Financial Results

Fiscal 2012
(March 1, 2011 to February 29, 2012)

Gulliver International Co., Ltd.
This document has been translated from the original Japanese as a guide for non-Japanese investors. It
contains forward-looking statements based on a number of assumptions made and beliefs held bymanagement in light of information currently available. Actual financial results may differ materiallydepending on a number of factors, including changing economic conditions and the pricing and productinitiatives of new and existing competitors.

SUMMARY OF FINANCIAL STATEMENTS
Results for the fiscal year ended February 29, 2012

Gulliver International Co., Ltd.

April 4, 2012
st

Stock Code: 7599
Listed exchanges: Tokyo (1 Section)
http://www.glv.co.jp/company/en
Inquiries: Executive Managing director: Yukihiro Yoshida
Chairman: Kenichi Hatori
Telephone: +81 3 5208-5503
Scheduled date of the regular shareholders’ meeting: May 24, 2012
Scheduled date for submission of the financial report: May 25, 2012 Scheduled date for distribution of dividends: May 25, 2012
1. Consolidated financial results for the fiscal year ended February 29, 2012
1) Consolidated Operating Results(Millions of yen, rounded down)

Fiscal year ended
February 29, 2012

Fiscal year ended
February 28, 2011(% 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 (%) ...........................

132,881
6,249
6,318
3,785
373.45373.42
14.5
11.0
4.7

(% change)(6.4)(21.9)(19.2)(26.4)

142,038
8,001
7,824
5,140
544.67544.39
24.9
12.2
5.6

(4.6)
51.5
56.2
--

Notes:
1. Investment gains and losses under the equity method: FY ended February 2012: ¥37 million ; FY ended February 2011: (¥8 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 29, 2012
54,64327,29249.9
2,692.16

As of February 28, 2011
59,85624,89141.6
2,454.79

Note:
1. Shareholders’ equity: FY ended February 2012 ¥27,289 million; FY ended February 2011: ¥24,883 million

3) Consolidated cash flows

Cash flow from operating activities ................................
Cash flow from investing activities .................................
Cash flow from financing activities.................................
Cash and cash equivalents at end of period..................

(Millions of yen, rounded down)

Fiscal year ended
February 29, 2012
10,665(1,580)(9,919)
7,945

Fiscal year ended
February 28, 2011
14,253
2,790(11,749)
8,869

2. Dividends

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 (%) ...................................

Fiscal year ended
February 28, 2011

Fiscal year ended
February 29, 2012

31.00
62.00
93.00
911
17.1
4.4

74.00
41.00
115.00
1,165
30.8
4.5

－ 1 －

Fiscal year ending
February 28 2013
(forecast)
41.00
41.00
82.00
29.7

3. Consolidated forecasts for the fiscal year ending February 28, 2013 (March 1, 2012 to February 28, 2013)(Millions of yen, rounded down)

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

Interim period ending
August 31, 2012
68,600(2.4%)FY ending
February 28, 2013
134,000

0.8%

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

2,600(44.3%)

5,000(20.0%)

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

2,600(44.3%)

5,000(20.9%)Net Income .................................................................

1,450(51.8%)

2,800(26.0％)

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

143.04276.22

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): Yes Decrease: 2 Companies(Name:G Trading Co.,Ltd., G-Trading Rus LLC)
2) Changes in accounting principles, procedures and presentation in the preparation of these financial statements(1) Changes in accordance with revision to accounting standards: Yes(2) Other changes: None
3) Number of shares outstanding (ordinary shares)(1) Number of shares outstanding at end of period (including treasury shares):
As of February 29, 2012: 10,688,800 shares; As of February 28, 2011: 10,688,800 shares(2) Number of treasury shares at end of period:
As of February 29, 2012: 551,965 shares; As of February 28, 2011: 551,954 shares(3) Average number of shares during period:
As of February 29, 2012: 10,136,840 shares; As of February 28, 2011: 9,438,227 shares－ 2 －Reference: Outline of Non-Consolidated Financial Results
1. Non-consolidated financial results for the fiscal year ended February 29, 2012
1) Non-consolidated operating results(Millions of yen, rounded down)

Fiscal year ended
February 28, 2011

Fiscal year ended
February 29, 2012(% change)

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

130,138
5,544
5,622
3,674
362.46362.43(2.7)(10.3)(9.5)
5.1(% change)

133,716
6,178
6,214
3,496
370.48370.28

(2.0)
17.9
16.0
90.0

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 29, 2012
Total assets ...................................................................
Net assets......................................................................
Shareholders’ equity ratio (%) .......................................
Net assets per share (¥) ................................................

