For the Fiscal Year Ended March 31, 2014

Annual Select® 2014

G-7 HOLDINGS Inc.
1-6, Yasakadai 3-chome, Suma-ku, Kobe-shi, Hyogo(Securities Code: 7508)+81-78-797-7700

Corporate Profile
The G-7 Group has achieved strong and steady growth of its Store Franchising Business, which initially centeredon franchise stores under the worldwide AUTOBACS brand of auto parts and accessories, and then made rapid
progress with the development of Business Supermarkets.
Today, the G-7 Group operates 66 AUTOBACS stores in and outside Japan and 106 Business Supermarkets,making it the largest affiliated franchisee for both chains.
The G-7 Group has expanded to a wide range of businesses including the AUTOBACS/Car related Business, theBusiness Supermarket/Quality Food Business, the Motorcycle Parts and Accessories Business, the AgriculturalBusiness, and Overseas Business.
In order to be a company that is worthy of the continued support of customers and shareholders, we will remain
aggressive about entering new markets as we endeavor to sustain growth over the long term.
The G-7 Group has been opening new stores when the timing is right and engaging in M&A opportunities,
premised on the aim of achieving our targets of ¥100 billion net sales and ¥4 billion operating income by thefiscal year ending March 31, 2016, our 40th year in business. Going forward, we will continue to take onchallenges geared toward attaining further growth, through initiatives that include expanding sales channels bymaking the most of Group synergies and ramping up store openings in Southeast Asia.

Autobacks Malaysia first store

Business Supermarket Shin-tatsuno

I. Summary of Selected Financial Data (Consolidated)
35th term

36th term

37th term

38th term

39th term

Fiscal year ended
March 31, 2010

Fiscal year ended
March 31, 2011

Fiscal year ended
March 31, 2012

Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Net sales(Millions of yen)(Thousands of U.S. dollars)¥67,078¥71,457¥76,130¥82,623¥88,178$881,780

2,247

2,591

2,250

2,933

3,139

31,390

871

701

722

1,345

1,541

15,410

–

702

736

1,312

1,499

14,990

8,648

8,936

9,502

10,558

11,599115,990

25,987

27,69628,45530,401

32,057

320,570695.13734.25780.73867.54953.059.5305

66.47

56.94

59.38

110.51

126.66

1.2660

–

–

–

–

–

–

33.3

32.3

33.4

34.7

36.2

10.25

7.98

7.84

13.41

13.92

9.48

7.71

7.12

5.27

5.96

4,062

2,914

1,914

3,626

3,546

35,460(745)(1,888)(3,103)(1,722)(2,096)(20,960)(1,269)

(818)

235

(692)

(619)

(6,190)¥5,806¥6,021¥5,072¥6,299¥7,183$71,830

1,140[1,702]

1,190[1,813]

1,238[2,220]1,371[2,422]

1,406[2,455]

Ordinary income(Millions of yen)(Thousands of U.S. dollars)

Net income(Millions of yen)(Thousands of U.S. dollars)

Comprehensive income(Millions of yen)(Thousands of U.S. dollars)

Net assets(Millions of yen)(Thousands of U.S. dollars)

Total assets(Millions of yen)(Thousands of U.S. dollars)

Net assets per share(Yen)(U.S. dollars)

Net income per share(Yen)(U.S. dollars)

Diluted net income per share(Yen)(U.S. dollars)

Equity ratio(%)

Return on equity (ROE)(%)

Price earnings ratio (PER)(Times)Net cash provided by (used in)operating activities(Millions of yen)(Thousands of U.S. dollars)

Net cash provided by (used in)investing activities(Millions of yen)(Thousands of U.S. dollars)

Net cash provided by (used in)financing activities(Millions of yen)(Thousands of U.S. dollars)

Cash and cash equivalents at
end of period(Millions of yen)(Thousands of U.S. dollars)

Number of employees[Separately, average numberof temporary employees](Persons)

Notes: 1.
2.
3.

U.S. dollar amounts are the yen equivalent, calculated for convenience only, at a rate of ¥100.00 = U.S. $1.
Net sales do not include consumption taxes.
Diluted net income per share is not provided since there are no potential shares.

