Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended February 28, 2014
(Based on Japanese GAAP)
April 11, 2014
Company name:

Gulliver International Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
7599
Representative:
Inquiries:

URL http://221616.com

ChairmanAccounting and Finance Section Manager

Kenichi Hatori
Masayuki Matsumoto

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

May 29, 2014
May 30, 2014

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

May 30, 2014
Yes

Holding of financial results meeting:

Yes

TEL

03-5208-5503(for analysts and institutional investors)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended February 28, 2014 (from March 1, 2013 to February 28, 2014)(1) Consolidated financial results
Percentages indicate year-on-year changes
Net salesYear ended February 28, 2014
Year ended February 28, 2013

Millions of yen
169,398
143,417

Operating income
%
18.1
7.9

Millions of yen
7,094
5,077

Diluted net income
per share
Yen
Yen
43.01
43.00
29.41
29.41

Net income per share
Year ended February 28, 2014
Year ended February 28, 2013

Ordinary income% Millions of yen
39.7
7,201
(18.8)
5,252

Net income% Millions of yen
37.1
4,360
(16.9)
2,980

Ordinary
income/total assets
%
%
14.0
13.6
10.5
9.7

Net income/equity%
46.3(21.3)

Operatingincome/Net sales
%
4.2
3.5

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen
52,77953,253

Millions of yen
32,84629,451

Cash flows fromoperating activities
Millions of yen
10,061
3,064

Cash flows frominvesting activities
Millions of yen
3,734(1,348)

As of February 28, 2014
As of February 28, 2013

Net assets per share
%
62.2
55.3

Yen
323.99290.50(3) Consolidated cash flows

Year ended February 28, 2014
Year ended February 28, 2013

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(5,981)
14,661(2,830)6,836

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

Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

Year ended February 28, 2013
Year ended February 28, 2014

–
–

41.00
5.00

–
–

47.00
8.00

88.00
13.00

892
1,317

29.9
30.2

3.1
4.2

Year ending February 28, 2015 (Forecast)

–

7.50

–

7.50

15.00

1

29.8

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

Net sales
Millions of yen
Six months ending
August 31, 2014
Full year

Percentages indicate year-on-year changes
Net income
Operating income
Ordinary income
Net income
per share% Millions of yen% Millions of yen% Millions of yen%
Yen

80,200

(3.8)

3,200

(10.0)

3,200(12.5)

1,900(17.3)

18.74

173,000

2.1

8,500

19.8

8,500

18.0

5,100

17.0

50.31

4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2014(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
Yes

Restatement of prior period financial statements after error corrections:No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 2014

106,888,000 shares As of February 28, 2013

106,888,000 shares

Number of treasury shares at the end of the period
As of February 28, 2014

5,520,070 shares As of February 28, 2013

5,519,770 shares

101,368,184 shares Year ended February 28, 2013

101,368,310 shares

Average number of shares during the period
Year ended February 28, 2014

2

1.

