Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since
no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. Thissummary does not constitute any guarantee and will not compensate any losses and/or damage stemming from actions taken based on thesestatements. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.

Consolidated Financial Reportfor Fiscal 2023 (Fiscal Year Ended March 31, 2023 under Japanese GAAP)May 12, 2023
Company Name: Grandy House Corporation
Stock Exchange Listing:Tokyo Stock Exchange
Securities Code: 8999
URL:
https://www.grandy.co.jp
Representative:
Yasuro Hayashi, President
Inquiries:
Ryuji Umeki, Executive Officer & Administration Manager
TEL: +81-28-650-7777
Scheduled date of the Ordinary General Meeting of Shareholders: June 29, 2023
Scheduled date of securities report filing:
June 29, 2023
Scheduled date of dividend payment commencement:
June 30, 2023
Preparation of annual supplementary explanatory materials:
Yes
Annual results briefing held:
Yes (for analysts)(Figures are rounded down to the nearest million yen unless otherwise stated.)

1. Consolidated Financial Results for Fiscal 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Net Income Attributable to
Net Sales
Operating Income
Ordinary Income
Owners of the Parent(¥ million)%(¥ million)%(¥ million)%(¥ million)%
Fiscal 2023
55,2050.6
3,329(17.2)
3,103(18.5)
2,168(16.1)
Fiscal 2022
54,884
16.4
4,022
74.9
3,810
81.8
2,583
49.8
Note: Comprehensive income
Fiscal 2023: ¥2,202 million (-14.7%)
Fiscal 2022: ¥2,581 million (47.9%)
Net Income per
Net Income per
Ordinary Income /Operating Income /Return on Equity
Share
Share (Diluted)
Total Assets
Net Sales
(¥)
(¥)
%
%
%
Fiscal 2023
74.50
73.99
8.5
4.6
6.0
Fiscal 2022
88.06
87.56
10.9
6.4
7.3
Reference: Equity in earnings of affiliates
Fiscal 2023: — (¥ million)
Fiscal 2022: — (¥ million)(2) Consolidated Financial Position
Total Assets
Net Assets(¥ million)(¥ million)
March 31, 2023
72,64526,196
March 31, 2022
60,901
24,660
Reference: Shareholders' equity
Fiscal 2023: ¥26,158 million
Fiscal 2022: ¥24,592 million

Shareholders' Equity Ratio
%
36.0
40.4

Net Assets per Share

Cash Flows from
Financing Activities(¥ million)
10,075(1,339)Cash and Cash Equivalents
at the End of the Period(¥ million)
10,825
11,083(¥)
889.12850.82(3) Consolidated Cash Flows

Fiscal 2023
Fiscal 2022

Cash Flows fromOperating Activities(¥ million)(8,845)(444)

Cash Flows from
Investing Activities(¥ million)(1,488)(481)

2. Dividends
Annual Dividend per Share

Total
Dividends

Payout Ratio(Consolidated)

Ratio of
Dividends to
Net Assets(Consolidated)
%
3.7
3.7

PeriodTotal
End
(¥)
(¥)
(¥)
(¥)
(¥)
(¥ million)%
Fiscal 2022
—
0.00
—
30.00
30.00
902
34.1
Fiscal 2023
—
0.00
—
32.00
32.00
972
43.0
Fiscal 2024 (Forecast)
—
0.00
—
32.00
32.00
42.8
Note: Total dividends include dividends (¥30 million for the fiscal year ended March 2023, ¥35 million for the fiscal year ended March 2022)
paid to shares in the Company held by "Grandy House Employee Stock Holding Partnership Exclusive Trust Account."
1Q-End2Q-End3Q-End

3. Consolidated Financial Forecasts for Fiscal 2024 (April 1, 2023 to March 31, 2024)

Net Sales

Full Fiscal Year
* Notes(¥ million)
60,000Operating Income%
8.7(¥ million)
3,500

%
5.1

(Percentage figures show the year-on-year increase (decrease).)Net Income
Ordinary Income
Attributable to
Net Income per ShareOwners of the Parent(¥ million)%(¥ million)
%
(¥)
3,200
3.1
2,200
1.4
74.78

(1) Significant changes to subsidiaries during the period(Changes in significant subsidiaries resulting in changes in the scope of consolidation): None
Newly included: —Excluded: —(2) Changes in accounting policies, accounting estimates, and restatements
1) Changes in accounting policies due to revision to accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatements:(3) Number of issued shares (common stock)1) Number of issued shares(including treasury shares)
2) Number of treasury shares
3) Average number of shares during the period

March 31, 2023

30,823,200 shares

None
None
None
None

March 31, 2022

30,823,200 shares

March 31, 2023
1,402,345 shares March 31, 2022
1,918,845 shares
March 31, 2023
29,110,686 shares March 31, 2022
29,343,893 shares
Note: The number of treasury shares at the end of the fiscal year includes shares in the Company held by "Grandy House Employee Stock
Holding Partnership Exclusive Trust Account" (959,300 shares for the fiscal year ended March 2023, 1,194,000 shares for the fiscal
year ended March 2022). The shares of the Company held by "Grandy House Employee Stock Holding Partnership Exclusive Trust
Account" are included in treasury shares and deducted from the calculation of the average number of shares during the period(1,058,931 shares for the fiscal year ended March 2023, 184,477 shares for the fiscal year ended March 2022).

