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.
This summary 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 Report
For the Second Quarter of Fiscal 2017 Ending March 31, 2017 (Japanese GAAP)
November 7, 2016
Company Name:Grandy House Corporation
Stock Exchange Listing:Tokyo Stock Exchange
Securities Code:
8999
URL:
http://www.grandy.co.jp
Representative:
Hiroyuki Murata, President
Inquiries:
Atsuo Saito, Senior Managing Director
TEL: +81-28-650-7777
Scheduled date of quarterly securities report filing:
November 10, 2016
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
Yes
Quarterly results briefing held:
Yes (For institutional investors and analysts)(Figures are rounded down to the nearest million yen unless otherwise stated.)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2017
(April 1, 2016 to September 30, 2016)(1) Consolidated Operating Results
Net Sales(Percentage figures show the year-on-year increase (decrease).)Net Income Attributableto Owners of the Parent
Operating Income
Ordinary Income
Company(¥ million)%(¥ million)%(¥ million)%(¥ million)%

22,614

9.5

1,513

10.7

1,571

10.8

1,025

14.7

20,659

15.2

1,367

36.0

1,418

34.5

894

39.6

Six months ended
September 30, 2016
Six months ended
September 30, 2015
Note: Comprehensive Income

Six months ended September 30, 2016: ¥1,038 million (16.4%)
Six months ended September 30, 2015: ¥892 million (43.0%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Six months ended
September 30, 2016
Six months ended
September 30, 2015

35.62

—

31.07

—

Total Assets(¥ million)
42,66339,545Net Assets(¥ million)
17,373
16,623(2) Consolidated Financial Position

September 30, 2016
March 31, 2016
Reference: Shareholders' equity

Shareholders' Equity Ratio
%
40.3
41.6

Net Assets per Share(¥)
596.77571.58September 30, 2016: ¥17,173 million
March 31, 2016: ¥16,448 million

2. Dividends
1Q-End2Q-End(¥)——

Fiscal 2016
Fiscal 2017
Fiscal 2017 (Forecast)

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

Period-End

Total

(¥)
12.00

(¥)
12.00

14.00

14.00

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

3. Consolidated Financial Forecasts for Fiscal 2017 (April 1, 2016 to March 31, 2017)

Net Sales

Full Fiscal Year(¥ million)
45,000%
7.9(Percentage figures show the year-on-year increase (decrease) for each corresponding period.)
Net Income
Attributable toOperating Income
Ordinary Income
Net Income per ShareOwners of the Parent
Company(¥ million)%(¥ million)%(¥ million)
%
(¥)
3,150
13.8
3,250
13.5
1,970
13.7
68.46

Note: Revisions to the most recently announced financial forecasts in the current quarter: None* Explanatory notes(1) Changes of important subsidiaries during the period(changes in specified subsidiaries resulting in a change 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, accounting estimates, and restatements
1) Changes in accounting policies in connection with revision to accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatements:(4) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding
September 30,
as of the period-end (including treasury shares) 2016
September 30,
2) Number of treasury shares
3) Average number of shares issued andoutstanding for the period

2016
Six months ended
September 30,
2016

Yes
None
None
None

30,823,200 shares

March 31, 2016

30,823,200 shares

2,046,245 shares

March 31, 2016

2,046,245 shares

28,776,955 shares

Six months ended
September 30,
2015

28,776,955 shares*

Disclosure concerning the implementation status of quarterly review proceduresThis Quarterly Consolidated Financial Report is exempt from the quarterly review procedures required by the Financial
Instruments and Exchange Act of Japan. At the time of this report's disclosure, the quarterly review process for quarterly
consolidated financial statements under the Financial Instruments and Exchange Act has not been completed.

*

Explanation concerning the appropriate use of forecasts and other special instructions
The forecast data presented in this report are based on currently available information and contain a significant number of
uncertainties. Actual results may differ from forecast data due to changes in business conditions.

