1

Gulliver International Co., Ltd.

Financial Results

Fiscal 2009
(March 1, 2008 to February 28, 2009)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, 2009

Gulliver International Co., Ltd.

April 20, 2009

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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 27, 2009
Scheduled date for distribution of dividends: -Scheduled date for submission of the financial report: May 28, 2009
1. Consolidated financial results for the fiscal year ended February 28, 2009
1) Consolidated Operating Results(Millions of yen, rounded down)

Fiscal year ended
February 29, 2008

Fiscal year ended
February 28, 2009(% 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 (%) ..........................

163,6693,905
2,635(2,836)(300.38)-(15.5)4.8
2.4(% change)(14.1)(55.1)(69.7)--

190,592
8,698
8,699
4,650
482.27482.15
23.6
18.0
4.6

4.6
(21.8)(20.8)(29.1)------

Notes:
1. Investment gains and losses under equity method: FY ended February 2009: ¥ -- million; FY ended February 2008: ¥ -- 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, 2009
58,773
15,83626.9%¥1,704.02

As of February 29, 2008
50,426
20,76940.4%¥2,122.06

Note:
1. Shareholders’ equity: FY ended February 2009: ¥15,829 million; FY ended February 2008: ¥20,365million

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 29, 2008
1,354
(2,960)177
3,639

Fiscal year ended
February 28, 2009
(6,539)(2,907)
10,0514,215

2. Dividends
Fiscal year ended
February 29, 2008
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 (%) ...................................

87.00
87.00
174.00
1,744
36.1
8.6

－ 2 －

Fiscal year ended
February 28, 2009
41.00
0.00
41.00
393
-2.1

Fiscal year ended
February 28, 2010
(forecast)
38.00
38.00
76.00
30.1

3. Consolidated forecasts for the fiscal year ending February 28, 2010 (March 1, 2009 to February 28, 2010)(Millions of yen, rounded down)

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

Interim period ending
August 31, 2009
74,000(18.7%)FY ending
February 28, 2010
154,000(5.9%)

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

2,300(18.1%)

5,000

28.0%

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

2,300(20.7%)

5,000

89.8%

Net Income ..................................................................

900(13.6%)

2,300--

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

¥98.93¥252.82

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 15 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, 2009 10,688,800 shares; As of February 29, 2008: 10,688,800 shares(2) Number of treasury shares at end of period:
As of February 28, 2009: 1,591,730 shares; As of February 29, 2008: 1,091,723 shares
Note: See per share information on page 23 for detail 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, 2009

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

Fiscal year ended
February 29, 2008

Fiscal year ended
February 28, 2009(% change)

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

139,572
4,327
3,983(2,093)(221.75)--(25.6%)(85.1%)(53.8%)----(% change)

167,219
8,459
8,614
4,293
445.27445.160.4%(21.0%)(18.0%)(23.9%)---

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, 2009
Total assets ...................................................................
Net assets......................................................................
Shareholders’ equity ratio (%) .......................................
Net assets per share (¥) ................................................

As of February 29, 2008

44,307
15,26334.5%¥1,677.81

35,37819,38954.8%¥2,020.31

Note:
1. Shareholders’ equity: FY ended February 2009: ¥15,263 million; FY ended February 2008: ¥19,389 million

2. Non-Consolidated forecasts for the fiscal year ending February 29, 2010 (March 1, 2009 to February 28, 2010)(Millions of yen, rounded down)

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

Interim period ending
August 31, 2009
63,300(17.9%)
2,300(18.4%)
2,300(20.1%)
1,100
0.1%¥120.92

FY ending
February 28, 2010
130,500(6.5%)
4,600
6.3%
4,600
15.5%
2,100
-¥230.84

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, 2009 decreased 14.1% compared to the previous
fiscal year. The primary causes were a decrease in the number of cars purchased by directly managed stores
resulting in a decrease in the number of cars sold and decline in the market for used cars at auctions in comparison
to the previous fiscal year, resulting in a drop in the average sale price per car. Although net sales decreased, retail
auto sales, which are more profitable than used car auction sales, grew steadily, and in recent years we have begun
to see the benefits of efforts to strengthen retail sales slowly emerge. Further, revenues of consolidated subsidiary
G-One Financial Services Co., Ltd., a financial services company that primarily handles auto loans, expanded due
to an increase in the number of retail cars sold and other factors.
Sales, general and administrative expenses increased due to an increase in the sales, general and administrative
expenses of consolidated subsidiaries and an increase in personnel expenses resulting from an increase in staff
compared to the previous fiscal year. Further, ¥1,097 million in non-operating expenses were recorded due to aforeign exchange loss at consolidated subsidiary G-Trading Co., Ltd. (JQ: 3348).
Extraordinary losses recorded were due to the loss on disposal of fixed assets following the closure ofcertain stores, losses recorded following changes to the accounting method for reserve for directors’
retirement benefit and changes to the accounting method for merchandize warranty reserve recorded prior to
the financial report for the third quarter of the current fiscal year. Further, at consolidated subsidiary G-Trading
Co., Ltd. extraordinary losses were recorded for inventory write downs, allowance for bad debts for accounts
receivable on exports to Russia and leased assets to subsidiaries and impairment losses on fixed assets as aresult of a rigorous review focused on asset value preservation. As a result of the above, extraordinary losses
increased ¥3,251 million or 927.1% over the previous fiscal year to ¥3,601 million.
As a result of the factors noted above, consolidated net sales for the fiscal year under review decreased by 14.1%
compared to the previous fiscal year to ¥163,669 million, operating income decreased 55.1% to ¥3,905 million andordinary income decreased 69.7% to ¥2,635 million, resulting in a net loss of ¥2,836 million.