Reference: Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for Fiscal 2023 (April 1, 2022 to March 31, 2023)(1) Non-Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Fiscal 2023
Fiscal 2022

Net Sales(¥ million)
26,67826,920

%
(0.9)
14.1

Net Income per Share
(¥)
69.28
72.73

Fiscal 2023
Fiscal 2022

Operating Income(¥ million)%
1,297(29.2)
1,833
38.3

Ordinary Income(¥ million)%
2,316(12.7)
2,653
23.3

Net Income(¥ million)
2,016
2,134

%
(5.5)
11.5

Net Income per Share(Diluted)
(¥)
68.81
72.32

(2) Non-Consolidated Financial Position
Total Assets
Net Assets(¥ million)(¥ million)
March 31, 2023
46,82822,895
March 31, 2022
40,231
21,511
Reference: Shareholders' equity Fiscal 2023: ¥22,858 million
Fiscal 2022: ¥21,444 million

Shareholders' Equity Ratio
%
48.8
53.3

Net Assets per Share(¥)
776.94741.902. Non-Consolidated Financial Forecasts for Fiscal 2024 (April 1, 2023 to March 31, 2024)(Percentage figures show the year-on-year increase (decrease).)Full Fiscal YearNet Sales(¥ million)
27,000%
1.2

Ordinary Income(¥ million)
%
2,300
(0.7)

Net Income(¥ million)
1,900

Net Income per Share
%
(5.8)

*

This consolidated financial report is not subject to auditing by a certified public accountant or an audit firm.

*

Explanation concerning the appropriate use of financial forecasts and other special instructions
Disclaimer:

(¥)
64.58

Results forecasts and other forward-looking statements contained in this report are based on assumptions, beliefs, anduncertainties in light of information available to the Company's management as of the publication date. Actual results may
differ materially from forecasts due to a variety of factors. Therefore, the Company does not guarantee the accuracy of
forecasts and other forward-looking statements and its ability to achieve stated targets. Please refer to "1. OVERVIEW OFOPERATING RESULTS (1) Overview of Operating Results for Fiscal 2023" on page 2 of the Attachment Materials for
information regarding the underlying assumptions for financial forecasts and an explanation concerning the appropriate use of
forecasts and other notes.

Attachment Materials: Table of Contents
1. OVERVIEW OF OPERATING RESULTS ............................................................................................................. 2(1) Overview of Operating Results for Fiscal 2023 ................................................................................................. 2(2) Overview of Financial Position for Fiscal 2023 ................................................................................................. 3(3) Overview of Cash Flows for Fiscal 2023 ........................................................................................................... 3(4) Outlook for Fiscal 2024 ..................................................................................................................................... 4(5) Basic Policy concerning the Allocation of Profits and Dividends for Fiscal 2023 and Fiscal 2024................... 5
2. OVERVIEW OF THE CORPORATE GROUP ....................................................................................................... 6
3. BASIC APPROACH TO THE SELECTION OF ACCOUNTING STANDARDS ................................................ 7
4. CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ........................................................................... 8(1) Consolidated Balance Sheets .............................................................................................................................. 8(2) Consolidated Statements of Income and Comprehensive Income ................................................................... 10(Consolidated Statements of Income) ..............................................................................................................10(Consolidated Statements of Comprehensive Income) .................................................................................... 11(3) Consolidated Statements of Changes in Net Assets ......................................................................................... 12(4) Consolidated Statements of Cash Flows ........................................................................................................... 14(5) Notes to Consolidated Financial Statements .................................................................................................... 15(Notes on Going Concern Assumptions) ..........................................................................................................15(Additional Information) ..................................................................................................................................15(Segment Information) .....................................................................................................................................16― 1 ―1. OVERVIEW OF OPERATING RESULTS(1) Overview of Operating Results for Fiscal 2023
In the consolidated fiscal year under review, the Japanese economy continued to recover slowly as theimpact of COVID-19 infections weakened and the situation returned to normal. On the other hand, severe
economic conditions continued through the second half of the consolidated fiscal year under review, as
domestic demand recorded negative growth as a percentage of GDP growth in the third quarter (OctoberDecember 2022) due to a weakening of domestic consumption caused by rising resource prices stemming from
Russia's invasion of Ukraine and the yen's depreciation compared to the previous fiscal year.
In the housing sector, the number of construction starts in the survey for Statistics on Building Construction
Started publicized by the Ministry of Land, Infrastructure, Transport and Tourism have shown a worsening
trend compared to the previous fiscal year since the rising demand for housing associated with the lifestylechanges in the coronavirus (COVID-19) crisis has slowed down. The number of new housing construction starts(detached houses for sale) in the survey had been steadily exceeding the level of the same month of the previous
year for 18 consecutive months until October 2022, but has continuously fallen below the level of the samemonth of the previous fiscal year since November 2022.
Under these circumstances, the Grandy House Group has upheld the basic policies of "Strengthen ourbusiness foundations and expand business areas for sustainable growth in the new home sales business,""Expand the scale of the housing stock business and maximize synergies with the new home sales business" and"Strengthening our response to sustainability (ESG) issues" in the third medium-term business plan (from thefiscal year ended March 31, 2022 to the fiscal year ending March 31, 2024). Accordingly, the Group has madeefforts to strengthen its business foundations and further improve its corporate value.
In the mainstay Real Estate Sales Business, we have engaged in measures to expand the scale of new homesales business by opening new branches to strengthen our sales capabilities in the Tokyo metropolitan area andactively acquiring land for sale in all sales areas. However, a reactionary drop in demand for housing due tolifestyle changes in the coronavirus (COVID-19) crisis that occurred in the previous fiscal year and surging sales
prices due to higher building material costs affected the desire to acquire homes. As a result, compared with theprevious consolidated fiscal year, the Construction Material Sales Business and the Real Estate Leasing
Business posted higher sales and profits, but the Real Estate Sales Business posted lower sales and profits due
to sluggish sales.
Following these initiatives, the Grandy House Group's results for the consolidated fiscal year ended March2023 were as follows: Net sales totaled ¥55,205 million, an increase of 0.6% year-on-year; operating income
was ¥3,329 million, a decrease of 17.2% year-on-year; ordinary income was ¥3,103 million, a decrease of
18.5% year-on-year; and net income attributable to owners of the parent totaled ¥2,168 million, a decrease of
16.1% year-on-year.
Operating results by business segment are presented as follows.
a. Real Estate Sales
In the real estate sales, we have continued to implement thorough infection prevention measures andfocus on non-contact sales activities with the safety and security of customers and employees given toppriority. Along with the normalization of economic activities, we have gradually revitalized sales practices
previously implemented prior to the coronavirus (COVID-19) crisis, such as holding events to attract
customers.
In new home sales, in the Tokyo metropolitan area (Tokyo, Saitama, Chiba and Kanagawa) westrengthened business foundations for growth including opening the Makuhari branch (Hanamigawa ward,
the city of Chiba) in January 2023, shift to an in-house construction system in the Kanagawa area, and theacquisition of land to expand business from the Saitama area to the Tokyo area. In the northern Kanto
region, we continued initiatives such as deepening relationships with local customers by strengthening ourcommunity-based procurement and sales systems. As a result, we have ranked No. 1 for two consecutive
years in the regional builders category in the 2021 Home Builder Ranking published by JUTAKU SANGYOKENKYUSHO CO., LTD.
In the product side, we improved quality and services, such as by focusing on creating sustainable
homes that take social issues into consideration with an increased ratio of ZEH-specification products withsolar panels and improved insulation performance. As a result, we have ranked No. 1 for four consecutive
years in the tract-home builders category of the northern Kanto region in the 2023 Oricon Customer
Satisfaction Survey.