-1-II. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of
U.S. dollars)*(Millions of yen)
As ofMarch 31, 2013

As ofMarch 31, 2014

As ofMarch 31, 2014

6,299
1,844
4,450
341
823
(7)
13,751

7,183
2,084
4,492
430
902
(4)
15,08971,83020,84044,920
4,300
9,020
(40)
150,890

14,770(8,317)
6,452
982
(609)
373
3,934
42
2,715
(1,839)875
11,67815,625(9,002)
6,623
1,137
(690)
447
3,979
57
2,951
(2,090)861
11,969156,250(90,020)
66,23011,370(6,900)4,470
39,790570
29,510(20,900)
8,610
119,690

291
266
558

197
216
414

1,970
2,160
4,140

94
3,332
725
262
(1)
4,414
16,65030,401

93
3,416
766
326
(18)
4,584
16,96832,057930
34,160
7,660
3,260
(180)
45,840169,680
320,570

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets* Please refer to the note 1 on page 1.

-2-

(Thousands of
U.S. dollars)*(Millions of yen)
As ofMarch 31, 2013

As ofMarch 31, 2014

As ofMarch 31, 2014

4,097
4,800
732
468
135
3,002
13,236

4,483
6,500
839
596
200
3,024
15,64544,83065,000
8,390
5,960
2,000
30,240156,450

4,000
49
523
638
634
–
761
6,606
19,842

2,200
49
–
654
677
567
663
4,812
20,45822,000
490
–
6,540
6,770
5,670
6,630
48,120204,580

1,785
2,717
7,208
(612)
11,099

1,785
2,717
8,287
(612)
12,17817,85027,17082,870(6,120)121,780

4

6

60

(529)
(15)
–
(540)
10,55830,401

(529)
(59)
4
(578)
11,59932,057(5,290)(590)
40(5,780)115,990
320,570

Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Income taxes payable
Provision for bonuses
Provision for point card certificates
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities for land revaluation
Provision for retirement benefits
Provision for directors’ retirement benefits
Asset retirement obligations
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets* Please refer to the note 1 on page 1.

-3-

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Thousands of
U.S. dollars)*(Millions of yen)
Fiscal year ended
March 31, 2013
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Commission fee
Co-sponsor fee
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of non-current assets
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on closing of stores
Loss on business withdrawal
Loss on valuation of investment securities
Provision of allowance for doubtful accounts
Impairment loss
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income before minority interests
Net income* Please refer to the note 1 on page 1.

-4-

Fiscal year ended
March 31, 2014

Fiscal year ended
March 31, 2014

82,62360,33822,285
19,662
2,622

88,17864,487
23,691
20,7902,900

881,780
644,870
236,910
207,900
29,000

1
0
190
45
74
112
425

1
0
187
114
6
63
374

10
0
1,870
1,140
60
630
3,740

50
33
30
114
2,933

48
51
36
136
3,139

480
510
360
1,360
31,390

16
25
41

–
–
–

–
–
–

52
–
8
–
272
333
2,640
1,311
(15)
1,295
1,345
1,345

–
52
5
17
147
221
2,917
1,510
(134)
1,376
1,541
1,541

–
520
50
170
1,470
2,210
29,17015,100(1,340)13,76015,41015,410(Consolidated Statements of Comprehensive Income)(Thousands of
U.S. dollars)*(Millions of yen)
Fiscal year ended
March 31, 2013
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to minority
interests* Please refer to the note 1 on page 1.

-5-

Fiscal year ended
March 31, 2014

Fiscal year ended
March 31, 2014

1,345

1,541

15,410

4
(37)
(32)
1,312

2
(44)
(42)
1,499

20
(440)
(420)
14,990

1,312

1,499

14,990–––(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2013
(Millions of yen)
Shareholders’ equity

Balance at beginning of current
periodCapital stock

Capital surplus

1,785

2,717

Retained earnings
6,119

Treasury shares(612)

Total shareholders’equity10,010Changes of items during period
Dividends of surplus

(255)

(255)

Net income

1,345

1,345

Purchase of treasury shares

(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

–

–

1,089

(0)

1,089

1,785

2,717

7,208

(612)

11,099

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of current
period(0)

Revaluation reserve
for land(529)

Foreign currencytranslation
adjustment
22

Total accumulated
othercomprehensive
income(507)

Total net assets

9,502

Changes of items during period
Dividends of surplus(255)

Net income

1,345

Purchase of treasury shares
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

(0)
4

–

(37)

(32)

(32)

4

–

(37)

(32)

