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 the Third Quarter of Fiscal 2021 Ending March 31, 2021 (Japanese GAAP)
February 8, 2021
Grandy House Corporation
Stock Exchange Listing:Tokyo Stock Exchange
8999
URL:
https://www.grandy.co.jp
Yasuro Hayashi, President
Takanori Saito, Administration Manager, Corporate Administrative
Inquiries:
TEL: +81-28-650-7777
Department
Scheduled date of quarterly securities report filing:
February 10, 2021
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
None
Quarterly results briefing held:
None
Company Name:
Securities Code:
Representative:(Figures are rounded down to the nearest million yen unless otherwise stated.)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2021
(April 1, 2020 to December 31, 2020)(1) Consolidated Operating Results
Net Sales(Percentage figures show the year-on-year increase (decrease).)Net Income Attributable
Operating Income
Ordinary Income
to Owners of the Parent(¥ million)%(¥ million)%(¥ million)%(¥ million)%

33,6682.6

1,105(28.1)

1,214(26.9)

768(27.3)

32,8170.2

1,538(32.4)

1,662(30.3)

1,057(26.3)

Nine months ended
December 31, 2020
Nine months ended
December 31, 2019

Nine months ended December 31, 2020: ¥759 million (-27.8%)
Nine months ended December 31, 2019: ¥1,052 million (-24.5%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Note: Comprehensive income

Nine months ended
December 31, 2020
Nine months ended
December 31, 2019

26.43

26.43

36.58

36.11

Total Assets(¥ million)
58,50655,986

Net Assets(¥ million)
22,234
22,143(2) Consolidated Financial Position

December 31, 2020
March 31, 2020

December 31, 2020:
March 31, 2020:¥22,063 million¥21,972 million

1Q-End2Q-EndReference: Shareholders' equity

Shareholders' Equity Ratio
%
37.7
39.2

Net Assets per Share(¥)
758.97755.83

2. Dividends

(¥)
—
—

Fiscal 2020
Fiscal 2021
Fiscal 2021 (Forecast)

Annual Dividend per Share
3Q-End
(¥)
(¥)
0.00
—
0.00
—

Period-End

Total

(¥)
23.00

(¥)
23.00

24.00

24.00

Note: Revisions to the most recently announced forecast of cash dividends in the current quarter: None

3. Consolidated Financial Forecasts for Fiscal 2021 (April 1, 2020 to March 31, 2021)

Net Sales

Full Fiscal Year(¥ million)
48,500Operating Income%
6.5(¥ million)
1,700%(20.6)(Percentage figures show the year-on-year increase (decrease).)Net Income
Ordinary Income
Attributable to
Net Income per ShareOwners of the Parent(¥ million)%(¥ million)
%
(¥)
1,800
1,200
41.28
(22.1)(15.1)

Note: Revisions to the most recently announced financial forecasts in the current quarter: None

* Notes(1) Significant changes to subsidiaries during the period(Transfers of specific subsidiaries with changes in the scope of consolidation): None
Newly included: —Excluded: —(2) Adoption of specific methods for preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting estimates, and restatement of revisions
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:(4) 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

December 31,
2020
December 31,
2020
Nine months
ended December
31, 2020

None
None
None
None

30,823,200 shares

March 31, 2020

30,823,200 shares

1,752,445 shares

March 31, 2020

1,752,445 shares

29,070,755 shares

Nine months
ended December
31, 2019

28,901,235 shares*This consolidated quarterly financial report is not subject to quarterly review by a certified public accountant or an
audit firm.