― 2 ―However, the number of new homes sold for the consolidated fiscal year was 1,432 a decrease of 78
homes year-on-year, because of a surge in housing prices due to rising construction materials and a shortageof products for sale in some areas.
In existing home sales, purchase and selling prices were on an upward trend mainly in the Tokyo
metropolitan area as the price of new homes kept increasing, which raised the need for existing homes
whose selling prices were lower than those of new housing. Under these circumstances, in terms ofpurchasing, we endeavored to acquire prime properties and accumulate inventory to expand our operations.
On the other hand, in terms of sales, the desire to purchase property showed a decline as property pricesrose. Consequently, the number of homes sold for the consolidated fiscal year under review was 126, adecrease of 22 year-on-year.
As a result of these initiatives, sales in the real estate sales segment during the fiscal year under review
decreased 0.2% year-on-year to ¥50,925 million, while segment profit was ¥2,526 million, down 22.8%
from the previous fiscal year.
b. Construction Material Sales
The number of new housing starts for wooden houses, an indicator of the market environment, fell yearon-year for twelve consecutive months up to March 2023. Accompanying the slowdown in demand,
domestic lumber prices began to decline in the second half of the current fiscal year.
Under these circumstances, we strove to reinforce not only the supply chain to secure raw materials but
also our salesforce to secure excellent customers with whom we can trade at fairer selling prices, which led
to a year-on-year improvement in earnings. As a result, sales in the construction materials sales segment
during the consolidated fiscal year under review rose by 10.3% year-on-year to ¥3,946 million, with asegment profit of ¥481 million, an increase of 18.6% year-on-year.
c. Real Estate Leasing
In the office leasing market in Tochigi Prefecture, our mainstay target, the occupancy ratios of properties
far from railway stations and older properties stayed low for a longer period while the redevelopment of theeast entrance of JR Utsunomiya Station progressed and new properties were put on the market. In theparking market, the operational rate of pay-by-the-hour parking lots remained on a recovery trend due to therevitalization of social and economic activities.
Under these circumstances, in the office leasing market, etc., the occupancy rates of existing properties
have been improving and Sun Village Shonan (Kashiwa city, Chiba prefecture), newly acquired by Chiba
Grandy House, began operations in the fourth quarter. The operational rate of pay-by-the-hour parking lots,
which had declined due to the coronavirus (COVID-19) crisis, improved significantly, despite a decrease in
the number of available parking spaces due to the sale of some assets. As a result, sales in the real estateleasing segment for the consolidated fiscal year under review were ¥ 333 million, an increase of 18.1% yearon-year, with a segment profit of ¥158 million, an increase of 33.9% year-on-year, an increase in both sales
and income over the previous fiscal year.
(2) Overview of Financial Position for Fiscal 2023
As of the end of the consolidated fiscal year under review, consolidated total assets rose to ¥72,645 million,a rise of ¥11,743 million compared to the end of the previous consolidated fiscal year. This is primarily the
result of an increase in inventories and property, plant and equipment caused by the acquisition of housing lots
to reflect the expanded area of the Real Estate Sales Business and the purchase of properties for leasing with aneye to redirecting them to housing lots in the future.
Liabilities increased to ¥46,449 million, an increase of ¥10,207 million from the end of the previous fiscal
year. This was mainly due to an increase in loans payable for the acquisition of housing lots in the real estate
sales segment.
Total net assets stood at ¥26,196 million as of March 31, 2023. This represents an increase of ¥1,535 million
from the balance recorded as of March 31, 2022. This was due to acquiring net income attributable to owners of
the parent despite the payment of dividends.
(3) Overview of Cash Flows for Fiscal 2023
Cash and cash equivalents (hereinafter, "cash flows") as of the end of the consolidated fiscal year underreview decreased by ¥258 million from the end of the previous fiscal year, as a result of smaller cash flows
from operating activities and investing activities and larger cash flows from financing activities, to reach¥10,825 million.
― 3 ―The Company's cash flows and their factors that cause them to fluctuate during the consolidated fiscal year
under review are presented as follows.
(Cash Flows from Operating Activities)
Net cash used in operating activities amounted to ¥8,845 million (net cash used in operating activities forthe previous fiscal year was ¥444 million). This was mainly due to a decrease in funds resulting from anincrease in inventories resulting from the acquisition of housing lots despite earning net income before income
taxes.
(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to ¥1,488 million (net cash used in investing activities for theprevious fiscal year was ¥481 million). This was mainly due to the acquisition of properties for leasing and landfor branch parking lots.
(Cash Flows from Financing Activities)
Net cash provided by financing activities amounted to ¥10,075 million (net cash used in financing activities
for the previous fiscal year was ¥1,339 million). This was mainly due to an increase in loans payable associatedwith an increase in inventories, etc., despite the payment of dividends.
Trends in the Group's cash flow-related indices are presented as follows.
Shareholders' equity ratio (%)
Equity ratio on market value basis (%)
Interest-bearing liabilities to cash flow ratio (years)
Interest coverage ratio (times)