Performance by segment
i. Sales of used automobiles
Among the stores involved in the sale and purchase of cars, 308 were directly operated (9 more than at the end of
the previous fiscal year). Vehicles handled by Gulliver are sold in a relatively short period of time through sales
channels that include 1) auction sites throughout Japan, 2) an on-screen selling system ‘Dolphinet’, and 3) GAO!
Auction, the internet based real-time auction aimed at used car dealers.
As previously mentioned, sales of used automobiles decreased due to a drop in the average sales price per car
as a result of a decrease in the number of cars sold at directly managed stores and a decrease in the price of usedcars at auctions in comparison to the previous fiscal year.
As a result, consolidated net sales for the period under review decreased 14.0%, or ¥25,144 million compared tothe previous fiscal year, to ¥154,298 million, and operating income decreased 42.6%, or ¥4,856 million, to ¥6,538
million.
－ 5 －ii. Financing business
Revenues of G-One Financial Services Co., Ltd., a financial services company, grew steadily due to an increasein the number of loans relative to the growth in retail auto sales. As a result of the increase in number of loans,accounts receivable for the financial business increased 137.8%, or ¥11,941 million, to ¥20,605 million. Further, sales,

general and administrative expenses increased following expansion of operations.
As a result, consolidated net sales for the period under review increased 26.0%, or ¥1,333 million, over theprevious fiscal year to ¥6,460 million, and operating income decreased 29.5%, or ¥43 million, to ¥103 million.
iii. Other businesses
The number of Gulliver franchised stores decreased by a net 6 stores compared to the previous fiscal year end to
145 stores. As a result, revenues from Gulliver franchised stores also decreased. However, revenues from Hucobo
Co., Ltd., a transport company, increased.
As a result, consolidated net sales for the period under review increased 5.7%, or ¥603 million, to ¥11,144 million
and operating income decreased 7.3%, or ¥198 million, to ¥2,502 million.

Outlook for the fiscal year ending February 28, 2010
Note: Forecasts represent changes compared to the previous fiscal year.

The Company aims to continue to strengthen retail sales which are central to revenues in the used car sales
business. As regards advertising, the Company will continue to invest efficiently while increasing appeal for retailsales. In store development, the Company will emphasize efficiency, restrain development of new directly managed
stores and emphasize increasing the productivity of each store. Operating income of consolidated subsidiary
G-Trading Co., Ltd. is forecasted to return to profitability.
Development of the financing business as an operation focusing on auto loans will continue. Revenues are
forecasted to increase following the increase in the number of loans. We are not forecasting any significant change
in other businesses.
As a result, consolidated forecasts for the fiscal year ending February 28, 2010 are for net sales to decrease 5.9%
to ¥154,000 million, operating income to increase 28.0% to ¥5,000 million and ordinary income to increase 89.8% to¥5,000 million and net income for the fiscal year of ¥2,300 million.

－ 6 －(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 ¥9,053 million compared to the end of
the previous fiscal period to ¥40,202 million, due primarily to a ¥7,130 million increase in accounts receivable and a¥875 million increase in inventories.
2) Fixed assets
The balance of fixed assets at the end of the period under review decreased ¥707 million compared to the end of
the previous fiscal period to ¥18,571 million, primarily due to a ¥650 million decrease in construction cooperation
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 ¥16,784 million compared to theend of the previous fiscal period to ¥40,862 million, due primarily to a ¥15,512 million increase in short-termborrowings as a result of business expansion.
4) Long-term liabilities
The balance of long-term liabilities at the end of the period under review decreased ¥3,504 million compared to theend of the previous fiscal period to ¥2,074 million, due primarily to a ¥3,460 million decrease in borrowings resulting
from the shift from long-term borrowings to short-term borrowings.
5) Minority interests
The balance of minority interests at the end of the period under review decreased ¥398 million to ¥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 decreased ¥4,933 million compared to the end of
the previous fiscal period to ¥15,836 million primarily due to a ¥4,064 million decrease in retained profit.
Cash flow
For the fiscal year ended February 28, 2009, cash flow from operating activities and investing activities were
negative while cash flow from financing activities was positive. Overall cash flow was a positive figure of ¥576 million.
The balance of cash and cash equivalents at the end of the period was ¥4,215 million.
Cash flow from operating activities
Cash and cash equivalents used in operating activities was ¥6,539 million.
Principal components of this included a net loss before adjustment for taxes of ¥912 million, an increase in accounts
receivable of ¥6,482million, and corporate taxes paid of ¥3,050 million.
Cash flow from investing activities
Net cash used in investing activities was ¥2,907 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 ¥10,051 million. This was largely due to the proceeds fromborrowings.

－ 7 －Trends in Gulliver’s shareholders’ equity and cash flow indicators are as follows:
FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

Equity ratio (%)

46.7

41.3

41.2

40.4

26.9

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

443.4

338.5

181.9

80.6

19.8

Debt redemption years(years)

1.4

2.1

2.3

12.7

--

Interest coverage ratio

207.9

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).

2. Basic policy concerning distribution of profits and dividend forecasts
We have identified the return of profits to investors 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.
Based on these policies, forecast dividends per share for the fiscal year ended February 28, 2010 are based on aforecasted consolidated net income of ¥2,300 million and are expected to be ¥76.00 per share (an interim dividendof ¥38.00 and a year-end dividend of ¥38.00).
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.

－ 8 －Consolidated Balance Sheets(Millions of yen)
As of February 28, 2009

As of February 29, 2008%ASSETS%

Current assets
Cash and deposits .................................

4,215

3,639

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

23,296

16,166Inventory................................................

8,169

7,294

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

2,287

2,085

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

456

407

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

2,726

1,581

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

(951)

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

40,202(25)
68.4

31,14861.8

Fixed assets
Tangible fixed assets
Building and structures ..........................

11,011

10,547

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

(3,241)(2,699)Vehicles and transportation ...................

53

48

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

(39)

(36)

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

3,204

3,259

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

(2,039)(1,839)Land.......................................................

409

327

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

164

124

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

--

25

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

9,522

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

77

194

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

1,545

1,994

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

72

30

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

1,695

16.2

2.9

9,758

2,220

19.4

4.4

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

118

98

Shares in affiliate companies1 ...............