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 ............................................ 4
2. MATTERS CONCERNING SUMMARY INFORMATION (Notes) .................................................................... 4(1) Changes of Important Subsidiaries during the Period ............................................................................................. 4(2) Adoption of Specific Methods for Preparation of the Quarterly Consolidated Financial Statements ..................... 4(3) Changes in Accounting Policies, Accounting Estimates, and Restatements ........................................................... 4
3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS ........................................................................ 5(1) Quarterly Consolidated Balance Sheets................................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............. 7(Quarterly Consolidated Statements of Income) .....................................................................................................7(Consolidated cumulative second quarter) ..........................................................................................................7(Quarterly Consolidated Statements of Comprehensive Income)............................................................................8(Consolidated cumulative second quarter) ..........................................................................................................8(3) Quarterly Consolidated Statements of Cash Flows ................................................................................................. 9(4) Notes to Quarterly Consolidated Financial Statements ......................................................................................... 10(Notes on Going Concern Assumptions) ...............................................................................................................10(Notes on Significant Changes in the Amount of Shareholders' Equity) ...............................................................10(Segment and Other Information)..........................................................................................................................10―1―

1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
During the six months ended September 30, 2016, although some areas of weakness remain, the Japanese
economy showed signs of slowly recovering as positive growth was recorded for two consecutive quarters,
including the previous quarter. However, uncertainty over the economic outlook continued, including in terms of
there being a risk of an economic downturn in emerging countries in Asia.
In the housing sector, the favorable environment for the acquisition of houses continued due to theimprovement in employment and income conditions and the continuation of various support measures to promote
home acquisition, as well as the interest rates on housing loans remaining at record low levels. As a result, newhousing starts grew steadily. On the other hand, following an announcement in June that the hike in consumption
tax to 10% that was scheduled for April 2017 would again be postponed, it is now expected that the sharp
demand fluctuations that accompany such tax hikes can be avoided.
Under these circumstances, the Grandy House Group positioned the consolidated fiscal year under review,which is the second year of the three-year medium-term business plan (drawn up in 2015), as an important year
to achieve management targets in the final year, and continued to strive to expand and reinforce business underthe basic policy of "continuous growth through reinforcing the core operation (new homes)" and "expansion ofbusiness through enhancement of the stock business."
With regard to new home sales, a core operation, we made efforts to demonstrate our presence in this area of
business by holding events for actually meeting and interacting with local professional sports teams at our"Grandy Plaza" experience-based showrooms, which serve as our hubs for information dissemination. In
addition, in the focus area stretching from southern Ibaraki Prefecture to Kashiwa City in Chiba Prefecture, we
continued to expand our business and worked to ensure that we have a sufficient quantity of house products. In
light of increasing environmental awareness, we also cooperated with a major automobile manufacturer toenhance quality by launching and proposing house products that combine housing with electric vehicle (EV)technology and are equipped with facilities for coping with emergencies as well as enhanced safety and energy
saving. As a result of these efforts, new home sales for the six months ended September 30, 2016 reached arecord high of 685.
In existing home sales, under our policy of business expansion, we opened a branch in Setagaya Ward, Tokyo
in March with the aim of actively expanding our business in the Metropolitan area, and continued to reinforce oursales structure by hiring sufficient personnel in the period under review. In addition, as a result of our efforts toensure that we have sufficient inventory (over 100 homes at any time) to bolster our sales capabilities, existinghome sales for the six months ended September 30, 2016 reached a total of 75, up 16 from the same period of theprevious fiscal year.
As a result of these factors, the Group's consolidated results for the second quarter (cumulative) of Fiscal
2017 were as follows. Net sales were ¥22,614 million, up 9.5% from the same period of the previous fiscal year;
operating income rose to ¥1,513 million, an increase of 10.7% year-on-year; ordinary income was ¥1,571
million, an increase of 10.8% year-on-year; and net income attributable to owners of the parent company totaled¥1,025 million, an increase of 14.7% year-on-year.
Results by business segment are presented as follows.
Real Estate Sales
In the new home sales business, we made efforts to demonstrate our presence in this area of business byholding events—such as the Summer Festival, the (Ennichi street) stalls Fair and an event run by a local
professional bicycle racing team allowing participants to try riding racing bicycles for themselves—at our"Grandy Plaza" experience-based showrooms, which serve as our hubs for information dissemination. We also
made efforts to strengthen our sales capabilities for developing new customers by distributing advertisingmagazines in mailboxes. With respect to expanding our sales area, in our designated key area between southern
Ibaraki Prefecture and Kashiwa City in Chiba Prefecture, we continued to cover the breadth of the area stretchingalong the Joban Line and Tsukuba Express Line, and worked to enhance our house products both in terms ofquantity and quality. We further responded to increasing environmental awareness by launching "Solaris Vita
Minami-Kashiwa Phase 8" (26 lots, Kashiwa City, Chiba Prefecture), which was put on the market in June 2016.
This is a proposal-based original house product that combines housing with electric vehicle (EV) technology byhaving EV plug-in stations installed within the housing lots of all-electric homes that are equipped withconventional solar power generation systems so that both solar power and EV can be utilized for electricity athome in an emergency. As a result, new home sales for the quarter under review and the six months ended
September 30, 2016 reached a record high of 352 and 685 (up 62 year-on-year), respectively.
―2―