Fiscal 2021
39.6
24.3
8.3
12.4

Fiscal 2022
40.4
24.8
—
—

Fiscal 2023
36.0
22.2
—
—

Shareholders' equity ratio: Shareholders' equity/total assets
Equity ratio on a market value basis: Market capitalization/total assets
Interest-bearing liabilities to cash flow ratio: Interest-bearing liabilities/cash flows
Interest coverage ratio: Cash flows/interest payments
Notes: 1. Each index is calculated based on consolidated financial data.
2. Market capitalization is calculated based on the number of issued shares as of the period-end (after
deducting treasury shares).
3. Cash flows from operating activities are used as "cash flows" in the above calculation. As operating
cash flows for the fiscal year ended March 31, 2022 and the fiscal year ended March 31, 2023 were
negative, the interest-bearing liabilities to cash flow ratio and interest coverage ratio data have been
omitted for these years.
4. Interest-bearing liabilities include all liabilities that bear interest under the liabilities section recordedon consolidated balance sheets.
(4) Outlook for Fiscal 2024
The Japanese economy is expected to continue moving toward the normalization of economic activity as theimpact of COVID-19 subsides. However, it is forecast to remain uncertain in the future because there areconcerns that several factors will affect domestic demand. Such factors include concerns about rising prices andinterest rates, unrest over geopolitical risks and persistently high raw material and energy prices.
In the housing market, the business environment is expected to remain severe due to soaring housing prices
and the impact of the backlash from the special demand generated by the coronavirus (COVID-19) crisis, while
the housing market is required to respond to new needs created by that crisis and to address social issues suchas energy conservation, energy generation, and disaster prevention.
In this business environment, we have revised the third medium-term business plan (from the fiscal year
ended March 31, 2022 to the fiscal year ending March 31, 2024) in the "Notice Concerning Revision of
Numerical Targets of Medium-Term Management Plan" (Japanese language only), released today. We
maintained the consolidated net sales target of ¥60 billion for the fiscal year ending March 31, 2024, the final
year of the plan, but revised the numerical targets to ¥3.2 billion in consolidated ordinary income, a decrease of
20.0% from the original plan and ¥2.2 billion in net income attributable to owners of the parent, a decrease of
15.4% from the original plan. We will continue to implement the initial plan with respect to management
policy, management strategy, etc.