*

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

Attachment Materials: Table of Contents
1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS.................................................................. 2(1) Explanation regarding Operating Results ........................................................................................................... 2(2) Explanation regarding Financial Position .......................................................................................................... 3(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts ....................................... 3
2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ................................................. 4(1) Quarterly Consolidated Balance Sheets ............................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ..................................................... 6(Quarterly Consolidated Statements of Income)(Consolidated cumulative third quarter) ......................................................................................................6(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative third quarter) ......................................................................................................7(3) Notes to Quarterly Consolidated Financial Statements ...................................................................................... 8(Notes on Going Concern Assumptions)............................................................................................................8(Notes on Significant Changes in the Amount of Shareholders' Equity) ...........................................................8(Additional Information) ....................................................................................................................................8(Segment Information) .......................................................................................................................................8― 1 ―1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
During the nine months of the consolidated fiscal year under review, the Japanese economy recorded its largest
ever postwar negative growth in real GDP in the April-June 2020 period, following the declaration of state of
emergency in response to the COVID-19 outbreak. Having shown some recovery in the July-September period,
the economy remained unpredictable amid the recurrence of infections since mid-November last year.
In the housing sector, the business environment has also been in a difficult situation due to restrictions on
business activities, calls for customers to voluntarily refrain from going out, and other measures that have been
implemented, particularly those introduced during the period of a state of emergency. This adverse environment
led to a significant drop in the number of new housing starts compared to the previous fiscal year. However, newtrends also emerged, including increased customer interest in detached houses due to factors such as the need to"Avoid the Three Cs" and the expansion of working from home.
Under these circumstances, the Grandy House Group has continued its efforts to build a business foundationthat can respond to an emergency by not only continuing infection control measures, but also creating a sales
structure that utilizes IT and a production system that responds flexibly to changes in the environment. It has done
this while placing top priority on the safety of its customers and the health of its employees.
With regard to new home sales, one of our core operations, we have worked to enhance our online sales
activities while taking thorough measures against infection, and are lifting sales by continuing to reinforce the sales
structure in Saitama and Kanagawa Prefectures, where we had expanded our sales areas in the previous fiscal year.
Furthermore, in existing-home sales, we endeavored to secure inventory with a view to expanding the number ofcompleted home sales amid a deteriorating purchasing environment where auction bidding was suspended.
Thanks to these efforts, the number of homes sold and net sales in the nine months of the consolidated fiscal
year under review increased year-on-year for new-home sales, while decreased year-on-year for existing-homesales due to the remaining effects of reduced purchases in the first half. Profits decreased year-on-year because ofsuch factors as a decline in the gross margin ratio coming from tighter inventory controls and an increase ininvestment costs connected with the business expansion.
As a result of these initiatives, the Grandy House Group's consolidated cumulative operating results for thethird quarter of fiscal 2021 were as follows: Net sales were ¥33,668 million, an increase of 2.6% year-on-year;
operating income decreased to ¥1,105 million, a fall of 28.1% year-on-year; ordinary income was ¥1,214 million,a decline of 26.9% year-on-year; and net income attributable to owners of the parent totaled ¥768 million, adecrease of 27.3% year-on-year.
Operating results by business segment are presented as follows.
a. Real Estate Sales
In new home sales, we have continued our sales activities, taking thorough measures to prevent the COVID-19
infection while working to strengthen online sales activities and further improve Internet advertising. In Saitama
Prefecture, which we added as a new sales area in the previous fiscal year, we increased the number of sales
personnel and strengthened our advertising activities to improve brand recognition, aiming to expand our businessin the area. Meanwhile, our subsidiary in Kanagawa Prefecture, which we acquired in the previous fiscal year,
tightened inventory controls and worked on promoting sales.
In terms of products, we have continued to differentiate ourselves from competitors by providing high valueadded products, including the creation of a townscape that excels in comfort and safety in consideration of families
with children as well as houses with enhanced countermeasures against natural disasters such as typhoons andflooding. We have also proposed new homes to meet changing housing environment needs arising from the Corona(COVID-19)-related crisis, by offering products such as homes featuring storage spaces and multipurpose spaces
to flexibly respond to diversifying workstyles and lifestyles.
Through these efforts, the number of orders received for new homes in the second and third quarters in total
exceeded that in the same periods of the previous year, and the number of homes sold, which had been below thelevel of the same period of the previous year in the first half of fiscal 2021, recovered in the nine months ended
December 31, 2020 to 979 (an increase of 17 year-on-year) over the same period of the previous year.
In existing-home sales, we have continued our efforts to expand the number of homes sold by enhancing
product inventory. In the first half of fiscal 2021, however, we were forced to substantially decrease the number ofpurchases through auction channels compared to the same period of the previous year due to events such as thesuspension of auction bidding arising from the spread of COVID-19. In the third quarter, while the number ofpurchases started to recover, the adverse impact of the reduced product inventory on sales remained, and the numberof homes sold in the nine months ended December 31, 2020 decreased to 102 (a fall of 15 year-on-year).
― 2 ―As a result, sales in the real estate sales segment in the consolidated cumulative third quarter of fiscal 2021
increased by 3.0% year-on-year to ¥31,428 million. We had a segment profit of ¥962 million, a decrease of 33.6%
year-on-year.
b. Construction Material Sales
In the construction material sales, the situation remains challenging even though the decrease in the number of
new housing starts for wooden houses has been slowing down. Wood material prices generally remained weak.
Under these circumstances, the Grandy House Group took necessary measures focusing on securing orders forconstruction materials and managing credit. Accordingly, while the volume of construction material sales
decreased year-on-year, profits rose significantly due mainly to an improvement in the gross margin ratio resulting
from a fall in raw-material prices.
As a result of these factors, sales in the construction material sales segment in the consolidated cumulative third
quarter of fiscal 2021 under review decreased by 2.7% year-on-year to ¥2,040 million. We had a segment profit of¥156 million, an increase of 52.8% year-on-year.
c. Real Estate Leasing
In the real estate leasing, tenants whose businesses had deteriorated either requested a reduction or exemption
from rent or went out of business due to the economic slowdown caused by the spread of COVID-19, thus theoperation rate exhibited a worsening trend in both the office building and parking markets.
The Grandy House Group saw an increase in the number of properties leased year-on-year and prevented theoperation rate from deteriorating by providing supports including rent reductions and exemptions for leased offices
and the like. On the other hand, the Group continued to face a difficult situation despite gradual recovery of theoperation rate in parking lots and others, which had previously declined due to people's voluntary restraint on goingout.
As a result, sales in the real estate leasing segment in the consolidated cumulative third quarter of fiscal 2021
under review were ¥199 million, an increase of 2.9% year-on-year. We had a segment profit of ¥115 million, adecrease of 9.9% year-on-year, mainly due to an increase in repair expenses.
(2) Explanation regarding Financial Position
As of the end of the third quarter of consolidated fiscal 2021 under review, consolidated total assets rose to¥58,506 million, an increase of ¥2,520 million compared to the end of the previous consolidated fiscal year. Thiswas primarily attributable to an increase in cash and deposits by securing liquidity in hand to prepare for future
uncertainty arising from events such as the COVID-19 infection, as well as to the acquisition of housing lots toreflect the expanded real estate sales business area.
Liabilities increased to ¥36,272 million, an increase of ¥2,429 million from the end of the previous consolidated
fiscal year. This was mainly due to an increase in loans payable following the acquisition of housing lots and having
secured liquidity in hand.
Total net assets stood at ¥22,234 million as of December 31, 2020, up ¥91 million compared to the end of theprevious fiscal year. This was due to acquiring net income attributable to owners of the parent despite the payment
of dividends.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There have been no changes to the consolidated financial forecasts announced on November 9, 2020.