Operating results(1) Analysis of consolidated operating results
In the fiscal year under review, total retail sales volume of cars over the whole financial year amounted to approximately 50,000, a record since
the founding of Gulliver. Contributory factors included development of personnel at existing Gulliver stores that have been strengthened inrecent years, and the fact that Gulliver has been opening sales stores in new retail channels and that the large-scale showrooms WOW! TOWN
were operating throughout the fiscal year under review. Furthermore, used vehicle purchases at all Gulliver-directly operated stores surpassed
initial assumptions due to an increase in customers visiting stores in conjunction with the higher retail sales volume.
While we limited PR and advertising costs, selling, general and administrative (SG&A) expenses saw an increase in expenses related to store
operations, accompanying an increased number of Gulliver-directly operated stores.
Outlook for the fiscal year ending February 28, 2015
Gulliver will continue to focus on the retail sales of used cars. Gulliver will continue to conduct thorough staff training and will accelerate theopening of sales stores in the actively expanding new retail channels. As a result of these actions, we expect the total retail sales volume of cars
retailed via all Gulliver-directly operated stores to increase in the fiscal year ending February 28, 2015.
We expect variations in the performance of our consolidated subsidiaries to be negligible.
With the above in mind, as the outlook for the full fiscal year, we expect consolidated net sales of 173,000 million yen (up 2.1% from the fiscal
year under review), operating income of 8,500 million yen (up 19.8% from the fiscal year under review), ordinary income of 8,500 million yen(up 18.0% from the fiscal year under review) and net income of 5,100 million yen (up 17.0% from the fiscal year under review).
(2) Analysis of financial position[Assets, liabilities and net assets]
AssetsTotal assets as of February 28, 2014 were 52,779 million yen, a decrease of 0.9% from February 28, 2013.
Current assets were 33,463 million yen, up 13.2% from the same date. The primary contributing factor was an increase in cash and deposits,
partly offset by decreases in merchandise and notes and accounts receivable-trade.
Total noncurrent assets as of February 28, 2014 decreased by 18.5% from February 28, 2013, to 19,316 million yen. This mainly reflected adecrease in long-term loans receivable.
Of the total amount of accounts receivable-trade, the accounts receivable (financial credit) of consolidated subsidiary G-One Financial Services
Co., Ltd. stood at 3,594 million yen.
Liabilities
Total liabilities as of February 28, 2014 decreased by 16.3% from February 28, 2013 to 19,933 million yen.
Current liabilities as of February 28, 2014 decreased by 22.1% from February 28, 2013 to 13,525 million yen mainly due to a decrease inaccounts payable-trade and short-term loans payable.
Total noncurrent liabilities as of February 28, 2014 decreased by 0.6% from February 28, 2013 to 6,407 million yen.
Net assets
Net assets as of February 28, 2014 increased by 11.5% from February 28, 2013 to 32,846 million yen, mainly due to an increase in retained
earnings accompanying the posting of net income.

3

[Cash flow position]
For the current consolidated account period, the cash flow from operating activities and investment activities was positive. Overall cash flow
was a positive 7,824 million yen.
The balance of cash and cash equivalents at the end of the current consolidated account period was 14,661 million yen.
(Cash flow from operating activities)
Cash and cash equivalents generated from operating activities (hereinafter referred to as “cash”) was 10,061 million yen.
This primarily included net income before adjustment for taxes of 7,071 million yen, a 2,545 million yen decrease in accounts receivable and a
942 million yen decrease in inventory assets.
(Cash flow from investment activities)
The cash generated for investing activities was 3,734 million yen. This was mainly to cover the expenses for the purchase of tangible fixed
assets and collect Long-term loans receivable.
(Cash flow from financing activities)
Net cash used in financing activities was 5,981 million yen, largely the result of outflows for the repayment of loans.
Trends in shareholders’ equity and cash flow indicators are as follows:
FY 2010

FY 2011

FY 2012FY 2013

FY 2014

Equity ratio (%)

24.1

41.6

49.9

55.3

62.2

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

44.2

61.4

58.7

73.3

150.4

Debt redemption years

--

1.4

1.0

2.9

0.4

Interest coverage ratio

--

80.8

66.7

31.2

157.7

Notes:
1. Breakdown of each indicator
Equity ratio = shareholders’ equity/total assets
Shareholders’ equity (market price base) ratio = Market capitalization/Total assets
Debt redemption years = Interest bearing debt/Operating cash flow
Interest coverage ratio = Operating cash flow/Interest payments
2. Each index is calculated from consolidated figures
3. Market capitalization is calculated using the formula: closing share price at period end x number of shares issued (excluding treasury stock).
(3) Basic policy concerning distribution of profit and dividend for current and next term
We have identified the return of profit to investors as a key management issue and also emphasize our dividend payout ratio. We are focusedon ensuring the performance-based return of profit. In specific terms, we are targeting a dividend payout ratio of about 30% of consolidated
current net income.
Given the above basic policy and target, our expected dividends may be amended if the consolidated net income is not as expected.
We would like to set the cash dividend per share of the current term, based on the above, as 13 yen on a yearly basis (5 yen at the end of thesecond quarter, 8 yen at the end of the year).
In accordance with the above policies and targets, assuming consolidated net income of 5,100 million yen, we plan a cash dividend per sharefor the next term of 15 yen on a yearly basis (7.5 yen at the end of the second quarter, 7.5 yen at the end of the year).