As of February 28, 2011

51,77026,20650.6
2,585.12

55,461
23,91643.1
2,358.66

Note:
1. Shareholders’ equity: FY ended February 2012: ¥26,204 million; FY ended February 2011: ¥23,909 million

2. Non-consolidated forecasts for the fiscal year ending February 28, 2013 (March 1, 2012 to February 28, 2013)(Millions of yen, rounded down)

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

Interim period ending
August 31, 2012
68,000(0.3%)
2,500(40.6%)
1,400(52.9%)
138.11

FY ending
February 28, 2013
132,800
2.0%
4,800(14.6%)
2,700(26.5%)
266.36Percentage 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.

－ 3 －1. Operating results(1) Analysis of consolidated operating results
The used car auction price in the first half of the current year rose significantly due to the influence of theGreat East Japan Earthquake. However, the used car auction price declined considerably in the second half ofthe same year. Under these circumstances, the profitability of wholesale used car auctions to used-car sellers
fell in the second half.
Consumer spending remained sluggish. Although the car sales volume at Gulliver-directly operated storescontracted from the same term last year to the third quarter, the fourth quarter saw an increase over theprevious year. However, total retail sales volume of cars for the whole financial year fell short of the previousterm.
As regards financing operations, operations have been scaled down since the previous term. Accordingly, theoperating income of the consolidated subsidiary, G-One Financial Services Co., Ltd. decreased by 1,176
million yen compared to 339 million yen in the previous term. Accounts receivable (financial credit) in financing
as of the end of the current term decreased by 3,530 million yen compared to 9,655 million yen at the end of
the previous term.
We posted a “reversal of losses in disposal of operations” of 779 million yen as extraordinary profit. This wasposted in the second quarter, reflecting the need for power saving issues etc. after the Great East Japan
Earthquake. Accordingly, we decided to review the planned relocation/integration of functions associated with
the integration of group companies. This involved part of the “loss in disposal of operations” posted in theprevious term (fiscal year ended February 28, 2011) and in expectation of the relocation/integration inquestion.
We posted the “effect of Accounting Standard for Asset Retirement Obligations”, “disaster loss”, “loss onretirement of fixed assets” and so on as extraordinary losses.
The impact of the transfer of stock of a subsidiary in the previous term, etc., meant a fall in corporate tax, etc.
in the previous term and a subsequent decline in net income.
Due to the above, the consolidation of the current term includes sales was 132,881 million yen (down 6.4%
from the same term last year), operating income was 6,249 million yen (down 21.9% from the same term lastyear), ordinary income was 6,318 million yen (down 19.2% from the same term last year) and net income was
3,785 million yen (down 26.4% from the same term last year).

－ 4 －Outlook for the fiscal year ending February 28, 2013
We will continuously enhance the retail sales of used cars. With ongoing and thorough human resource
training, opening new large-scale showrooms and so on, we expect the total number of vehicles retailed via
Gulliver-direct outlets to increase in the next term. However, the eco-car subsidy system for new cars is
expected to impact on the immediate used car market in Japan, and we forecast uncertainty for the used car
auction market.
With the above in mind, as the outlook for the full fiscal year, we expect sales of 134,000 million yen (up 0.8%
from the same term last year), operating income of 5,000 million yen (down 20.0% from the same term lastyear), ordinary income of 5,000 million yen (down 20.9% from the same term last year) and net income of
2,800 million yen (down 26.0% from the same term last year).

(2) Analysis of financial position[Assets, liabilities and net assets]
1) Current assets
The balance of current assets at the end of the period under review decreased by 5,413 million yen
compared to the end of the previous fiscal period to 30,925 million yen.
The primary contributing factor included a 6,296 million yen decrease in accounts receivable.