― 3 ―2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2020(As of March 31, 2020)

Third Quarter of FY2021(As of December 31, 2020)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Real estate for sale
Costs on uncompleted construction contracts

10,351,397

12,538,066

607,498

516,078

16,799,116

16,648,276

7,198

6,454

Real estate for sale in process

13,899,184

14,777,424

Merchandise and finished goods

238,209

228,414

Raw materials and supplies

113,833

110,554

1,039,355

813,991

Other
Allowance for doubtful accounts(4,934)(519)

43,050,859

45,638,742

3,418,991

3,331,618

Machinery, equipment and vehicles, net

43,85533,704Tools, furniture and fixtures, net

55,94951,692

6,002,977

6,020,142

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

Land
Leased assets, net
Construction in progress
Total property, plant and equipment

105,071

82,674

8,411

144,475

9,635,258

9,664,309

1,302,697

1,199,852

102,366

86,911

1,405,064

1,286,764

329,226

318,997

Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

35,91422,712

Deferred tax assets

457,977

483,971

Other

1,045,367

1,053,864

Allowance for doubtful accounts(9,148)(4,341)

Total investments and other assets

1,859,337

1,875,205

12,899,659

12,826,279

Bond issuance costs

35,593

41,722

Total deferred assets

35,593

41,722

55,986,112

58,506,744

Total non-current assets
Deferred assets

Total assets― 4 ―(Thousands of Yen)FY2020(As of March 31, 2020)

Third Quarter of FY2021(As of December 31, 2020)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,249,367

3,317,046

Short-term loans payable

22,218,600

22,982,700

Current portion of bonds

21,00021,000Current portion of long-term loans payable

695,958

661,734

Lease obligations

37,32334,009

Income taxes payable

367,350

108,779

Provision for warranties for completed construction

70,872

77,208

Other691,928924,004

27,352,399

28,126,482

Bonds payable

1,824,000

2,303,000

Long-term loans payable

3,597,965

4,718,427

Total current liabilities
Non-current liabilities

Lease obligations

77,60356,415

Provision for directors' retirement benefits

203,579

210,320

Net defined benefit liability

720,938

792,540

Asset retirement obligations

12,296

12,348Other54,20352,882

6,490,585

8,145,935

33,842,985

36,272,418

Capital stock

2,077,500

2,077,500

Capital surplus

2,291,248

2,291,248

Retained earnings

17,905,056

18,004,755

Treasury shares(301,297)(301,297)