4Consolidated financial statements
Consolidated balance sheets
As of February 28, 2013

(Millions of yen)
As of February 28, 2014

6,863
9,614
10,380
965
1,792
(61)
29,555

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

13,757(4,937)
8,820
232
(156)
76
2,379
(1,925)
454
218
40
9,609

15,586(5,605)
9,981
215
(185)
30
2,740
(2,165)575
218
184
10,989

926
16
942

993
17
1,011

14
361
6,558
3,065
2,758
249
250
(111)
13,146
23,69853,253

3
435
251
3,319
2,812
253
302
(62)
7,315
19,316
52,779AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Merchandise
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non–current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long–term loans receivable
Lease and guarantee deposits
Construction assistance fund receivables
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non–current assets
Total assets

5

As of February 28, 2013

(Millions of yen)
As of February 28, 2014

3,439
5,000
1,829
579
264
464
1,508
4,270
17,357

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

4,000
772
493
1,129

4,000
741
474
1,191

50

–

6,445
23,802

6,407
19,933

4,157
4,032
25,171(3,975)29,385

4,157
4,032
28,548(3,975)32,76162
62
3
29,451
53,2538080
432,846
52,779Liabilities
Current liabilities
Accounts payable – trade
Short–term loans payable
Accounts payable – other
Income taxes payable
Deposits received
Provision for bonuses
Provision for merchandise warranties
Other
Total current liabilities
Non–current liabilities
Long–term loans payable
Long–term guarantee deposited
Provision for directors' retirement benefits
Asset retirement obligations
Provision for loss on business of subsidiaries andassociates
Total non–current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets

6

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
Fiscal year ended
February 28, 2013
February 28, 2014
Net sales
143,417
169,398
Cost of sales
109,527
132,843
Gross profit
33,88936,554
Selling, general and administrative expenses
28,812
29,460Operating income
5,077
7,094
Non–operating income
Interest income
123
64
Reimbursement claims
2
19
Foreign exchange gains
12
11
Reversal of allowance for doubtful accounts–
52
Share of profit of entities accounted for using equity
10–
method
www
66
11
Other
69
22
Total non–operating income
285
181
Non–operating expenses
Interest expenses
98
63
Other
12
10
Total non–operating expenses
11074
Ordinary income
5,252
7,201
Extraordinary income
Compensation income
6–
Reversal of provision for loss on business of–50
subsidiaries and associates
Other
0
0
Total extraordinary income
650
Extraordinary losses
Loss on retirement of non–current assets
67
99
Impairment loss–
52
Provision for loss on business of subsidiaries and13–
associates
Other
5
27
Total extraordinary losses
86
180
Income before income taxes and minority interests
5,172
7,071
Income taxes – current
1,855
2,961
Income taxes – deferred
336
(249)
Total income taxes
2,191
2,711
Income before minority interests
2,980
4,360
Net income
2,980
4,360

7

Consolidated statements of comprehensive income (cumulative)

Income before minority interests
Other comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent8

Fiscal year ended
February 28, 2013
2,980

(Millions of yen)
Fiscal year ended
February 28, 2014
4,360

8
8
2,989

17
17
4,377

2,989

4,377

Consolidated statements of changes in net assets
Fiscal year ended February 28, 2013
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current period

Capital surplus

4,157

Retained earnings

4,032

Total shareholders'equityTreasury shares

23,021(3,975)27,235

Changes of items during period
Dividends of surplus

(831)

(831)

Net income

2,980

2,980

Purchase of treasury shares

(0)

(0)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

–

–

2,149

(0)

2,149

4,157

4,032

25,171(3,975)29,385

Accumulated other comprehensive income
Foreign currencytranslation adjustment
Balance at beginning of current period

Subscription rights tosharesTotal accumulated othercomprehensive income

54

54

Total net assets

2

27,292

Changes of items during period
Dividends of surplus(831)

Net income

2,980

Purchase of treasury shares(0)

Net changes of items other thanshareholders' equity

8

8

1

9

Total changes of items during period

8

8

1

2,159

Balance at end of current period

62

62

3

29,451

9

Fiscal year ended February 28, 2014
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current period