2) Fixed assets
The balance of fixed assets at the end of the period under review increased by 201 million yen compared tothe end of the previous fiscal period to 23,718 million yen.
Major factors include an increase in tangible fixed assets (up 969 million yen from the end of the same term
last year) and a decline in long-term loans receivable to business acquaintances (down 990 million yen fromthe end of the same term last year), meaning we recorded no significant increase or decrease.

3) Current liabilities
The balance of current liabilities at the end of the period under review decreased by 6,638 million yen
compared to the end of the previous fiscal period to 16,060 million yen.
The primary contributing factor included a 6,517 million yen decrease due to debt repayment compared tothe previous year.

4) Long-term liabilities
The balance of long-term liabilities at the end of the period under review decreased by 975 million yen
compared to the end of the previous fiscal period to 11,290 million yen.
The major factor included a decrease due to repayment of debt (down 2,000 million yen from the end of thesame term last year).

－ 5 －5) Net assets
The balance of net assets at the end of the period under review increased by 2,401 million yen compared tothe end of the previous fiscal period to 27,292 million yen.
The major factor included an increase in retained earnings (up 2,938 million yen from the end of the same
term last year).

[Cash flow position]
For the current consolidated account period, the cash flow from operating activities was positive, but negativefrom investment and financing activities. Overall cash flow was a negative 836 million yen.
The balance of cash and cash equivalents at the end of the current consolidated account period was 7,945
million yen.

(Cash flow from operating activities)
Cash and cash equivalents generated from operating activities (hereinafter referred to as “cash”) was 10,665
million yen.
This primarily included net income before adjustment for taxes of 6,596 million yen, a 6,544 million yen
decrease in accounts receivable and a 1,689 million yen increase in inventory assets.

(Cash flow from investment activities)
The cash used for investing activities was 1,580 million yen. This was mainly to cover the expenses for thepurchase of tangible fixed assets.

(Cash flow from financing activities)
Net cash used in financing activities was 9,919 million yen, largely the result of outflows for the repayment ofloans.

－ 6 －Trends in shareholders’ equity and cash flow indicators are as follows:
FY 2008

FY 2009

FY 2010

FY 2011

FY 2012Equity ratio (%)

40.4

26.9

24.1

41.6

49.9

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

80.6

19.8

44.2

61.4

58.7

Debt redemption years

12.7

--

--

1.4

1.0

Interest coverage ratio

9.6

--

--

80.8

66.7

Notes:
1. Breakdown of each indicator
Equity ratio = shareholders’ equity/total assets
Shareholders’ equity (market price base) ratio = Market capitalization/Total assets
Debt redemption years = Interest bearing debt/Operating cash flow
Interest coverage ratio = Operating cash flow/Interest payments
2. Each index is calculated from consolidated figures
3. Market capitalization is calculated using the formula: closing share price at period end x number of shares issued (excluding
treasury stock).

(3) Basic policy concerning distribution of profit and dividend for current and next term
We have identified the return of profit to investors as a key management issue and also emphasize ourdividend payout ratio. We are focused on ensuring the performance-based return of profit. In specific terms,
we are targeting a dividend payout ratio of about 30% of consolidated current net income.
Given the above basic policy and target, our expected dividends may be amended if the consolidated net
income is not as expected.
We would like to set the cash dividend per share of the current term, based on the above, as 115 yen on a
yearly basis (74 yen at the end of the second quarter, 41 yen at the end of the year).
In accordance with the above policies and targets, assuming consolidated net income of 2,800 million yen,
we plan a cash dividend per share for the next term of 82 yen on a yearly basis (41 yen at the end of thesecond quarter, 41 yen at the end of the year).

－ 7 －

2.

Management Policy(1) Basic management policy
Gulliver has adopted ‘Growing together’ as its corporate philosophy and, under the principle of coexistence
and mutual prosperity, the company is striving for continued growth together with all those involved with theGroup, including customers, employees, partners and shareholders. Under this philosophy, Groupmanagement is making every effort to create an attractive company that is worthy of support from customers.
We also aim to bring about a revolution in the distribution of cars, and to create a “car-life” concept to satisfy
our customers.
(2) Management targets
Since its establishment in 1994, Gulliver has been a car dealership specialist that has expanded its businessprimarily as a wholesale seller of used vehicles through used car auctions. In recent years, we haveendeavored to strengthen our retail business by selling cars directly to ordinary consumers in addition to ourwholesale business. Aiming to further raise corporate value, Gulliver is committed to a medium-term target of
100,000 retail car sales through directly managed stores.

