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 Six Months Ended August 31, 2015
(Based on Japanese GAAP)

October 13, 2015

Company name:
Gulliver International Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

7599
Chairman

URL

http://221616.com

Kenichi Hatori

Inquiries:Manager, Business Management Division
Scheduled date to file Quarterly Securities Report:

Masayuki Matsumoto
October 15, 2015

Holding of quarterly financial results meeting:Yes

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

TEL

03 (5208) 5503

November 9, 2015
Yes

(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended August 31, 2015 (from March 1, 2015 to August 31, 2015)(1) Consolidated financial results (cumulative)

Six months ended August 31, 2015
Six months ended August 31, 2014

Net sales

Millions of yen
95,024
74,631

Operating income% Millions of yen
27.3
4,079
(10.5)
2,727

Net income per share

Yen
25.28
16.23

Six months ended August 31, 2015
Six months ended August 31, 2014
(2) Consolidated financial position

Total assets

As of August 31, 2015
As of February 28, 2015

Year ended February 28, 2015
Year ending February 29, 2016

Year ending February 29, 2016 (Forecast)Yen––% Millions of yen
46.6
2,563
(24.6)
1,645

Equity ratio

Net assets per share%56.2
60.6

Yen
359.31341.49Annual dividends per share

2nd quarter-end

Yen
7.50
7.50

3rd quarter-end

Yen––

Fiscal year-end

Yen
7.50
7.50

3. Forecast of consolidated financial results for the year ending February 29, 2016 (from March 1, 2015 to February 29, 2016)
Net sales
Full year

Millions of yen
180,000%
55.8(28.4)

Yen–
16.23

Millions of yen
36,436
34,6292. Cash dividends
1st quarter-end% Millions of yen
49.6
4,043(23.3)
2,758

Net income

Diluted net income per share

Net assets

Millions of yen
64,785
57,153

Percentages indicate year-on-year changes

Ordinary income

Total

Yen
15.00
15.00

Percentages indicate year-on-year changes
Net income
Operating income
Ordinary income
Net income
per share% Millions of yen% Millions of yen% Millions of yen%
Yen
15.6
8,200
54.0
8,200
53.4
4,900
49.1
48.32

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2015(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo
No
No

(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of August 31, 2015

106,888,000 shares As of February 28, 2015

106,888,000 shares

As of August 31, 20155,480,300 shares As of February 28, 2015

5,480,170 shares

Number of treasury shares at the end of the period

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2015

101,407,766 shares Six months ended August 31, 2014

2101,375,026 shares1. Qualitative information on settlement of accounts for the first half(1) Qualitative information on consolidated operating results
In the first half of the fiscal year under review (March 1 to August 31, 2015), retail car sales volume at nationwide directly managed storesincreased by 35.7% from the same period last year to 34,020 cars. The result reflects the success of accelerated new store openings of display
sales stores (WOW!TOWN, OUTLET, LIBERALA, SNAP HOUSE, and MINICLE).
On the other hand, at existing Gulliver stores, the market has not yet recovered from a protracted slump in the new car market following theincrease in the consumption tax rate in 2014. In this situation, the Company worked to increase the number of customers visiting stores bymaking advertising expenditures centered on the Internet. As a result, the number of customers visiting stores increased more than initiallyexpected, and the number of cars purchased at directly managed stores increased by 24.1% year on year to 88,128.
Due to the above, consolidated business results for the first half were as follows: consolidated net sales increased by 27.3% from the same term
last year to 95,024 million yen, operating income increased by 49.6% from the same term last year to 4,079 million yen, ordinary income
increased by 46.6% from the same term last year to 4,043 million yen and net income increased by 55.8% from the same term last year to 2,563
million yen.
(2) Qualitative information on consolidated financial position
AssetsTotal assets at August 31, 2015 were 64,785 million yen, a increase of 13.4 % from February 28, 2015.
Current assets were 34,437 million yen, up 17.1 % from the same date. The primary contributing factors were a 7,871 million yen increase in
cash and deposit, on the other hand, a 1,366 million yen decrease in notes and accounts receivable-trade.
Of the total amount of accounts receivable-trade, the accounts receivable (financial credit) of consolidated subsidiary G-One Financial Services
Co., Ltd. stood at 624 million yen.
Total noncurrent assets at August 31, 2015 increased by 9.4% from February 28, 2015, to 30,348 million yen. This mainly reflected a 1,348
million yen increase in Buildings and structures, a 304 million yen increase in Construction assistance fund receivables, and a 254 million yen
increase in Lease and guarantee deposits.
Liabilities
Total liabilities at August 31, 2015 increased by 25.9 % from February 28, 2015 to 28,349 million yen.
Current liabilities at August 31, 2015 decreased by 31.5 % from February 28, 2015 to 13,599 million yen. The primary contributing factor was a1,246 million yen increase in Income taxes payable, a 4,647 million yen decrease in Current portion of long-term loans payable, a 813 million
yen decrease in Accounts payable – other, a 769 million yen decrease in Advances received, and a 671 million yen decrease in Accounts payable- trade.
Total noncurrent liabilities at August 31, 2015 increased by 451.2 % from February 28, 2015 to 14,749 million yen. The primary contributing
factor was a 11,990 million yen increase in Long-term loans payable.
Net assets
Net assets at August 31, 2015 increased by 5.2 % from February 28, 2015 to 36,436 million yen, mainly due to a 1,802 million yen increase inretained earnings accompanying the posting of net income.
(3) Outlook for the fiscal year ending February 29, 2016
There have been no changes to the full-year consolidated results forecasts for the fiscal year ending February 29, 2016, which were announcedwith Financial Results, First Quarter of the Fiscal Year Ending February 29, 2016 (Japanese GAAP; Consolidated) issued on July 13, 2015.