Capital surplus

4,157

Retained earnings

4,032

Total shareholders'equityTreasury shares

25,171(3,975)29,385

Changes of items during period
Dividends of surplus

(983)

(983)

Net income

4,360

4,360

Purchase of treasury shares

(0)

(0)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

–

–

3,376

(0)

3,376

4,157

4,032

28,548(3,975)32,761

Accumulated other comprehensive income
Foreign currencytranslation adjustment
Balance at beginning of current period

Subscription rights tosharesTotal accumulated othercomprehensive income

62

62

Total net assets

3

29,451

Changes of items during period
Dividends of surplus(983)

Net income

4,360

Purchase of treasury shares(0)

Net changes of items other thanshareholders' equity

17

17

1

18

Total changes of items during period

17

17

1

3,395

Balance at end of current period

80

80

4

32,846

10

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
February 28, 2014

Fiscal year ended
February 28, 2013
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for merchandise
warranties
Increase (decrease) in provision for directors'
retirement benefits
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of non–current assets
Impairment loss
Decrease (increase) in notes and accounts receivable– tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable –trade
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Payments of loans receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Payments of construction assistance fund receivables
Collection of construction assistance fundreceivables
Proceeds from withdrawal of time deposits
Purchase of shares of subsidiaries and associates
Proceeds from liquidation of subsidiaries
Other, net
Net cash provided by (used in) investing activities

11

5,172
1,185
5
(25)

7,071
1,354
0
(24)

(546)

(52)

(301)

308

31

(18)

(124)
98
(12)
67
–

(64)
63
(11)
99
52

1,722

2,545

(1,753)

942

523

(592)

(8)
288
6,324
558
(98)
(3,720)
3,064

352
(544)
11,48364(63)(1,422)
10,061(2,060)
(413)
(22)
(166)
906
(233)

(2,481)
(426)
(15)
(120)
7,204
(352)

91

100

(178)

(334)

238

237

500
–
–
(10)
(1,348)

–
(325)
246
1
3,734

(Millions of yen)
Fiscal year ended
February 28, 2014

Fiscal year ended
February 28, 2013
Cash flows from financing activities
Repayments of long–term loans payable
Purchase of treasury shares
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

12(2,000)(0)(830)(2,830)(5,000)(0)(981)(5,981)

5

10(1,109)
7,945
6,836

7,824
6,836
14,661

(Changes in Accounting Policies)(Changes in accounting policies that are difficult to distinguish from changes in accounting estimate)
Following the revision of the Corporation Tax Act, from the year ended February 28, 2014, Gulliver changed to applying a depreciation
method based on the revised Corporation Tax Act to property, plant and equipment acquired since March 1, 2013.
The impact on the consolidated financial statements for the fiscal year under review as a result of this change is minimal.
(Changes in Method of Presentation)(Consolidated Statements of Income)From the fiscal year under review, “Compensation income,” which had been included in “Other” under “Non-operating income” in theprevious fiscal year, has been stated as a separate item in the consolidated financial statements because its monetary amount exceeded ten percentof the total amount of “Non-operating income.” In order to reflect this change in the method of presentation, “Compensation income” has been
reclassified in the consolidated financial statements for the previous fiscal year.
As a result of the change, the 72 million yen of “Other” under “Non-operating income” in the consolidated statements of income for theprevious fiscal year was reclassified as 2 million yen of “Compensation income” and 69 million yen of “Other.”(Change in the method of presentation in the Consolidated Statements of Income)In the fiscal year under review, the Gulliver Group reported an impairment loss for the following asset groups. Note that this does not apply tothe previous fiscal year.
Fiscal year ended February 28, 2014
PurposeType
Location
Sales store
Building, etc.
Kansai region and elsewhere
In principle, the Gulliver Group groups its operating assets by sales store. In the fiscal year under review, the book value of sales store businessassets whose profitability had declined was written down to the recoverable value of these assets, and the difference was reported as a special
loss as an impairment loss of 52 million yen. This figure breaks down as 50 million yen for “Buildings and structures” and 2 million yen for“Tools, furniture and fixtures.” The recoverable value of this asset group is estimated from the value in use based on future cash flows. A value
in use that is negative indicates that the recoverable value has been evaluated as 0 yen.