(3) Mid- to long-term management strategy
In order to achieve 100,000 used car retail sales through our directly managed stores, Gulliver is centralizing
its management resources and promoting initiatives that include:
・ Improving our sales force and services by strengthening employee training
・ Strengthening community-based area marketing・ Winning more repeat and referral customers by improving customer satisfaction
・ Enhancing brand power and recognition
・ Building new sales channels such as through large scale facilities(4) Tasks ahead
We are creating a management strategy that aims to rapidly expand retail sales while maintaining
profitability, and we plan to improve customer satisfaction and our ability to attract customers through moretargeted management activities and stronger employee training.

－ 8 －Consolidated Balance Sheets
Millions of yen
As of February 29, 2012

As of February 28, 2011

AssetsCurrent assets

8,472
10,6838,640-1,3201,873(65)30,925

Cash and deposits............................................
Notes and accounts receivable-trade...............
Products...........................................................
Operating loans................................................
Deferred tax assets ..........................................
Other ................................................................
Allowance for doubtful accounts ......................
Total current assets

8,896

16,979
7,004
1,234
1,151
1,625

(552)
36,338

Noncurrent assets
Property, plant and equipment

11,901(4,347)
7,553
370
(210)
160
2,279
(1,830)
448
218
22
8,403

10,133(3,670)
6,462
557
(290)
267
2,309
(1,836)
472
218
13
7,434

5
939
15
961

27
909
17
954

Total noncurrent assets .......................................

14
768
7,993
2,894
2,840
235
257
(652)
14,35323,718

14
805
8,983
2,926
2,814
433
251
(1,101)
15,12823,517

Total assets........................................................

54,64359,856

Buildings and structures................................
Accumulated depreciation.............................
Buildings and structures, net............................
Vehicles..........................................................
Accumulated depreciation ............................
Vehicles, net.....................................................
Tools, furniture and fixtures ...........................
Accumulated depreciation ............................
Tools, furniture and fixtures, net .......................
Land .................................................................
Construction in progress ...................................
Total property, plant and equipment
Intangible assets
Goodwill ...........................................................
Software...........................................................
Other................................................................
Total intangible assets
Investments and other assets
Investment securities .......................................
Stocks of subsidiaries and affiliates .................
Long-term loans receivable ..............................
Lease and guarantee deposits .........................
Construction assistance fund receivables ........
Deferred tax assets...........................................
Other .................................................................
Allowance for doubtful accounts .......................
Total investments and other assets...................

－ 9 －Consolidated Balance Sheets
Millions of yen
As of February 29, 2012

As of February 28, 2011

Liabilities
Current liabilities

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

2,912
2,000
2,130
2,532
232
489
1,810
-3,951

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

16,060

1,016
3,912
22,698

9,000
807
461
1,016
5
11,29027,351

11,000816442-612,26534,964

4,157
4,032
23,021(3,975)27,235

4,157
4,032
20,083(3,975)24,297

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

54
54
227,292586
586
7
24,891

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

54,64359,856

Accounts payable-trade....................................
Short-term loans payable.................................
Accounts payable-other ...................................
Income taxes payable......................................
Deposits received ............................................
Provision for bonuses ......................................
Provision for merchandise warranties..............
Provision for loss on business liquidation ........

3,806

8,517
2,278
918
416
496
1,336

Noncurrent liabilities
Long-term loans payable ..............................
Long-term guarantee deposited....................
Provision for directors' retirement benefits.......
Asset retirement obligations...........................
Other ............................................................
Total noncurrent liabilities ................................
Total liabilities ..................................................
Net assets
Shareholders' equity
Capital stock ................................................
Capital surplus .............................................
Retained earnings........................................
Treasury stock .............................................
Total shareholders' equity............................
Valuation and translation adjustments
Foreign currency translation adjustmen...........
Total valuation and translation adjustments.....
Subscription rights to shares ...........................