― 4 ―

In the new home sales business, one of our core operations, we will expand our business coverage in theTokyo metropolitan area (including Chiba, Saitama, and Kanagawa prefectures) positioned as a priority area forbusiness growth and establish a sales base such as securing human resources.
In the housing stock business, in light of the government's promotion of the expansion and revitalization of
the housing stock market, the renovation business will enhance business value aiming to maximize synergies
with the new home sales business, focusing on former new-home customers. In the existing-home business, wewill grow sales through selecting prime properties and increasing inventory levels of completed properties.
In terms of our response to sustainability (ESG) issues, we will enhance our initiatives to realize a recyclingbased society through the provision of housing and disclosures on decarbonization. We will also address issues
required in the TSE Prime Market, such as strengthening our governance structure.
(5) Basic Policy concerning the Allocation of Profits and Dividends for Fiscal 2023 and Fiscal 2024
Grandy House focuses on increasing the corporate value and returning more profits to shareholders in apositive and stable manner as one of its priority management issues. For shareholders, we will pay dividends inline with its business performance while aiming for a consolidated dividend payout ratio of 35%.
The dividend per share for fiscal 2023 under review will be ¥32 per share as announced on May 9, 2022 andMarch 20, 2023. Under the basic policy described above, we plan to maintain 32 yen per share for the year
ending March 31, 2024 in consideration of stable returns to shareholders.

― 5 ―2. OVERVIEW OF THE CORPORATE GROUP
The Grandy House Group (Grandy House Corporation and its affiliates) consists of Grandy House
Corporation and eight subsidiaries. The Group is mainly engaged in real estate sales, construction material sales,
and real estate leasing.
The business operations of the Group and the positions of the Grandy House Corporation and its main
subsidiaries (seven companies) in those operations are as follows.
(1) Real Estate Sales
The Grandy House Group purchases housing lots, obtains permits and approvals for development, manages
residential construction works, designs and builds houses, and handles sales and after-sales maintenance.
Sales, design, and construction of detached houses, which are our main business, are in general supervised
by Grandy House Corporation and its subsidiaries by trading area, from the perspective of promoting regionbased sales. General sales areas of each company are as follows:
Grandy House Corporation: Tochigi Prefecture, western part of Ibaraki Prefecture, Saitama Prefecture, andTokyo Metropolis
Ibaraki Grandy House Co., Ltd.: Ibaraki Prefecture (excluding the western part)
Gunma Grandy House Co., Ltd.: Gunma Prefecture
Chiba Grandy House Co., Ltd.: Chiba Prefecture
Kanagawa Grandy House, Inc.: Kanagawa Prefecture
Furthermore, Chuko Jutaku Joho Kan Co., Ltd. is engaged in sales of existing homes and Grandy ReformCo., Ltd. is engaged in the after-sales maintenance and renovation business.
(2) Construction Material Sales
General Livetech Co., Ltd. is engaged in sales of construction materials and components, mainly pre-cut
materials.
(3) Real Estate Leasing
Grandy House Corporation and some of its subsidiaries are engaged in the leasing business of tenantbuildings, apartments and other properties owned by these companies, and the parking lot business.
[Business Group Organization Chart] (As of March 31, 2023)
The matters described above are shown in the following Business Group Organization Chart.
Grandy House Corporation
Supply of pre-cut materials, etc.

Chiba Grandy House Co., Ltd.

Grandy Reform Co., Ltd.

Sales of pre-cut
materials, etc.

Renovation

Sales of existinghomes, etc.

After-sales maintenance

General Livetech
Co., Ltd.

Entrustment of after-sales maintenance

Chuko Jutaku Joho
Kan Co., Ltd.

Kanagawa Grandy House Co., Ltd.

Leasing of houses, stores, and buildings and the parking lot business

Gunma Grandy House Co., Ltd.

Sales of detached houses, etc.
(Ibaraki, Gunma, Chiba, andKanagawa Prefectures)

Sale of detached houses, etc. (Tochigi Prefecture, etc.)

Ibaraki Grandy House Co., Ltd.

Customers
Construction
material sales

Real estate sales― 6 ―Real estateleasing

3. BASIC APPROACH TO THE SELECTION OF ACCOUNTING STANDARDSAt present, the Grandy House Group operates its business only in Japan and most of its stakeholders areshareholders, lenders, and business partners in Japan. The Group has no plan to raise funds from overseas
markets. Against this background, the Group will prepare its consolidated financial statements based on Japanese
GAAP for the time being.
For the application of International Financial Reporting Standards (IFRS), we will take adequate actions while
paying attention to various situations inside and outside Japan.

― 7 ―4. CONSOLIDATED FINANCIAL STATEMENTS AND NOTES(1) Consolidated Balance Sheets(Thousands of Yen)
Fiscal 2022
(As of March 31, 2022)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade and contract assets
Real estate for sale
Costs on uncompleted construction contracts
Real estate for sale in process
Merchandise and finished goods
Raw materials and supplies
Other
Allowance for doubtful accounts

Fiscal 2023
(As of March 31, 2023)

11,098,044
702,666
8,129,757
7,246
26,090,400
350,922279,751
1,100,457(4,398)

10,839,975
574,709
11,352,157
17,58433,998,068
376,807
176,128
989,203(1)

47,754,848

58,324,634

6,300,048(2,515,788)

6,519,600(2,701,061)

Buildings and structures, net

3,784,259

3,818,539

Machinery, equipment and vehicles
Accumulated depreciation

107,170(80,410)

107,590(88,609)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net

26,75918,980392,491(336,898)

415,707(363,126)

55,59352,5806,063,224
181,104(88,685)

7,261,402
170,096(92,893)

