,993(1,228)-(2,093)(3,322)
18,547

Changes in Non-Consolidated Shareholders’ Equity (continued)
Millions of yen, rounded down
Fiscal year ended
February 28, 2010
Treasury stock
Balance at end of previous term ........................................
Changes during the period
Acquisition of treasury stock...........................................
Disposal of treasury stock ..............................................
Total change during the period.......................................
Balance at end of previous term ........................................
Total shareholders’ equity
Balance at end of previous term ........................................
Changes during the period
Dividend .........................................................................
Net income (loss) ...........................................................
Acquisition of treasury stock...........................................
Disposal of treasury stock ..............................................
Total change during the period........................................
Balance at end of previous term.........................................
Valuation differences due to foreign exchange
Valuation differences on other marketable securities
Balance at end of previous term ........................................
Changes during the period
Changes to items other than shareholders’ equity
during the period (net) ....................................................
Total change during the period.......................................
Balance at end of term.......................................................
Total valuation and translation differences
Balance at end of previous term.....................................
Changes during the period
Changes to items other than shareholders’ equity
during the period (net) ....................................................
Total change during the period.......................................
Balance at end of term .......................................................
Net assets
Balance at end of previous term ........................................
Changes during the period
Surplus dividend..............................................................
Net income (loss) ...........................................................
Acquisition of treasury stock...........................................
Disposal of treasury stock ..............................................
Changes to items other than shareholders’ equity
during the period ............................................................
Total change during the period ..........................................
Balance at end of term .......................................................

－ 35 －

Fiscal year ended
February 28, 2009

(11,465)(10,678)

(4)
291
287
(11,178)

(787)
-787
(11,465)

15,271

19,381

(345)
1,840
(4)
243
1,733
17,005(1,228)(2,093)(787)-(4,109)15,271

(8)

7

8

(16)

8
-

(16)
(8)

(8)

7

8

(16)

8
-

(16)
(8)

15,263

19,389

(345)
1,840
(4)
243

(1,228)(2,093)
(787)
--

8

(16)

1,741
17,005(4,125)
15,263