－ 10 －

Consolidated Statements of Income
March 1, 2011 to
February 29, 2012

(Millions of yen)March 1, 2010 to
February 28, 2011

132,881
99,892
32,98926,7396,249

142,038
105,565
36,47328,472
8,001

133
-37
26
51
249

110
9
-10
22
153

159
4
16
180
6,318

176
103
51
330
7,824

-56

1,157
--

779

--

114
950

46
1,203

134
16
--101

338
11
2,464
410
--

360

--

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

59
672
6,596
2,775
34
2,810
3,785

58
3,284
5,744
827
223
603
--

Net income

3,785

5,140

Sales ...........................................................................
Cost of sales................................................................
Gross profit .................................................................
Sales general and administrative expenses................
Operating income .......................................................
Non-operating income
Interest received ......................................................
Depreciation of negative goodwill ............................
Equity in earnings of affiliates
Proceeds from insurance .........................................
Other .......................................................................
Total non-operating income
Non-operating expenses
Interest paid ............................................................
Exchange related losses.........................................
Other.......................................................................
Total non-operating expenses ....................................
Ordinary income .........................................................
Extraordinary profit
Gain on liquidation of subsidiary .............................
Reversal of allowance for doubtful accounts...........
Reversal of provision for loss on businessliquidation ...............................................................
Other.......................................................................
Total extraordinary profit .............................................
Extraordinary losses
Loss on disposal of fixed assets .............................
Loss on adjustment to affiliates...............................
Loss on adjustments to operations .........................
Provision for doubtful accounts ...............................
Loss on disaster......................................................
Loss on adjustment for changes of accounting
standard for asset retirement obligations ................
Other.......................................................................

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

－ 11 －

Consolidated statements of comprehensive income
March 1, 2011 to
February 29, 2012
Income before minority interests(Millions of yen)March 1, 2010 to
February 28, 2011

3,785

--

Foreign currency translation adjustment

(0)

--

Total other comprehensive income

(0)

--

3,785

--

3,785

--

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent－ 12 －

Consolidated Statements of Cash flows
March 1, 2011 to
February 29, 2012

(Millions of yen)March 1, 2010 to
February 28, 2011

6,596
1,192
21
-(4)
(80)
474
18
(133)
159
4
(779)

5,744
1,203
21
(9)
(38)
18
599
36
(110)
176
68
--

360

--

134
--6,544(1,689)
(872)
1,234
(439)
(811)
11,927135(159)(1,237)
10,665338(1,157)
891
3,563
3,362
(209)
811
276
(76)
15,510110(176)(1,190)14,253(1,111)(403)(3,100)
3,100
(428)
858
(222)
233
(269)
221

(946)
(399)
--(887)
4,998
(74)
67
(100)
239

--

(109)

(1,900)1,400
41(1,580)--4
2,790

I. Cash flow from operating activities
Income (loss) before taxes, etc.............................................................
Depreciation..........................................................................................
Depreciation of goodwill........................................................................
Depreciation of negative goodwill .........................................................
Increase in reserve for bonuses ...........................................................
Increase (decrease) in allowance for doubtful accounts ......................
Additional reserve for merchandize warranty .......................................
Increase (decrease) in allowance for directors’ retirement benefit ...
Interest and dividends received ............................................................
Interest paid ..........................................................................................
Gain (loss) on foreign exchange...........................................................
Reversal of loss on business liquidation .............................................
Loss on adjustment for changes of accounting standard for asset
retirement obligations ...........................................................................
Loss on disposal of fixed assets ...........................................................
Loss (gain) on sales of stocks of subsidiaries and affiliates .................
Loss on liquidation of business.............................................................
Increase (decrease) in accounts receivable .........................................
Increase (decrease) in inventory assets ...............................................
Increase (decrease) in accounts payable .............................................
Increase (decrease) in operating loans ................................................
(Increase) decrease in accrued consumption tax .................................
Other.....................................................................................................
Subtotal.................................................................................................
Interest and dividends received ............................................................
Interest paid ..........................................................................................
Corporate taxes paid ............................................................................
Cash flow from operating activities ..................................................
II. Cash flow from investing activities
Payments for acquisition of tangible fixed assets .................................
Payments for acquisition of intangible fixed assets ..............................
Purchase of short-term investment securities.......................................
Proceeds from redemption of securities ...............................................
Amounts lent.........................................................................................
Proceeds from repayment of loans.......................................................
Payment on difference in deposits and guarantee payments...............
Proceeds from return of deposits and guarantee payments.................
Payments for repayment of construction cooperation fund ..................
Proceeds from return of construction cooperation fund........................
Payments for sales of investments in subsidiaries resulting in change
in scope of consolidation.....................................................................
Payments into time deposits.................................................................
Proceeds from withdrawal of time deposits..........................................
Other.....................................................................................................
Cash flow from investing activities....................................................