Leased assets, net

92,41977,202

Construction in progress

19,06420,00010,041,319

11,248,706

1,028,445
51,284

891,319
65,246

Total intangible assets

1,079,729

956,566

Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other

143,000
14,601
647,621
1,175,569

177,000
9,217
618,717
1,227,394

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

Total property, plant and equipment
Intangible assets
Goodwill
Other

Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance costs
Total deferred assets
Total assets― 8 ―1,980,792

2,032,329

13,101,841

14,237,601

45,286

83,07845,286

83,07860,901,976

72,645,313

(Thousands of Yen)
Fiscal 2022
(As of March 31, 2022)

Fiscal 2023
(As of March 31, 2023)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,870,228

3,668,472

Short-term loans payable

13,082,700

15,262,600

Current portion of bonds

1,000,000

500,000

Current portion of long-term loans payable

2,604,311

3,103,044

Lease obligations

34,201

34,124

Income taxes payable

899,770

367,833

185,469

189,175

Other

1,105,187

1,039,922

Total current liabilities

22,781,868

24,165,172

Provision for warranties for completed construction

Non-current liabilities
Bonds payable

2,300,000

4,600,000

Long-term loans payable

9,820,280

16,232,236

Lease obligations

67,64750,805

Provision for directors' retirement benefits

251,695

257,787

Net defined benefit liability

904,8111,014,424

Other
Total non-current liabilities
Total liabilities

115,459

128,876

13,459,893

22,284,129

36,241,762

46,449,301

2,077,500

2,077,500

Net assets
Shareholders' equity
Capital stock
Capital surplus

2,592,335

2,674,902

Retained earnings

20,718,007

21,983,746

Treasury shares(813,488)(629,596)

24,574,354

26,106,551

Valuation difference on available-for-sale securities

18,00052,000Total accumulated other comprehensive income

18,00052,00067,86037,46024,660,214

26,196,011

60,901,976

72,645,313

Total shareholders' equity
Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets― 9 ―(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Thousands of Yen)
Fiscal 2022
(From April 1, 2021 toMarch 31, 2022)

Fiscal 2023
(From April 1, 2022 toMarch 31, 2023)

Net sales

54,884,855

55,205,407

Cost of sales

44,399,017

45,428,055

Gross profit

10,485,838

9,777,351

Selling, general and administrative expenses

6,462,958

6,448,326

Operating income

4,022,879

3,329,025

Non-operating income
Interest income

826

122

Dividends income

5,698

5,611

Commission

31,85930,907

Penalty income

5,190

8,590

Other

21,34136,890Total non-operating income

64,914

82,121

Interest expenses

237,522

269,326

Commission for syndicate loan

12,52913,157

Other

27,535

25,103

Total non-operating expenses

277,587

307,587

3,810,207

3,103,560

23,133

95,810Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of non-current assets

–

2,220

23,13398,030Loss on retirement of non-current assets

21,002

14,085

Loss on cancellation of lease contracts

358–

Total extraordinary loss

21,36014,085

Net income before income taxes

3,811,980

3,187,504

Income taxes – current

1,313,218

989,910

Income taxes – deferred(85,127)

28,904

Total income taxes

1,228,091

1,018,815

Net income

2,583,889

2,168,689

Net income attributable to owners of the parent

2,583,889

2,168,689

Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary loss

― 10 ―

(Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Fiscal 2022
(From April 1, 2021 toMarch 31, 2022)
Net income

Fiscal 2023
(From April 1, 2022 toMarch 31, 2023)

2,583,889

2,168,689(2,500)34,000

Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income(2,500)34,0002,581,389

2,202,689

2,581,389

2,202,689––

Comprehensive income attributable to:Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests― 11 ―

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2022 (From April 1, 2021 to March 31, 2022)

Capital stock
Balance as of the beginning of the period
Changes of items during the period
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury shares
Disposal of treasury shares
Exercise of share acquisition rights
Net changes to items other than shareholder
equityTotal changes of items during the period
Balance as of the end of the period

Balance as of the beginning of the period
Changes of items during the period
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury shares
Disposal of treasury shares
Exercise of share acquisition rights
Net changes to items other than shareholder
equityTotal changes of items during the period
Balance as of the end of the period

2,077,500(Thousands of Yen)
Shareholders' equity
Retained
Total shareholders'Capital surplus
Treasury sharesearnings
equity2,343,929
18,836,131(270,372)
22,987,189(702,013)
2,583,889(700,997)
12,059145,821(702,013)
2,583,889(700,997)
12,059394,227

1,881,876
20,718,007(543,116)(813,488)

1,587,165
24,574,354

ShareacquisitionrightsTotal net assets

152,640

23,160,329(84,780)(702,013)
2,583,889(700,997)
12,059309,447

248,405—
2,077,500

248,405
2,592,335

Accumulated othercomprehensive income
Valuation
Total
difference on
accumulated
availableotherfor-salecomprehensive
securities
income20,50020,500(2,500)(2,500)(2,500)18,000(2,500)18,000― 12 ―(2,500)(84,780)
67,8601,499,885
24,660,214

Fiscal 2023 (From April 1, 2022 to March 31, 2023)