150

5

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

158

161

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

3,953

3,404

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

2,530

3,180

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

434

465

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

406

275

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

(400)

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

7,352
18,571

12.5
31.6

7,298
19,278

14.4
38.2

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

58,773100.0

50,426

100.0

－ 9 －

(292)

Consolidated Balance Sheets(Millions of yen)
As of February 28, 2009

As of February 29, 2008%

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

3,849

3,505

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

28,643

13,131

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

2,420

3,039

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

551

1,306

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

166

351

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

559

562

Reserve for director’s bonuses ...............

--

63

Reserve for Merchandize warranty.......

354

--

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

4,317

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

40,862

2,119
69.5

24,078

47.7

Long-term liabilities
Long-term borrowing ..............................

624

4,085

Guarantee deposits received..................
Reserve for directors’ retirement
benefit .................................................
Negative goodwill ...................................

874

1,021

425

--

138

--

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

11

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

2,074

3.5

5,578

471
11.1

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

42,93773.0

29,657

58.8

Paid in capital .........................................

4,157

7.1

4,157

8.3

Capital surplus ........................................

4,032

6.9

4,032

8.0

NET ASSETS

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

18,76831.9

22,832

45.3

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

(11,465)(19.5)(10,678)(21.2)

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

15,492

26.4

20,344

40.4

Valuation difference on othermarketable securities .........................
Valuation and translation
adjustments ........................................

(8)

(0.0)

7

0.0

345

0.6

13

0.0

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

336

0.6

20

0.0

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

4

0.0

4

0.0

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

2

0.0

400

0.8

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

15,83627.0

20,76941.2

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

58,773100.0

50,426100.0－ 10 －

Consolidated Statements of Income
March 1, 2008 to
February 28, 2009

(Millions of yen)March 1, 2007 to
February 29, 2008%

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

163,699 100.0

190,592

100.0

Cost of sales.............................................................

124,07275.8

147,032

77.1

Gross profit ........................................................

39,59624.2

43,55922.935,691

21.8

34,860

18.3

2.4

8,698

4.6

0.2

5
17
4
15
265
307

0.2

1.0
1.6

140
27
33
105
306
8,699

0.2
4.6

0.0

20
92
15
17
146

0.1

*1

Sales general and administrative expenses .........
Operating income....................................................
Non-operating income
Interest received ...................................................
Dividends received.....................
Commissions received..........................................
Compensation received ........................................
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
Gains on cancellation of insurance contracts..........
Gains from cancellation in the previous term ..........
Gain from sale of fixed assets.................................
Other ....................................................................
Total extraordinary profit..............................................
Extraordinary losses
Loss on disposal of fixed assets .............................
Impairment losses...................................................
Provision for reserve for directors’ retirement
benefit for prior years .........................................

3,905
17
1
--239
282
103
101
1,149
123
1,552
2,635
--10
43
54
640
414

330
--

376

--

249

--

Inventory evaluation loss ........................................
Impairment loss on shares in affiliates ...................
Evaluation loss on investment securities…………
iti for doubtful accounts ...............................
Provision

981
76
39

----

701

--

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

Corporate tax adjustment ........................................
Income (loss) from minority interests ..................

120
3,601
(912)
2,328
(9)
395

0.3

19
350
8,495
3,669
126
(49)

(0.0)

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

(2,836)

(1.7)

4,650

2.5

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

Total extraordinary losses .......................................
Income (loss) before taxes, etc. ...........................
Income tax, inhabitants tax and enterprise tax........

－ 11 －

2.2
(0.6)

0.2
4.5

Changes in Consolidated Shareholders’ Equity: March 1, 2008 to February 28, 2009
(Millions of yen)
Shareholders’ equity
CapitalCapital surplus

4,157

Balance as of February 29, 2008

4,032

Retained profit

Treasury stock

22,833(10,678)

Total shareholders’ equity

20,344

Change during the period
Surplus dividend(1,228)(1,228)Net income(2,836)(2,836)

Acquisition of treasury stock

(787)

(787)

Changes to items other thanshareholders’ equity during the

―

―

―

―

―

―

―

(4,064)(787)(4,851)

4,157

4,032

18,768(11,465)

15,492

period (net)Total change during period
Balance as of February 28, 2009

Valuation and differences due to foreign exchange
Valuationdifferences on other Adjustment due tomarketableexchange ratesecurities
Balance as of February 29, 2008

7

Total valuation andtranslation

Warrants

Minority interests

Total net assets

adjustments

13

20

4

400

20,769Change during the period
Surplus dividend(1,228)Net income(2,836)

Acquisition of treasury stock(787)

Changes to items other thanshareholders’ equity during the

(16)

331

315

0

(397)

(82)

Total change during period

(16)

331

315

0

(397)

(4,933)

Balance as of February 28, 2009

(8)

345

336

4

2

15,836

period (net)－ 12 －

Changes in Consolidated Shareholders’ Equity: March 1, 2007 to February 29, 2008
(Millions of yen)
Shareholders’ equity
Capital4,157

Balance as of February 28, 2007

Capital surplus

Retained profit

4,032

20,283

Treasury stock

Total shareholders’ equity(9,540)18,932

Change during the period
Surplus dividend(1,744)(1,744)

Net income

4,650

4,650

Acquisition of treasury stock(1,320)(1,320)

182

56

(126)

Disposal of treasury stock
Decrease in retained profit
following changes to the scopeof consolidation
Increase in retained profit
following changes to the scope of
consolidation
Changes to items other thanshareholders’ equity during theperiod (net)

(309)

78

78

－

－

－

－

－

－

－

2,549

(1,137)

1,411

4,157

4,032

22,833(10,678)

20,344

Total change during period
Balance as of February 29, 2008

(309)

Valuation and differences due to foreign exchange
Valuationdifferences on other Adjustment due tomarketableexchange ratesecurities
Balance as of February 28, 2007

6

Total valuation andtranslation

Warrants

Minority interests

Total net assets

366

19,303

adjustments

(2)