－ 13 －

Consolidated Statements of Cash flows (continued)
March 1, 2011 to
February 29, 2012

(Millions of yen)March 1, 2010 to
February 28, 2011--(8,516)-(0)(1,403)(9,919)
(1)
(836)
8,869

(25,499)
11,000
(658)
4,038
(0)
(629)
(11,749)
(11)
5,283
3,586

(87)

--

7,945

8,869

III. Cash flow from financing activities
Net increase (decrease) in short-term borrowings .................................
Proceeds from long-term borrowings .....................................................
Repayment of long-term debt.................................................................
Proceeds from sales of treasury stock ...................................................
Purchase of treasury stock.....................................................................
Dividend payments.................................................................................
Cash flow from financing activities....................................................
IV. Cash and cash equivalents currency translation differences........
V. (Decrease) increase in cash and cash equivalents..........................
VI. Cash and cash equivalents at beginning of period ........................
VII. Increase (decrease) in cash and cash equivalents from change
in scope of consolidation.................................................................
VIII. Cash and cash equivalents at end of period..................................

－ 14 －

Changes in key matters as the basis for the preparation of consolidated financial statements
March 1, 2010 - February 28, 2011-----------------------------------------------------March 1, 2011 - February 29, 2012

(Application of the “Accounting Standard for the
Equity Method of Accounting for Investments” and“Practical Solution on Unification of Accounting
Policies Applied to Associates Accounted for Using
the Equity Method”)
We have applied the “Accounting Standard for the
Equity Method of Accounting for Investments” (ASBJ
Statement No. 16, published on March 10, 2008) andthe “Practical Solution on Unification of Accounting
Policies Applied to Associates Accounted for Using
the Equity Method” (report on the handling thereof
No. 24, as of March 10, 2008) since the current
consolidated fiscal year. Our pre-tax operating profit,
current profit and current net income were notsubject to influence of the same.

(Application of the “Accounting Standards for Asset
Retirement Obligations” and so on)
We have applied the “Accounting Standards for
Asset Retirement Obligations” (ASBJ Statement No.
18 as of March 31, 2008) and the ”Guideline on
AccountingStandards

for

Asset

Retirement

Obligations” (ASBJ Guidance No. 21, March 31,2008) since the current consolidated fiscal year. This
will have no more than a minor impact on ouroperating and current profit and current net income
before adjustment for taxes decreased by 407 million
yen. Also, the change in asset retirement obligations
due to the application of the accounting standards
and so on is 919 million yen.

－ 15 －

Non-Consolidated Balance Sheets(Millions of yen)
As of February 29, 2012

As of February 28, 2011ASSETS
Current assets
Cash and deposits .................................

8,212

8,592

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

997

2,947

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

8,615

6,933

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

70

61

585

492

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

1,312

964

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

561

--

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

557

797

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

(141)

(81)

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

20,77020,708

Buildings ................................................

9,780

8,261

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

(3,193)(2,665)

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

6,587

5,595

Fixed assets
Tangible fixed assets

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

2,118

1,861

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

(1,153)(1,001)

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

965

859

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

368

542

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

(209)

(280)

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

158

261

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

2,274

2,285

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

(1,829)(1,821)Tools, fixtures and equipment (net) ....

444

464

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

218

218

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

21

13

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

8,395

7,412

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

527

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

0

1

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

938

864

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

14

15

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

959

907

－ 16 －

(Millions of yen)
As of February 29, 2012

As of February 28, 2011

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

14

14

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

2,023

2,022

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

7,217

7,703

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

6,303

10,969Defaulted claims, etc .............................