Capital stock
Balance as of the beginning of the period
Changes of items during the period
Dividends from surplus
Net income attributable to owners of the parent
Disposal of treasury shares
Exercise of share acquisition rights
Forfeiture of share acquisition rights
Net changes to items other than shareholder
equityTotal changes of items during the period
Balance as of the end of the period

Balance as of the beginning of the period
Changes of items during the period
Dividends from surplus
Net income attributable to owners of the parent
Disposal of treasury shares
Exercise of share acquisition rights
Forfeiture of share acquisition rights
Net changes to items other than shareholder
equityTotal changes of items during the period
Balance as of the end of the period

2,077,500(Thousands of Yen)
Shareholders' equity
Retained
Total shareholders'Capital surplus
Treasury sharesearnings
equity2,592,335
20,718,007(813,488)
24,574,354(902,950)
2,168,689
135,421
48,469(902,950)
2,168,689
135,421
131,037

1,265,738
21,983,746

183,891(629,596)

1,532,197
26,106,551

ShareacquisitionrightsTotal net assets

67,86024,660,214(28,180)(2,220)(902,950)
2,168,689
135,421102,857(2,220)82,567–2,077,500

82,5672,674,902

Accumulated othercomprehensive income
Valuation
Total
difference on
accumulated
availableotherfor-salecomprehensive
securities
income18,00018,00034,00034,00034,00052,00034,00052,000― 13 ―

34,000(30,400)
37,4601,535,797
26,196,011

(4) Consolidated Statements of Cash Flows(Thousands of Yen)

Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in provision for warranties for completed
construction
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Gain on reversal of share acquisition rights
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Collection of loans receivable
Payments for guarantee deposits
Other
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
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from disposition of treasury shares due to exercise ofshare acquisition rights
Purchase of treasury shares
Proceeds from sale of treasury shares
Cash dividends paid
Repayments of lease obligations
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period― 14 ―

Fiscal 2022
(From April 1, 2021 toMarch 31, 2022)

Fiscal 2023
(From April 1, 2022 toMarch 31, 2023)

3,811,980
283,996
137,126

3,187,504
294,467
137,126

33,175

6,091

(33)

3,706

(2,236)
94,521(6,524)
237,522–(23,133)
21,002(201,408)(4,461,971)
614,996
65,083604,097
8,948(237,706)(819,826)(444,486)(4,396)109,612(5,733)
269,326(2,220)(95,810)
14,085
127,957(11,062,668)(201,756)
275,157(6,947,550)
5,758(272,117)(1,631,634)(8,845,544)

200,000(710,029)
109,495(9,114)
4,391(43,853)(32,659)(481,769)–(1,658,012)
243,551(33,170)
5,384(36,000)
9,919(1,488,167)(7,613,900)
9,623,000(3,207,374)
1,000,000(24,000)

2,179,900
12,613,000(5,763,311)
2,800,000(1,000,000)

309,447

48,469(700,997)
12,059(701,501)(35,949)(1,339,215)(2,265,472)
13,349,007
11,083,535–
135,421(901,988)(35,849)
10,075,642(258,068)
11,083,535
10,825,466

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Additional Information)(Accounting Estimates concerning the Impact of COVID-19)
The Group makes its accounting estimates based on the information available as of the date of theconsolidated financial statements. At present, the COVID-19 outbreak has had a limited impact on theGroup's financial results and we assume that there will be no material impact in and after the next
consolidated fiscal year, either.
In the case, however, that the impact of COVID-19 becomes more serious, it may affect our financial
position and operating results for the next consolidated fiscal year onward.
(Transactions for Distributing the Company's Own Stock to Employees, etc. through Trusts)(Adoption of a trust-type employee stock holding incentive plan (E-Ship®))
The Company has adopted the "trust-type employee stock holding incentive plan (E-Ship®)"(hereinafter referred to as "the Plan") for the purpose of providing its employees with incentives toenhance the corporate value of the Company on a medium-to long-term basis in the fiscal year ended
March 31, 2022.
(1) Overview of transactions
The Plan is an incentive plan for all employees who are members of "the Grandy House Employee
Stock Holding Partnership" (hereinafter referred to as "the Stock Partnership"). The Company has
established the "Grandy House Employee Stock Holding Partnership Exclusive Trust" (hereinafter referred
to as "the Trust") in a trust bank. The Trust will acquire in advance after its establishment the number ofGrandy House shares to be expected to be acquired by the Stock Partnership over a six-year period. At alater date, the Trust will sell its holdings of Grandy House shares to the Stock Partnership on a continual
basis. If an amount equivalent to the gains from sale of shares is accumulated at the end of the term of theTrust, the relevant amount equivalent to the gains from the sale of shares will be distributed as residue
assets to those who satisfy the criteria of beneficiaries. The Company warranties the repayment of loans
payable for the Trust to acquire shares of the Company. Therefore, if an amount equivalent to the loss fromsale of shares accumulates due to a decline in the price of shares of the Company, causing a debt
equivalent to a loss from sale of the relevant shares remains in the Trust at the end of the term of the Trust,the Company will assume the repayment of the relevant remaining borrowing.
(2) Grandy House's own company stock remaining in the TrustGrandy House's own company stock remaining in the Trust is recorded as treasury shares in net assets inaccordance with the book value (excluding the amount of incidental expenses) in the Trust. The bookvalue and the number of the relevant treasury shares are ¥688,938 thousand and 1,194,000 shares for theprevious consolidated fiscal year, and ¥553,516 thousand and 959,300 shares for the consolidated fiscal
year under review.
(3) The book value of loans payable recorded by the application of the gross method
The previous consolidated fiscal year: ¥690,870 thousand
The consolidated fiscal year under review.: ¥534,370 thousand― 15 ―