3

1

Change during the period
Surplus dividend(1,744)

Net income

4,650

Acquisition of treasury stock(1,320)56

Disposal of treasury stock
Decrease in retained profit
following changes to thescope of consolidation
Increase in retained profit
following changes to thescope of consolidation
Changes to items other thanshareholders’ equity during theperiod (net)

(309)

78

1

15

17

3

33

53

Total change during period

1

15

17

3

33

1,465

Balance as of February 29, 2008

7

13

20

4

400

20,769－ 13 －

Consolidated Statements of Cash flows
March 1, 2008 to
February 28, 2009

(Millions of yen)March 1, 2007 to
February 29, 2008

(912)
2,385
67
(37)
(3)
1,038
354
425
(17)
177
1,149
(10)
640
414
(6,482)(1,562)
(515)
(19)
46
(283)
(3,328)17(103)(3,050)(6,539)

8,495
2,342
--109
174
--(5)
140
-(15)
330
-(2,267)(2,588)
169
(601)
(89)
508
6,705
5
(140)
(5,214)
1,354(2,253)
32
(478)
(212)
(98)
8
(9)
3
100
(2,907)(1,946)
116
(824)
(0)
--(3)
3
(305)
(2,960)12,523(450)-(787)--(1,228)(5)-10,051

(471)
(986)
4,661
(1,320)56-(1,744)
(5)
(10)
177

(28)

6

576
3,639

(1,421)
4,855

--

205

4,215

3,639

I. Cash flow from operating activities
Income (loss) before taxes, etc. .....................................................
Depreciation ...................................................................................
..................................................................................................
....................................................................................................
Increase (decrease) in reserve for bonuses...................................
Increase (decrease) in allowance for doubtful accounts ................
Additional reserve for merchandize warranty.................................
Additional reserve for directors’ retirement benefit ....................
Interest and dividends received .....................................................
Interest paid ...................................................................................
Gain (loss) on foreign exchange ....................................................
Gain on sale of fixed assets ...........................................................
Loss on disposal of fixed assets ....................................................
Impairment losses ..........................................................................
Increase (decrease) in accounts receivable...................................
Increase (decrease) in inventory....................................................
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 sale of investment in securities ............................
Amounts lent ..................................................................................
Proceeds from repayment of loans ................................................
Increase (decrease) in deposits and guarantee payments ............
Cash flow from investing activities ............................................
III. Cash flow from financing activities
Net increase (decrease) in short-term borrowings .........................
Repayment of long-term debt.........................................................
Proceeds from long-term borrowings .............................................
Payments for acquisition of treasury stock.....................................
Proceeds from disposal of treasury stock ......................................
Payments for issuance of new shares ...........................................
Dividend payments.........................................................................
Dividends paid to minority shareholders ........................................
Proceeds from payments from minority shareholders....................
Cash flow from financing activities............................................
IV. Cash and cash equivalents currency translationdifferences .................................................................................
V. (Decrease) increase in cash and cash equivalents..................
VI. Cash and cash equivalents at beginning of period ................
VII. Increase (decrease) in cash and cash equivalents fromchange in scope of consolidation ...........................................

－ 14 －
VIII. Cash and cash equivalents at end of period..........................

Material Items Forming the Basis for the Preparation of theConsolidated Financial Statements for Fiscal Year Ended February 28, 2009
Item
1.Items relating to
the scope of
consolidation

2. Application of
the equity
methodMarch 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
G-Rental Co., Ltd.
Hucobo Co., Ltd.
Takeoff Co., Ltd.
Gulliver USA, Inc.
Gulliver East, Inc.
(Change in scope of consolidation)
None

March 1, 2007 - February 29, 2008
(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
G-Rental Co., Ltd.
Hucobo Co., Ltd.
Takeoff Co., Ltd.
Gulliver USA, Inc.
Gulliver East, Inc.
(Change in scope of consolidation)
Of the above G-Care Kyousaikai, Gulliver USA,
Inc. and Gulliver East, Inc. have been includedin the scope of consolidation since theirsignificance has increased during the fiscal year.
As a result of an acquisition of shares in
G-Rental Co., Ltd. during the consolidated fiscal
year and having newly established G-One Credit
Services Co., Ltd., both companies have been
included in the scope of consolidation. However,
Carbross Co., Ltd. has been excluded fromconsolidation since its significance has
decreased during the fiscal period.

(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 International Consulting (Shanghai)Co., Ltd.
Gulliver India Co., Ltd.
Gulliver Auto True Co., Ltd.
G-TRADING INDIA PVT.LTD
Reasons for exclusion from consolidation:
Reasons for exclusion from consolidation:
Non-consolidated subsidiary Carboss Co., Ltd., G Carboss Co., Ltd. and G One Insurance Service Co.,One Insurance Service Co,. Ltd., Gulliver
Ltd. are small and their total assets, sales, net income
and retained profit, etc. do not significantly affect theInternational Consulting (Shanghai) Co., Ltd.,
consolidated financial statements.
Gulliver India, Gulliver Auto True are small andtheir total assets, sales, net income and retained
profit (or the amounts proportionate to ourholdings in these companies), do not significantly
affect the consolidated financial statements.
(1) There are no non-consolidated subsidiaries or (1) There are no non-consolidated subsidiaries oraffiliates to which the equity method is applied.
affiliates to which the equity method is applied.
(2) Non-consolidated subsidiaries and affiliates towhich the equity method is not applied:(2) Non-consolidated subsidiaries and affiliates to
Carboss Co., Ltd.
which the equity method is not applied:
G One Insurance Service Co,. Ltd.
Carboss Co., Ltd.
UG Powers Co., Ltd.
G One Insurance Service Co,. Ltd.
Gulliver International Consulting (Shanghai)
UG Powers Co., Ltd.
Co., Ltd.
Gulliver India
Gulliver Auto True
G-TRADING INDIA PVT.LTD
Reasons for not applying the equity method:
Reasons for not applying the equity method:
As at rightThe effect of the company on net income and retained
profit is immaterial and its overall importance is low.
－ 15 －