13

Non-consolidated financial statements
Non-consolidated balance sheets
As of February 28, 2013

(Millions of yen)
As of February 28, 2014

6,493
2,863
10,341
88
538
986
777
450
(162)
22,376

13,970
3,554
9,348
122
561
1,233
17
475
(139)
29,144

11,350(3,644)7,705
2,400(1,291)
1,109
228
(154)
74
2,375
(1,924)
450
218
37
9,597

12,952(4,159)8,792
2,626(1,441)
1,185
211
(182)
29
2,734
(2,163)571
218
184
10,980

–
1
925
14
940

1
1
990
14
1,007

AssetsCurrent assets
Cash and deposits
Accounts receivable – trade
Merchandise
Supplies
Prepaid expenses
Deferred tax assets
Short–term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non–current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Trademark right
Software
Other
Total intangible assets

14

As of February 28, 2013

(Millions of yen)
As of February 28, 2014

14
2,028
6,411

3
2,301
1

3,329

979

61

61

75
3,058
2,758
246
111
(94)
17,99928,53750,914

121
3,311
2,812
253
119
(63)
9,903
21,891
51,035

3,405
5,000
1,194
527
87
812
2,549
263
464
1,508
76
398
19
16,307

2,836
–
1,593
2,061
425
847
2,632
98
440
1,817
149
281
13
13,197

4,000
772
493
1,129
6,395
22,702

4,000
741
474
1,191
6,407
19,605Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long–term loans receivable
Long–term loans receivable from subsidiaries
and associates
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long–term prepaid expenses
Lease and guarantee deposits
Construction assistance fund receivables
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non–current assets
Total assets
Liabilities
Current liabilities
Accounts payable – trade
Short–term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Accrued expenses
Advances received
Deposits received
Provision for bonuses
Provision for merchandise warranties
Accounts payable – facilities
Unearned revenue
Other
Total current liabilities
Non–current liabilities
Long–term loans payable
Long–term guarantee deposited
Provision for directors' retirement benefits
Asset retirement obligations
Total non–current liabilities
Total liabilities15

As of February 28, 2013

(Millions of yen)
As of February 28, 2014

4,157

4,157

4,032
4,032

4,032
4,032

39

39

23,95423,994(3,975)28,208
3
28,21150,914

27,172
27,212(3,975)31,425
4
31,43051,035

Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Total capital surpluses
Retained earnings
Legal retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Subscription rights to shares
Total net assets
Total liabilities and net assets

16Non-consolidated statements of income(Millions of yen)
Fiscal year ended
February 28, 2014

Fiscal year ended
February 28, 2013
Net sales
Net sales of goods
Other operating revenue
Total net sales
Cost of sales
Cost of goods soldBeginning goods
Cost of purchased goods
Total
Ending goods
Transfer to other account
Cost of goods soldsss
Total cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Directors' compensations
Salaries and allowances
Bonuses
Provision for bonuses
Legal welfare expenses
ddd
Traveling and transportation expenses
Communication expenses
Supplies expenses
Depreciation
Rent expenses
Rents
Provision for directors' retirement benefits
Provision of allowance for doubtful accounts
Other
Total selling, general and administrative expenses
Operating income
Non–operating income
Interest income
Reimbursement claims
wwwReversal of allowance for doubtful accounts
Other
Total non–operating income

17

136,097
5,962
142,060

161,846
6,189
168,036

8,615
109,823
118,438
10,341
62
108,034
736
108,770
33,29010,341
130,201
140,543
9,348
58
131,136863
132,000
36,036

5,113
165
7,758
1,391
442
1,333
1,212
1,059
606
432
1,187
167
4,695
31
13
2,877
28,491
4,798

4,924
183
7,921
1,345
422
1,427
1,148
1,156
580
499
1,349
190
4,938
32
–
3,039
29,161
6,874