21,972,507

22,072,206

Valuation difference on available-for-sale securities–(8,500)Total accumulated other comprehensive income–(8,500)170,620

170,620

22,143,127

22,234,326

55,986,112

58,506,744

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income

Subscription rights to shares
Total net assets
Total liabilities and net assets― 5 ―(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated cumulative third quarter)(Thousands of Yen)
Nine months ended
December 31, 2019
(From April 1, 2019 to
December 31, 2019)

Nine months ended
December 31, 2020
(From April 1, 2020 to
December 31, 2020)

Net sales

32,817,966

33,668,399

Cost of sales

27,204,678

28,148,205

Gross profit

5,613,288

5,520,193

Selling, general and administrative expenses

4,075,129

4,414,641

Operating income

1,538,159

1,105,551

964

1,237

Non-operating income
Interest income
Dividends income

5,722

5,653

Operations consignment fee

172,870

164,482

Office work fee

115,121

113,584

Other

52,06256,586

Total non-operating income

346,741

341,543

Non-operating expenses
Interest expenses

186,775

214,271

Commission for syndicate loan

5,977

7,474

Other

30,036

10,810Total non-operating expenses

222,789

232,556

1,662,110

1,214,538

Gain on sales of non-current assets

–

3,802

Total extraordinary income

–

3,802

Ordinary income
Extraordinary income

Extraordinary loss
Loss on sales of non-current assets

1,143

–

Loss on retirement of non-current assets

9,028

11,907

Loss on cancellation of lease contracts

9,460

2,354

Loss on disaster

27,767–

Total extraordinary loss

47,39814,261

Net income before income taxes

1,614,711

1,204,079

563,831462,358

Income taxes – current
Income taxes – deferred(6,457)(26,606)

Total income taxes

557,373435,752

Net income

1,057,338

768,326

Net income attributable to owners of the parent

1,057,338

768,326― 6 ―(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative third quarter)(Thousands of Yen)
Nine months ended
December 31, 2019
(From April 1, 2019 to
December 31, 2019)
Net income

Nine months ended
December 31, 2020
(From April 1, 2020 to
December 31, 2020)

1,057,338

768,326

Valuation difference on available-for-sale securities(5,215)(8,500)Total other comprehensive income(5,215)(8,500)1,052,122

759,826

1,052,122

759,826––

Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests― 7 ―(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in the Amount of Shareholders' Equity)
Not applicable.
(Additional Information)(Accounting Estimates concerning the Impact of COVID-19)
Note that there has been no significant change to our assumptions concerning the impact of COVID-19 that we
described as additional information in our securities report for fiscal 2020.
(Segment Information)
Segment Information
I. The nine months ended December 31, 2019 (April 1, 2019 to December 31, 2019)
1. Information concerning the amounts of net sales and profit or loss by reportable segment
Reportable Segment

Net sales
Sales to externalcustomers
Inter-segment sales
or transfers
Total
Segment profit

Adjustments(Note 1)(Thousands of Yen)
AmountRecorded on
Quarterly
Consolidated
Statements ofIncome (Note 2)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

30,527,748

2,096,557

193,660

32,817,966–

32,817,966–

2,357,952

63,9002,421,852(2,421,852)–

30,527,748
1,450,210

4,454,509
102,621257,560
127,710

35,239,819
1,680,542(2,421,852)(18,431)

32,817,966
1,662,110

Notes: 1 Adjustments of segment profit (−¥18,431 thousand) are eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.
II. The nine months ended December 31, 2020 (April 1, 2020 to December 31, 2020)
1. Information concerning the amounts of net sales and profit or loss by reportable segment
Reportable Segment

Net sales
Sales to externalcustomers
Inter-segment sales
or transfers
Total
Segment profit

Adjustments(Note 1)(Thousands of Yen)
AmountRecorded on
Quarterly
Consolidated
Statements ofIncome (Note 2)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

31,428,837

2,040,211

199,350

33,668,399–

33,668,399–

2,094,408

60,412

2,154,820(2,154,820)–

31,428,837
962,282

4,134,619
156,827

259,763
115,120

35,823,220
1,234,229(2,154,820)(19,691)

33,668,399
1,214,538

Notes: 1 Adjustments of segment profit (−¥19,691 thousand) are eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.
― 8 ―