Item

March 1, 2008 - February 28, 2009

3. Items relating to the Of the consolidated subsidiaries, the following havesettlement days of settlement date that differ from the consolidated
settlement date of the end of February:consolidated-Gulliver Europe Ltd.
subsidiaries-Samurai Motors Co.
-G-Trading Rus LLC,
-Gulliver USA Inc.
-Gulliver East Inc.
Since the gap between the Consolidated Financial
Statements settlement dates for the above 3
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, 2007 - February 29, 2008
Of the consolidated subsidiaries, Gulliver Europe
Ltd., Samurai Motors Co. and G-Trading Rus LLC,
have a December 31 settlement date that differ
from the parent consolidated settlement date of theend of February. Since the gap between theConsolidated Financial Statements settlement
dates for Gulliver Europe Ltd., Samurai Motors Co.,
Takeoff Co., Ltd. and G-Trading Rus LLC does notexceed 3 months, consolidation is performed
based on the said subsidiary’s financial
statements. For material transactions occurring
between the settlement dates, consolidation
adjustments are made as necessary.

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 as necessary.
1. Marketable securities
1. Marketable securities
Bonds intended to be held to maturity:
Bonds intended to be held to maturity:
As at rightAmortizing cost method (straight line)
Other marketable securities
As at right

Other marketable securitiesThose with a market price: Valued by the market
method based on the market price as at theaccounting date. Valuation gains or losses aretaken direct to net assets and the book value isdetermined by moving average method.
Those without a market value:
The cost method using the moving averagemethodThose without a market value:
As at right
Shareholdings in subsidiaries:
As at right

Shareholdings in subsidiaries:
The cost method using the moving averagemethod

2. Derivatives

2. Derivatives
As at rightMarket price method

3. Inventories
A. Merchandise:
Vehicles: As at right
Other: As at right
B. Supplies:
As at right

3. Inventories
A. Merchandise:
Vehicles: Actual cost method
Other:First in first out method applied
B. Supplies:
Final cost method applied－ 16 －

Item

March 1, 2008 - February 28, 2009(i) Tangible Fixed Assets(2) Depreciation
As at rightmethods applied tomaterial depreciable
assets(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
for income taxes is immaterial.
(ii) Intangible Fixed Assets
As at right(3) Treatment ofdeferred assets(4) Criteria forrecordingmaterial
reserves

March 1, 2007 - February 29, 2008(i) Tangible Fixed Assets
Declining Balance Method is applied. However,for buildings (excluding attached equipment)
acquired since 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(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.

(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(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 theprobability of recovery, are assessed on an
individual basis and estimated unrecoverable
amounts are recorded.
(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) Bonuses for directors
Amount based on forecasted provisional amountin preparation for payment of bonuses to directors.

(iii) Reserve for Directors’ Bonuses
As at right－ 17 －

Item

March 1, 2008 - February 28, 2009(iv) 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.
(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
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 the merchandize
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.

－ 18 －March 1, 2007 - February 29, 2008----------------

March 1, 2008 - February 28, 2009

March 1, 2007 - February 29, 2008

(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 rightItem(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
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(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.

Accounting treatment for consumption tax
As at right

As at right(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.
(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.

Market valuation method is fully applied.

－ 19 －

March 1, 2008 - February 28, 2009

March 1, 2007 - February 29, 2008

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, 2008 - February 28, 2009

March 1, 2007 – February 29, 2008――――――

Changes to the depreciation method of tangible fixed assets
From the period of the fiscal year ended February 29, 2008, in
accordance with the revision of Corporation Tax Law (Law Concerning
the Partial Revision of Income Tax No. 6, issued on March 30, 2007 andGovernment Ordinance Concerning the Partial Revision of Corporation
Tax Law Order No. 83, issued on March 30, 2007), the method ofdepreciation of tangible fixed assets acquired after April 1, 2007 has
been revised. The effects of this change on operating income, ordinary
income or net income before adjustment for income taxes is immaterial.

－ 20 －

4. Segment Information
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(1) Sales to external

150,959

5,032

7,677

163,669

─

163,669

3,339

1,427

3,467

8,234

△8,234―

customers(2) Inter-segmental sales ortransfers

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

─

414

Impairment losses

1,688

148

231

2,069

316

2,385

Capital expenditure

2,355

149

234

2,739

122

2,861

Total

Assets, Depreciation andCapital Expenditure
AssetsImpairment

losseson

long-lived assets

Notes:
1. Method of business classification: Businesses have been classified according to the classification used in calculating sales.
2. Names of principal products or services attributable to each business classification:
Business Classification
Used car sales
Financing business

Principal Product Name or Service Name
Purchase and sales of used automobiles 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

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

6,889

6,869

Company” item

surplus funds and head officeadministration at the parent company－ 21 －

Segment information by business type
Fiscal year ended February 29, 2008 (March 1, 2007 to February 29, 2008)
Trading of

Financing

Other

used cars

businessbusiness(Millions of yen)

Elimination/

Total

Consolidated

All company

Sales(1) Sales to external

178,455

4,503

7,632

190,592－

190,592

987

623

2,908

4,518

(4,518)－179,443

5,126

10,540

195,111(4,518)

190,592

Operating expenses

168,048

4,980

7,840

180,869

1,024

181,893

Operating income

11,394146

2,700

14,241(5,543)

8,698

Assets28,78012,8771,880

43,537

6,889

50,426

Depreciation

1,497

85

251

1,835

507

2,342

Capital expenditure

1,792

453

29

2,275

407

2,682

customers(2) Inter-segmental sales ortransfers
Total

Assets, Depreciation andCapital 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

Principal Product Name or Service Name

Used car sales

Purchase and sales of used automobiles through directly operated stores and the like.