151
2
66
–
52
273

80
19
11
53
20
185

(Millions of yen)
Fiscal year ended
February 28, 2014

Fiscal year ended
February 28, 2013
Non–operating expenses
Interest expenses
Other
Total non–operating expenses
Ordinary income
Extraordinary income
Compensation income
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non–current assets
Impairment loss
Other
Total extraordinary losses
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income

18

98
7
106
4,966

63
8
71
6,987

6
0
6

–
0
0

67
–
1
68
4,904
1,766
303
2,069
2,834

99
52
24
177
6,810
2,864
(254)
2,609
4,200

Non-consolidated statements of changes in net assets
Fiscal year ended February 28, 2013
(Millions of yen)
Shareholders' equity
Capital surplus

Capitalstock

Retained earnings
Otherretainedearnings

Subscription
Totalrights to

Total net
assetsTotal
retainedearnings

Treasuryshares21,951

21,990(3,975)

Dividends of surplus

(831)

(831)

(831)

(831)

Net income

2,834

2,834

2,834

2,834

(0)

(0)

Balance at beginning ofcurrent period

Legalcapitalsurplus

4,157

Total
capitalsurplus

4,032

Legal
retainedearnings

4,032

Retainedearnings
brought
forward

39

shareholders'sharesequity26,2042

26,206

Changes of items during
periodPurchase of treasury
shares(0)

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

1

1

–

–

–

–

2,003

2,003

(0)

2,003

1

2,004

4,157

4,032

4,032

39

23,95423,994(3,975)28,208

3

28,211

Fiscal year ended February 28, 2014
(Millions of yen)
Shareholders' equity
Capital surplus

Capitalstock

Balance at beginning ofcurrent period

Legalcapitalsurplus

4,157

Retained earnings

Total
capitalsurplus

4,032

Other
retainedearnings

Legalretainedearnings

4,032

Retainedearnings
brought
forward39

23,954

Subscription

Total
retainedearnings

Treasuryshares23,994(3,975)

Total

rights toshareholders'sharesTotal net
assetsequity28,208

3

28,211

Changes of items during
periodDividends of surplus

(983)

(983)

(983)

(983)

Net income

4,200

4,200

4,200

4,200

(0)

(0)

Purchase of treasury
shares(0)

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

1

1

–

–

–

–

3,217

3,217

(0)

3,217

1

3,218

4,157

4,032

4,032

39

27,172

27,212(3,975)31,425

4

31,43019

(Changes in Accounting Policies)(Changes in accounting policies that are difficult to distinguish from changes in accounting estimate)
Following the revision of the Corporation Tax Act, from the year ended February 28, 2014, Gulliver changed to applying a depreciation
method based on the revised Corporation Tax Act to property, plant and equipment acquired since March 1, 2013.
The impact on the consolidated financial statements for the fiscal year under review as a result of this change is minimal.
(Changes in Method of Presentation)(Consolidated Statements of Income)From the fiscal year under review, “Compensation income,” which had been included in “Other” under “Non-operating income” in theprevious fiscal year, has been stated as a separate item in the consolidated financial statements because its monetary amount exceeded ten percentof the total amount of “Non-operating income.” In order to reflect this change in the method of presentation, “Compensation income” has been
reclassified in the consolidated financial statements for the previous fiscal year.
As a result of the change, the 55 million yen of “Other” under “Non-operating income” in the consolidated statements of income for theprevious fiscal year was reclassified as 2 million yen of “Compensation income” and 52 yen million of “Other.”(Change in the method of presentation in the Consolidated Statements of Income)In the fiscal year under review, the Gulliver Group reported an impairment loss for the following asset groups. Note that this does not apply tothe previous fiscal year.
Fiscal year ended February 28, 2014
PurposeType
Location
Sales store
Building, etc.
Kansai region and elsewhere
In principle, the Gulliver Group groups its operating assets by sales store. In the fiscal year under review, the book value of sales store businessassets whose profitability had declined was written down to the recoverable value of these assets, and the difference was reported as a special
loss as an impairment loss of 52 million yen. This figure breaks down as 50 million yen for “Buildings and structures” and 2 million yen for“Tools, furniture and fixtures.” The recoverable value of this asset group is estimated from the value in use based on future cash flows. A value
in use that is negative indicates that the recoverable value has been evaluated as 0 yen.

20