(Segment Information)
1. Overview of reportable segments
The reportable segments of the Group are components for which separate financial information is available
and whose operating results are regularly reviewed by the Company's Board of Directors when making
decisions about the allocation of management resources and assessing performance.
The Grandy House Group is engaged in the following businesses: new home sales, existing home sales,
home renovation, construction material sales and real estate leasing (all of which are operated in Japan). A
portion or all of operations for new home sales, existing home sales and home renovation are conducted bysubsidiaries. From the perspective of similarity, relationships, and sharing of common management resources,
these three businesses are regarded as one business segment, Real Estate Sales. The Company devises overall
strategies for this real estate sales segment and conducts business activities.
Accordingly, the Group's three reportable segments are classified as Real Estate Sales, Construction
Material Sales, and Real Estate Leasing.
The Real Estate Sales business includes sales of new homes (including building contracts and sale of land,etc.) and existing homes and home renovation. The Construction Material Sales business comprises the
production and sale of pre-cut materials for housing and sale of construction materials and home facilities andequipment. In the Real Estate Leasing business, activities comprise the leasing of office, homes, related
properties, and parking facilities, etc.
2. Calculation method of net sales, profit or loss, assets, liabilities, and other items by reportable segment
The accounting method for reportable segments complies with the accounting policy that is applied to the
preparation of consolidated accounting statements. Segment profit and loss are based on ordinary income. Intersegment sales or transfers are calculated based on market prices.
3. Information concerning the amounts of net sales, profit or loss, assets, liabilities, and other items by reportablesegment
Fiscal 2022 (From April 1, 2021 to March 31, 2022)(Thousands of Yen)
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

51,024,739

3,577,749

282,366

50,0404,097,718

81,273Adjustments(Note 1)

AmountReported on
Consolidated
Financial
Statements(Note 2)54,884,855—

54,884,855

4,229,032(4,229,032)

—

Total

Net sales
Sales to external customers
Inter-segment sales or transfers

51,074,779

7,675,468

363,640

59,113,887(4,229,032)

54,884,855

Segment profit

Total

3,272,867

405,997

118,220

3,797,085

13,1213,810,207

Segment assets

45,425,009

2,859,339

4,153,668

52,438,017

8,463,959

60,901,976

Segment liabilities

34,177,530

2,193,432

441,236

36,812,198(570,436)

36,241,762

Depreciation and amortization

209,619

18,85955,517283,996—

283,996

Amortization of goodwill

137,126——

137,126—

137,126

Other items

Interest income

823

2

—

826

—

826

Interest expenses

231,459

5,280

782

237,522—

237,522

Increase in property, plant and equipment
and intangible assets

430,172

126,169

223,072

779,413—779,413― 16 ―

Fiscal 2023 (From April 1, 2022 to March 31, 2023)(Thousands of Yen)
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

50,925,204

3,946,711

333,491

53,5204,860,118

81,994

Adjustments(Note 1)

AmountReported on
Consolidated
Financial
Statements(Note 2)55,205,407–

55,205,407

4,995,633(4,995,633)

–

Total

Net sales
Sales to external customers
Inter-segment sales or transfers

50,978,724

8,806,829

415,486

60,201,040(4,995,633)

55,205,407

Segment profit

Total

2,526,452

481,344

158,317

3,166,114(62,553)

3,103,560

Segment assets

56,625,883

2,790,458

5,329,390

64,745,732

7,899,581

72,645,313

Segment liabilities

44,557,243

2,010,115

394,526

46,961,885(512,583)

46,449,301

Depreciation and amortization

203,296

22,12369,047294,467–

294,467

Amortization of goodwill

137,126––

137,126–

137,126

Other items

Interest income

119

2

–

122

–

122

Interest expenses

262,376

6,120

829

269,326–

269,326

36,186

1,403,992

1,703,876–

1,703,876

Increase in property, plant and equipment
263,697
and intangible assets
Note 1: Details of adjustments are presented as follows.

Segment profit(Thousands of Yen)
Fiscal 2022
Eliminations of inter-segment transactions
Total

Fiscal 2023
13,121(62,553)

13,121(62,553)

Segment assets(Thousands of Yen)
Fiscal 2022

Fiscal 2023

Eliminations of inter-segment receivables(570,436)(512,583)

Eliminations of inter-segment unrealized profit(56,877)(96,171)

9,091,272

8,508,336

8,463,959

7,899,581

Corporate assets*
Total* Corporate assets mainly comprise cash and deposits as well as investment securities which are not attributable to reportable segments.

Segment liabilities(Thousands of Yen)
Fiscal 2022
Eliminations of inter-segment payables
Total

Fiscal 2023
(570,436)(512,583)(570,436)(512,583)

Note 2: Segment profit has been adjusted with the ordinary income described in consolidated financial statements.

― 17 ―