Financing business

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

5,097

5,543

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

1,904

6,889

Company” item

surplus funds and head officeadministration at the parent company

Segment information by geographical location
For the current consolidated fiscal year and for the previous fiscal year over 90% of total sales and assets for each segment
were in Japan so segment information by geographical location has been omitted.
Overseas sales
For the current consolidated fiscal year, and for the previous fiscal year, overseas sales were less than 10% of consolidated
sales and have therefore been omitted.

－ 22 －

Per share information
Per Share Information
FY EndedFebruary 28, 2009
Net assets per share
Net earnings per share
Due to a net loss, figures for fully diluted
earnings per share are not provided

1,704.02
300.38FY endedFebruary 29, 2008
Net assets per share

2,122.06

Net income per share482.27

Fully diluted earnings per share482.15

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, 2009
(2,836)

Net income (loss) (¥ million)
Net income (loss) attributable to common shares(2,836)(¥ million)
Amount not attributable to common shareholders-(¥ million)
Average number of outstanding common shares
9,441
during the year (1,000 shares)
Breakdown of additional common shares used for
calculating net income per share (diluted) (1,000
2shares)Increase in number of common shares (1,000
2shares)2 types of subscription rights:
Residual securities not included in the calculation
Number of residual securitiesof the net income after adjustment for residual
securities due to the fact that these securities had from subscription rights: 52,000
sharesno dilutive effect.

－ 23 －FY endedFebruary 29, 2008
4,650
4,650
-9,6422
2
2 types of subscription rights:
Number of residual securities
from subscription rights:
52,000 sharesNon-Consolidated Balance Sheet(Millions of yen)

As ofFebruary 28, 2009
% of total

ASSETS
Current assets
Cash and deposits............................................
Accounts receivable .........................................
Merchandise.....................................................
Inventory ..........................................................
Advance payments...........................................
Prepaid expenses.............................................
Accrued credit ..................................................
Advances paid..................................................
Deferred tax assets ..........................................
Others...............................................................
Allowance for doubtful accounts .......................
Total current assets.......................................
Fixed assets
Tangible fixed assets*1
Buildings............................................................
Depreciation.....................................................
Structures ..........................................................
Depreciation.....................................................
Tools, fixtures & equipment ...............................
Depreciation ...................................................
Land ..................................................................
Construction in progress ..................................
Total tangible fixed assets............................
Intangible fixed assets
Goodwill.............................................................
Trademarks .......................................................
Software ...........................................................
Telephone subscription rights............................
Facility rights......................................................
Total intangible fixed assets ..........................
Investments and other assets
Investment securities .........................................
Shares of affiliates .............................................
Investments .......................................................
Long-term loans to affiliates...............................
Defaulted claims, etc .........................................
Long-term prepaid expenses .............................
Deposits and guarantee money.........................
Construction cooperation money .......................
Insurance reserves ............................................
Deferred tax assets ...........................................
Allowance for doubtful accounts ........................
Total investment and other assets ..............
Total fixed assets ..........................................
Total Assets...................................................

As of
February 29, 2008

1,811
2,899
6,016
44
-553
359
101
405
0
(4)
12,188% of total

27.5

2,004
5,125
4,001
41
9
396
300
280
344
96
(7)
12,592

35.6

20.0

8,438
(1,917)
1,805
(731)
2,873
(1,817)
327
124
9,103

25.7

3.2

91
7
1,673
63
9
1,845

5.2

118
2,901
0
12,983
127
11
3,537
2,530
86
164
(631)
21,82932,119

49.3
72.5

98
2,267
0
3,116
19
58
3,035
3,180
79
238
(257)
11,83722,78533.5
64.4

44,307100.0

35,378

100.0

8,841
(2,318)
1,905
(838)
2,644
(1,847)
409
67
8,863
71
6
1,285
63
-1,426－ 24 －

Non-consolidated Balance Sheet(Millions of yen)
As ofFebruary 29, 2008

As ofFebruary 28, 2009
% of total% of total

LIABILITIESCurrent liabilities
Accounts payable .........................................................
Short-term borrowing....................................................
Accrued expenses ........................................................
Accrued corporate taxes...............................................
Accrued consumption taxes .........................................
Accrued expenses ........................................................
Advances received .......................................................
Deposits received .........................................................
Reserve for bonuses ....................................................
Reserve for directors’ bonuses.....................................
Reserve for merchandize warranty ..............................
Accrued expenses for facilities.....................................
Others...........................................................................
Total current liabilities.................................................
Long-term liabilities
Long-term debt .............................................................

2,274
18,133
1,484
45
151
899
912
96
472
-354
82
42
24,94849

3,100

Guarantee deposits received........................................

825

844

Reserve for directors’ retirement benefit.......................
Reserve for loss from subsidiaries................................
Total long-term liabilities.............................................
Total liabilities ..........................................................
NET ASSETS
Shareholders’ equity
Common stock ............................................................
Capital surplus
Capital reserves ........................................................
Total capital surplus
Accumulated earnings
Profit reserve...............................................................
Other accumulated earnings
Deferred accumulated earnings...............................
Total accumulated earnings ....................................
Treasury stock.............................................................
Total shareholders’ equity........................................
Valuation and translation differences
Valuation difference on other marketable securities....
Total Valuation and translation differences.....................
Total net assets.............................................................

425
2,794
4,095
29,0449.2
65.5--3,944
15,988

11.2
45.2

4,157

9.4

4,157

11.8

4,032
4,032

9.1

4,032
4,032

11.4

56.3

39

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

－ 25 －

34.0

39

18,50818,547(11,465)

2,217
5,300
1,185
1,122
90
842
266
322
473
63
-106
52
12,043

21,83041.9

15,271(25.9)
34.5

(8)
(8)
15,26344,307

21,869(10,678)

61.8

19,381(30.2)
54.8

(0.0)
(0.0)
34.5

7
7
19,389

0.0
0.0
54.8

100.0

35,378100.0

Non-consolidated Statements of Income(Millions of yen)March 1, 2008 to
February 28, 2009

March 1, 2007 to
February 29, 2008

% of total% of total

Sales
Merchandise sales ...........................................................

132,963

Sales of other goods ........................................................