1,056

4

(529)

(15)

(540)

10,558-6-

Fiscal year ended March 31, 2014
(Millions of yen)
Shareholders’ equity

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Capital stock

Capital surplus

1,785

2,717

Retained earnings

Total shareholders’equityTreasury shares

7,208

(612)

11,099

(0)
1,785

2,717

(0)

7,208

(612)

11,099Changes of items during period
Dividends of surplus

(462)

(462)

Net income

1,541

1,541

Purchase of treasury shares

(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

–

–

1,079

(0)

1,079

1,785

2,717

8,287

(612)

12,178

Accumulated other comprehensive income

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Valuationdifference on
available-for-s
ale securities

Revaluation
reserve for land

Foreign currencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

4

(529)

(15)

–

(540)

Total net assets

10,558
(0)

4

(529)

(15)

–

(540)

10,558Dividends of surplus

–

(462)

Net income

–

1,541

Purchase of treasury shares–(0)Changes of items during period

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

2

–

(44)

4

(37)

(37)

2

–

(44)

4

(37)

1,041

6

(529)

(59)

4

(578)

11,599-7-

Fiscal year ended March 31, 2014
(Thousands of U.S. dollars)*Shareholders’ equity

Balance at beginning of current
periodCumulative effects of changes
in accounting policies

Capital stock

Capital surplus

17,85027,170Retained earnings

Total shareholders’equityTreasury shares

72,080(6,120)110,990(0)Restated balance

17,85027,170(0)72,080(6,120)110,990

Changes of items during period
Dividends of surplus(4,620)(4,620)Net income

15,41015,410Purchase of treasury shares

(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period––10,790(0)

10,79017,85027,17082,870(6,120)121,780

Accumulated other comprehensive income
Valuationdifference on
available-for-s
ale securities

Revaluation
reserve for land

Foreign currencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income40(5,290)(150)–(5,400)

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Total net assets

105,580(0)40(5,290)(150)–(5,400)105,580

Dividends of surplus–(4,620)Net income–

15,410Purchase of treasury shares–(0)Changes of items during period

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

20

–

(440)

40

(370)

(370)

20

–

(440)

40

(370)

10,41060(5,290)(590)

40(5,780)115,990* Please refer to the note 1 on page 1.

-8-

(4) Consolidated Statements of Cash Flows(Thousands of
U.S. dollars)*(Millions of yen)
Fiscal year ended
March 31, 2013
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Amortization of goodwill
Gain on bargain purchase
Impairment loss
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for retirement
benefits
Increase (decrease) in provision for directors’
retirement benefits
Loss on withdrawal from business
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors’
bonuses
Increase (decrease) in provision for point cardcertificates
Increase (decrease)in net defined benefit liability
Interest and dividend income
Interest expenses
Loss on retirement of property, plant and equipment
Loss (gain) on valuation of investment securities
Loss (gain) on sales of non-current assets
Decrease (increase) in guarantee deposits
Foreign exchange losses (gains)
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities* Please refer to the note 1 on page 1.

-9-

Fiscal year ended
March 31, 2014

Fiscal year ended
March 31, 2014

2,640
1,470
138
(25)
272

2,917
1,409
93
–
147

29,17014,090
930
–
1,470

(2)

14

140

50

–

–

29

16

160

–
32

52
127

520
1,270

42

–

–

9

65

650

–
(1)
50
63
8
(16)
(31)
(74)

51
(2)
48
61
5
–
(49)
(6)

510
(20)
480
610
50
–
(490)
(60)

(100)

(239)

(2,390)

(430)
(13)

(40)
(83)

(400)
(830)

402

386

3,860

94
78
33
4,723
1
(51)
(1,047)
3,626

20
78
(73)
5,001
2
(49)
(1,407)
3,546

200
780
(730)
50,01020(490)(14,070)
35,460(Thousands of
U.S. dollars)*(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Fiscal year ended
March 31, 2014(16)
(1,548)(26)(1,867)(260)(18,670)

82

–

–

(44)
–

(15)
36

(150)
360

7

–

–

(25)
(201)

(100)
(136)

(1,000)(1,360)

83

38

380

12
(71)
(1,722)40(65)(2,096)400(650)(20,960)(1,770)
1,500
(107)
(0)
(256)
(58)
(692)

–
1,000
(1,100)
(0)
(460)
(59)
(619)

–
10,000(11,000)(0)(4,600)(590)(6,190)

15

54

540

1,226
5,072
6,299

884
6,299
7,183

8,840
62,99071,830Cash flows from investing activities
Purchase of shares of subsidiaries
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Payments of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Proceeds from guarantee deposits received
Other payments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Other payments
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period* Please refer to the note 1 on page 1.