67

36

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

67

50

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

2,888

2,728

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

2,840

2,814

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

223

439

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

106

98

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

(106)

(444)

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

21,64531,00026,432
34,753

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

51,77055,461－ 17 －

(Millions of yen)
As of February 29, 2012

As of February 28, 2011

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

2,892

3,604

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

2,000

8,516

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

1,043

1,045

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

2,460

618

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

96

530

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

789

724

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

1,902

1,019

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

232

408

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

489

463

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

1,810

1,336

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

60

49

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

470

439

Provision for loss business liquidation ...........

--

498

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

27

29

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

14,27819,285Long-term borrowing .....................................

9,000

11,000Long-term guarantee deposits received ........

807

816

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

461

442

Long-term liabilities

Asset retirement obligations ..........................

1,016

--

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

11,285

12,259Total liabilities..............................................

25,56331,545

4,157

4,157

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

4,032

4,032

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

--

--

4,032

4,032

39

39

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

21,951

19,655NET ASSETS
Shareholders’ equity
Paid in capital ................................................
Capital surplus

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

21,99019,695

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

(3,975)(3,975)

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

26,20423,909Subscription rights to shares .........................

2

7

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

26,20623,916

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

51,77055,461－ 18 －

Non-Consolidated Statements of Income
March 1, 2011 to
February 29, 2012
Sales
Merchandise sales......................................................
Sales of other goods...................................................
Total sales ..............................................................
Cost of sales
Cost of merchandise soldInventory at start of period ..........................................
Purchases during the year..........................................
Total ....................................................................
Inventory at end of term ............................................
Other transfers............................................................
Net: cost of goods sold ...............................................
Other operating revenues cost of goods sold .............
Total cost of sales of other goods........................
Gross profit on sales...................................................
Sales, general and administrative expenses
Advertising..................................................................
Directors’ remuneration ..............................................
Salaries ......................................................................
Bonuses .....................................................................
Addition to reserve for bonuses ................................
Statutory welfare expenses ........................................
Contracting fees .........................................................
Travel and transportation............................................
Communication expense ............................................
Consumables..............................................................
Depreciation ...............................................................
Rent ..........................................................................
Land rent ....................................................................
Provision for directors’ retirement benefit ...................
Allowance for doubtful accounts .................................
Other ..........................................................................
Total sales, general and administrative expenses ..
Operating income...........................................................
Non-operating income
Interest income ...........................................................
Insurance income ....................................................
Other ..........................................................................
Total non-operating income ....................................
Non-operating expenses
Interest expense .........................................................
Other ..........................................................................
Total non-operating expenses.................................
Ordinary income .........................................................

－ 19 －(Millions of yen)March 1, 2010 to
February 28, 2011

123,9546,183
130,138

127,030
6,686
133,716

6,933
99,743
106,677
8,615
179
97,883660
98,54331,5959,450
98,039107,489
6,933
338
100,217
1,056
101,273
32,442

3,685
182
7,435
1,361
489
1,299
1,124
897
559
425
1,200
160
4,428
33
28
2,738
26,050
5,544

3,839
192
7,107
1,300
463
1,209
2,088
776
501
383
1,148
146
4,401
36
66
2,603
26,264
6,178

183
26
37
247

198
10
21
230

159
10
170
5,622

173
21
194
6,214

March 1, 2011 to
February 29, 2012

(Millions of yen)March 1, 2010 to
February 28, 2011

Extraordinary profit
Reversal of allowance for doubtful receivables ....

60

14

Reversal of provision for loss on business of
subsidiaries and affiliates.......................................

--

14

Gain on extinguishment of tie-in shares.................

316

--

Reversal of provision for loss on businessliquidation...............................................................

779

--

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

73--

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

1,229

28

Loss on disposal of fixed assets ............................

114

291

Loss on sales of stocks of subsidiaries andaffiliates ...............................................................

--

1,433

Loss on liquidation of business ..............................

--

779

Loss on adjustment for changes of accounting
standard for asset retirement obligations...............

360

--

Loss on disaster .....................................................

101

--

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

73

166

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

649

2,670

Income before taxes, etc........................................

6,202

3,572

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

2,652

541

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

(124)

(466)

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

2,528

75

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

3,674

3,496

Extraordinary losses－ 20 －