6,609

Total sales....................................................................

139,572

160,874
6,344
100.0

167,219

100.0

Cost of goods soldCost of merchandise soldInventory at start of period ...............................................

3,628

2,681

Purchases during the year ...............................................

105,849

129,123

Total..........................................................................

109,478

131,805

Inventory at end of term .................................................

6,016

3,628

Other transfers .................................................................

60

409

Net: cost of goods sold ....................................................

103,401

127,767

Other operating revenues cost of goods sold ..................

975

Total cost of sales of other goods .............................

104,376

74.8

128,303

76.7

Gross profit on sales ........................................................

35,19525.2

38,915

23.3

536

Sales, general and administrative expenses
Advertising .......................................................................

4,747

5,381

Directors’ remuneration....................................................

275

282

Salaries ............................................................................

8,089

7,452

Bonuses ...........................................................................

1,246

1,215

Addition to reserve for directors’ bonuses ........................

--

63

Addition to reserve for bonuses ......................................

472

473

Statutory welfare expenses..............................................

1,247

1,103

Contracting fees...............................................................

2,247

2,089

Travel and transportation .................................................

1,013

966

Communication expense .................................................

706

748

Consumables ...................................................................

361

419

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

2,125

2,219

Rent ...............................................................................

168

228

Land rent..........................................................................

4,541

4,475

Provision for directors’ retirement benefit.........................

48--

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

3,575

3,337

Total sales, general and administrative expenses........

30,86822.1

30,456

18.2

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

4,327

3.1

8,459

5.1

Non-operating income
Interest income ................................................................

90

70

Dividends income.............................................................

8

11

Commissions income.......................................................

--

4

Compensation received ...................................................

--

15

Insurance income .........................................................

25--

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

116

255

Total non-operating expenses ......................................

240－ 26 －

0.1

356

0.2

Non-operating expenses
Interest expense..........................................................
Addition to allowance for doubtful ...............................
accounts ..................................................................
Other ...........................................................................

106

98

371

18

107

84

Total non-operating expenses .................................

585

0.4

201

0.1

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

3,957

2.8

8,614

5.2

Extraordinary income
Gain from cancellation of insurance policy ..................

--

Total extraordinary income ......................................

--

20
--

20

0.0

Extraordinary loss
Losses on disposal of fixed assets..............................

456

326

Loss on shares in affiliate companies .........................
Legal settlements. .......................................................
Provision for directors’ retirement benefit reservefor prior years .........................................................

378
89

572
--

376

--

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

249

--

Provisions for reserve for loss from subsidiaries .........

2,794

--

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

89--

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

4,345

3.1

898

0.5

Net income (loss) before taxes....................................
Corporate income tax, inhabitants tax and enterprisetax............................................................................
Corporate tax adjustments ..........................................

(362)

(0.3)

7,735

4.7

1,708

3,307

22

135

Total taxes ...............................................................

1,731

1.2

3,442

2.0

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

(2,093)

(1.5)

4,293

2.7

－ 27 －

(3) Changes to shareholders’ equity
Changes to shareholders’ equity for the fiscal year ended March 1, 2008 to February 28, 2009
(Millions of yen)
Shareholders’ equity
Capital surplus

Accumulated earnings
Other accumulated

CapitalCapital

Total capital

Profitearnings

reserves

surplusreserve

Deferred profit

4,032

4,032

39

Total

Treasury

accumulated

stock

reserve(10,678)

shareholders’equity21,83021,869Surplus dividend(1,228)(1,228)(1,228)Net income(2,093)(2,093)(2,093)

Balance as of February 29, 2008

4,157

earnings

Total

19,381

Change during the period

Acquisition of treasury stock
Changes to items other thanshareholders’ equity during the period
Total change during the period
Balance as of February 28, 2009

―

―

―

―

―

―

―

―

―

―

―

(3,322)(3,322)(787)(4,109)

4,157

4,032

4,032

39

18,50818,547(11,465)

15,271

Valuation and translation differences
Valuation differences onother marketablesecurities

Total valuation andTotal net assets

translation differences

7

7

19,389Change during the period
Surplus dividend(1,228)Net income(2,093)Acquisition of treasury stock
Changes to items other than shareholders’

(787)
(16)

(16)

(16)

Total change during the period

(16)

(16)

(4,125)

Balance as of February 28, 2009

(8)

(8)

15,263equity during the period

(787)

―

(Millions of yen)

Balance as of February 29, 2008(787)

－ 28 －

Changes to shareholders’ equity for the fiscal year ended March 1, 2007 to February 29, 2008
(Millions of yen)
Shareholders’ equity
Capital surplus

Accumulated earnings
Other accumulated

CapitalCapital

Total capital

Profitearnings

reserves

surplusreserve

Deferred profit

Total

Treasury

accumulated

stock

earnings

reserve

4,032

4,032

39

(9,540)shareholders’equity19,406

19,445

Surplus dividend(1,744)(1,744)(1,744)

Net income

4,293

4,293

4,293

Balance as of February 28, 2007

4,157

Total

18,094

Change during the period

Acquisition of treasury stock
Disposal of treasury stock
Changes to items other thanshareholders’ equity during the period
Total change during the period
Balance as of February 29, 2008

(126)

182

56

--

--

--

--

--

--

--

--

--

--

--

--

2,423

2,423

(1,137)

1,286

4,157

4,032

4,032

39

21,83021,869(10,678)

19,381

Valuation and translation differences
Valuation differences onother marketable

Total valuation andTotal net assets

translation differences

securities
6

6

18,101

Change during the period
Surplus dividend(1,744)

Net income

4,293

Acquisition of treasury stock(1,320)

Disposal of treasury stock

56

Changes to items other than shareholders’

1

1

1

Total change during the period

1

1

1,287

Balance as of February 29, 2008

7

7

19,389equity during the period(1,320)(126)(Millions of yen)

Balance as of February 28, 2007

(1,320)－ 29 －

Material Items Forming the Basis for the Preparationof the Non-Consolidated Financial Statements
Item
1. Valuation