- 10 -

III. Corporate Data
Basic Information (as of March 31, 2014)
Trade name:
Established:
Listed market:
Listed:Business year:
Paid-in capital:
Number of employees:
Head office:Telephone:Group companies:

G-7 HOLDINGS Inc.
June 18, 1976
The first Section of Tokyo Stock Exchange(Securities Code: 7508)
August 22, 1996
From April 1 to March 31 of the following year
1,785 million yen
1,406 (Consolidated)
1-6, Yasakadai 3-chome, Suma-ku, Kobe-shi, Hyogo+81-78-797-7700
G-7 AUTO SERVICE CO., LTD.
G-7 SUPER MART CO., LTD.
G-7 DEVELOPMENT CO., LTD.
G-7 MOTORS CO., LTD.
G-7 FOOD SYSTEM CO., LTD.
G-7 AGRI JAPAN CO., LTD.
G7 INTERNATIONAL PTE. LTD.
G7 RETAIL MALAYSIA SDN. BHD.
G7 VIET NAM CO., LTD.
G7 AGRI VIET NAM CO., LTD.
CM G-7 AGRI MYANMAR CO., LTD.
PT. G7SERVICE. INDONESIASEVEN FORTUNE GROUP LTD. (HONG KONG)
SEVEN FORTUNE (SHANGHAI) SUPERMARKET
CO., LTD.
SEVEN FORTUNE CO., LTD. (TAIWAN)

Directors and Corporate Auditors (as of June 27, 2014)
Chairman and Representative Director
President and Representative Director
Executive Director
Director
Director
Director
Director*
Director*
Corporate Auditor (Full-time)
Corporate Auditor**
Corporate Auditor**

Mamoru Kinoshita
Tatsumi Kaneda
Norio Kinoshita
Yasumasa Kishimoto
Yukitoshi Matsuda
Keiichi Okumoto
Hiroyoshi Kobayashi
Mitsuru Sakamoto
Hiroshi Fukuda
Teiji Joko
Hiroki Nishii* Outside Director ** Outside Corporate Auditor
Note: The Company designated Mr. Hiroyoshi Kobayashi, Mr. Mitsuru Sakamoto, Mr. Teiji Joko, and Mr. Hiroki Nishii as
Independent Directors/Auditors stipulated by Tokyo Stock Exchange and reported them to the Exchange.

- 11 -

Stock Status (as of March 31, 2014)
Total number of shares authorized:
Total number of shares issued:
Number of shareholders:Major shareholders (Top 10)

52,000,000 shares
13,336,400 shares
6,047

Shareholder name
Mamoru Kinoshita
Norio Kinoshita
Kinoshita Family Service
Chinami Seki
Yoko Kinoshita
Autobacs Seven Co., Ltd.
Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan, Ltd.
(Trust account)
ESOP of G-7 HOLDINGS Inc.
Takamichi Tsukamoto

Number of shares held(Thousands)
1,830
1,829
1,154
1,129
826
337
214

Share-holding ratio
(%)
15.04
15.03
9.48
9.27
6.78
2.77
1.76

206

1.69

110
101

0.90
0.83

Notes:
1. G-7 HOLDINGS Inc. holds treasury stock of 1,165,488 shares, which are not included in the above table.
2. Shares less than 1,000 are rounded down.
3. Share-holding ratio was calculated excluding treasury stock.
4. Figures for share-holding ratio are rounded down to the nearest second decimal place.

* Annual Select is an English-language disclosure format developed by ZAIHON, INC. to increase the level of convenience of investors outside Japan based on Japanese-language
statutory disclosure material, timely disclosure material prescribed by securities exchanges and voluntarily disclosed IR material. Annual Select is a registered trademark of
ZAIHON, INC. Reproduction or copying without prior permission is prohibited.
* While every best effort has been made to provide a translation meeting the quality standards required of professionals, the Company does not guarantee it is 100% accurate.
Therefore, please verify the original Japanese text for any final judgments made based on this information.

- 12 -