3

Quarterly consolidated financial statements
Consolidated balance sheets

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
Deferred tax assets
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, netLand
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Goodwill
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
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of February 28, 2015

(Millions of yen)
As of August 31, 2015

4,897
4,619
17,0208012,114(49)
29,402

12,7683,253
16,142
811
1,513
(52)
34,437

20,622(6,571)
14,051
571
(104)
466
3,155
(2,414)741
218
649
16,12622,554(7,155)
15,399
443
(130)
313
3,416
(2,636)779
218
716
17,426

1,332
1,997
19
3,349

1,566
1,946
19
3,532

0
71
124
4,034
3,472
268
381
(78)
8,274
27,75057,153

0
77
265
4,288
3,777
260
798
(78)
9,389
30,34864,785

4

Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Accounts payable - other
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Provision for merchandise warranties
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Long-term guarantee deposited
Provision for directors' retirement benefits
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders' 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
Total net assets
Total liabilities and net assets

As of February 28, 2015

(Millions of yen)
As of August 31, 2015

5,100
150
4,647
495
2,203
242
2,951
479
436
1,276
1,864
19,847

4,429
–
–
–
1,389
1,489
2,181
319
612
1,025
2,151
13,599

43
690
507
1,435
2,676
22,523

12,033
654
523
1,537
14,74928,3494,157
4,032
30,278(3,947)34,521

4,157
4,032
32,081(3,947)36,323108
108
34,62957,15311211236,43664,785

5Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended
Six months ended
August 31, 2014
August 31, 2015
Net sales
74,631
95,024
Cost of sales
55,82871,573Gross profit
18,802
23,450
Selling, general and administrative expenses
16,075
19,371
Operating income
2,727
4,079
Non-operating income
Interest income
813
Compensation income
12–
Foreign exchange gains
1–
Reversal of allowance for doubtful accounts
0–
Insurance income
10–
Insurance premiums refunded cancellation
–
11
Other
2130
Total non-operating income
5355
Non-operating expenses
Interest expenses
2043
Provision of allowance for doubtful accounts
–
0www–
15
Foreign exchange losses
–
7
Other
222
Total non-operating expenses
2290
Ordinary income
2,758
4,043
Extraordinary income
Gain on liquidation of subsidiaries
–
3
Other
00
Total extraordinary income
03
Extraordinary losses
Loss on retirement of non-current assets
2925
Lease contract cancellation penalty
24–
Other
10
Total extraordinary losses
54
25
Income before income taxes and minority interests
2,704
4,021
Income taxes - current
702
1,461
Income taxes - deferred356(3)
Total income taxes
1,058
1,458
Income before minority interests
1,645
2,563
Net income
1,645
2,563

6

Consolidated statements of comprehensive income (cumulative)

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

7

Six months ended
August 31, 2014
1,645

(Millions of yen)Six months ended
August 31, 2015
2,563(3)
(3)
1,642

44
2,567

1,642

2,567

Consolidated statements of cash flows(Millions of yen)Six months ended
August 31, 2015

Six months ended
August 31, 2014

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors'
retirement benefits
Increase in provision for merchandise warranties
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of non-current assets
Lease contract cancellation penalty
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in accrued consumption taxes
Increase (decrease) in notes and accounts payable trade
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
Purchase of shares of subsidiaries and associates
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
Payments into time deposits
Proceeds from withdrawal of time deposits
Other, net
Net cash provided by (used in) investing activities

82,704736
44,0211,036
50(5)29617616

16(548)
(8)
20(1)
29
24(251)
(13)
43–
25–

1,325

597

(318)
(107)

886
645

135(675)

(367)
3,735
8(20)
(1,965)
1,757

(327)
6,235
13(43)(195)
6,009(2,067)
(336)
(9)
(10)
–
1(183)(2,432)
(520)
–
(5)
(148)
7(357)

38

36(374)

(444)

124

149

(4)
39
1(2,780)(5)12(361)(4,069)(Millions of yen)Six months ended
August 31, 2015

Six months ended
August 31, 2014

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Proceeds from exercise of share options
Cash dividends paid
Other, net
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
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period9(134)–(16)–
12(809)
(0)
(948)

(150)
12,000(4,656)
(495)
–
(759)
(0)
5,938

(2)

0

(1,973)
14,661

7,878
4,863

103

–

12,791

12,741