March 1, 2008 – February 28, 2009
(1) Bonds intended to be held to maturity.
As at rightcriteria andMarch 1, 2007 – February 29, 2008
(1) Bonds intended to be held to maturity.
Amortizing cost method (straight line)

valuation methods
for marketablesecurities(2) Shares of subsidiaries(2) Shares of subsidiaries
As at rightThe cost method using the moving average method(3) Other securities(3) Other securitiesThose with market value:Those with market value:

As at rightMarket value method based on market value as of thefinancial closing date (valuation gains or losses aretaken directly into net assets and the cost of sales
calculated using the moving average method)Those without market value:Those without market value:

As at right
2. Basis forvaluation of

Cost method using the moving average method(1) Merchandise(1) Merchandise
Vehicles: As at right

Vehicles:Other: As at right

Other:

Cost method using actual cost method

inventory andvaluation method

First in first out method applied(2) Stored goods: As at right(2) Stored goods(1) Tangible Fixed Assets(1) Tangible Fixed Assets

Final cost method applied
3. Depreciation
method for fixed

As at rightDeclining Balance Method is applied. However, forassetsbuildings (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(Additional information)
Following the revision to the Corporate Tax Law, fortangible fixed assets acquired on or before March 31,
2007, the balance of an amount equivalent to 5% of theacquisition value and the memorandum price isdepreciated using the straight line method and arerecorded as depreciation expenses for a period of five
years, starting in the consolidated fiscal year after the
fiscal year in which depreciation based on a method
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 for income taxes is immaterial.

2) Intangible Fixed Assets
The Straight Line Method is applied. However, with(2) Intangible Fixed Assets

respect to software for internal use, the Straight Line
Method based on useful lives for internal use (5 years)

As at righthas been applied.
3) Long-term prepaid expenses(3) Long Term Prepaid Expenses

The Straight Line Method is applied

As at right
4. Treatment ofDeferred assets

Share issue expenses:

Share issue expenses:
As at rightExpensed in their entirety at time of expenditure－ 30 －

Item
5. Criteria for

March 1, 2008 – February 28, 2009(i) Reserve for Doubtful Accounts

recording material

March 1, 2007 – February 29, 2008(i) Reserve for Doubtful Accounts

As at right

To prepare for the losses occurring from bad debts,

reserves

with respect to general claims the actual bad debt toloan rate is applied. Specific claims, such as thosewhere there are concerns on the probability ofrecovery, are assessed on an individual basis andestimated unrecoverable amounts are recorded.
(ii) Reserve for Bonuses(ii) Reserve for Bonuses
To prepare for the payment of bonuses to employees,
As at rightamounts are recorded based on the estimated payment
amount.

(iii) Reserve for Directors’ Bonuses(iii) Bonuses for directors

As at rightAmount based on forecasted provisional amount n
preparation for payment of bonuses to directors.

(iv) Reserve for Directors’ Retirement-----------------------

Benefit
In order to prepare for payments for the retirement
benefits for directors, the necessary allowance amount asof the balance sheet date is accounted for in accordancewith the rules for reserves for director’s retirement benefit.
(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 the consolidated period will be based on theretirement benefits for directors’ rules and will berecorded 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 would decrease by ¥48 million andnet loss before income taxes, etc., increased by ¥425
million as a result of this change.
(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 the timeof payment. However, as of the fiscal year ending
February 28, 2009, estimated future warranty payments
will be accounted for as the merchandize warranty
reserve.

－ 31 －

Item

March 1, 2008 – February 28, 2009

March 1, 2007 – February 29, 2008

This change follows the application 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 to use of the former method, operating
income and ordinary income are ¥104 million lower andnet loss before taxes, etc., increased ¥354 million as aresult of this change.
(vi) Reserve for losses of subsidiaries----------------------In order to provide for losses of subsidiaries with excess
debt judged to require a long repayment period, theequivalent amount of the excess debt has been recordedin the accounts.
6. Treatment of

As at right

Finance leases other than those lease assets whose title ismaterial lease

deemed to pass to the lessee have been accounted for intransactions

accordance with methods applied to normal lease

7. Other material
items in the
preparation of the
non-consolidated
financial accounts

transactions
Accounting Treatment of Consumption Tax:
Tax Exclusion Method is applied in the accounting
treatment of consumption tax

Accounting Treatment of Consumption Tax
As at rightMarch 1, 2008 – February 28, 2009

March 1, 2007 – February 29, 2008
Changes to the depreciation method of tangible fixed assets
From the fiscal year ended February 29, 2008, in accordance with therevision of Corporation Tax Law (Law Concerning the Partial Revisionof Income Tax No. 6, issued on March 30, 2007 and Government
Ordinance Concerning the Partial Revision of Corporation Tax Law
Order No. 83, issued on March 30, 2007), the method of depreciationof tangible fixed assets acquired after April 1, 2007 has been revised.
The effects of this change on operating income, ordinary income or net
income before adjustment for income taxes is immaterial.

－ 32 －

Per share information
Per Share Information
FY endedFebruary 28, 2009
Net assets per share
Net earnings per share

1,677.81
221.75Due to a net loss, figures for fully diluted earnings per
share are not provided

FY endedFebruary 29, 2008
Net assets per share

2,020.31

Net income per share

445.27

Fully diluted earnings per share

445.16

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, 2009
(2,093)

Net income (loss) (¥ million)
Net income (loss) attributable to common shares(2,093)(¥ million)
Amount not attributable to common shareholders-(¥ million)
Average number of outstanding common shares
9,441
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)
2 types of subscription rights:
Residual securities not included in the calculation
Number of residual securitiesof the net income after adjustment for residual
securities due to the fact that these securities had from subscription rights: 52,000
sharesno dilutive effect.

－ 33 －FY endedFebruary 29, 2008
4,293
4,293
-9,6422
2
2 types of subscription rights:
Number of residual securities
from subscription rights: 52,000
shares