In existing home sales, with a view to reinforcing stock business, we made efforts to strengthen our sales
capabilities by expanding our sales areas and building up our property inventory (over 100 homes at any time, of
which 60 are completed). At the branch that we opened in Setagaya Ward, Tokyo in March as the key site for oursales area expansion, we focused on constructing robust purchase and sales structures as well as hiring personnel.
In addition, with a view to increasing the inventory, we aimed to strengthen our relationships with companies
who can provide market information and to enhance our capabilities for the research and assessment of auction
properties. As a result, our inventory rose to 107 homes as of September 30, 2016 (up 15 year-on-year), andexisting home sales for the six months ended September 30, 2016 reached 75, up 16 year-on-year.
As a result of these factors, sales in the real estate sales segment increased 10.2% year-on-year to ¥20,975
million. Segment profit rose to ¥1,419 million, up 12.1% from the same period of the previous fiscal year.
Construction Material Sales
In the construction material sales segment, new housing starts for wooden houses increased year-on-year for a
ninth consecutive month up to September, and demand continued to grow steadily. Meanwhile, the prices for precut materials (especially chipboard for floors and walls) began rising as the demand for wood used in housing
grew steadily. Under these circumstances, with regard to the sale of pre-cut materials, orders from small andmedium-sized builders' offices and in the non-residential buildings segments remained low due to competition
with leading companies. However, as a result of our efforts to expand the sale of housing equipment andconstruction materials other than pre-cut materials, we managed to maintain a level of net sales that is almost
equivalent (a slight increase) to that for the same period of the previous fiscal year. On the other hand, segment
profit decreased due to tough conditions in terms of securing new orders and the effects of increases in the prices
of wood.
As a result of these initiatives, sales in the construction materials sales segment increased 1.5% year-on-yearto ¥1,510 million. Segment profit rose to ¥78 million, down 16.7% from a year earlier.
Real Estate Leasing
In the real estate leasing segment, the vacancy rate at prime properties in particular continued to decline in theoffice market in and around Utsunomiya City, Tochigi Prefecture, which is our main market. Also, in the parking
lot market, competition remained tough due to an upward trend in pay-by-the-hour parking lots supply. Under
these circumstances, sales decreased as a result of our changing the use of some assets from rental to commercial
during the last period and selling one pay-by-the-hour parking lot (Mito City, Ibaraki Prefecture) while notacquiring any new assets. In terms of segment profit, we suffered a significant decrease due to the effects ofdecreased sales as well as an increase in administration costs that we had incurred in the course of carrying out
major maintenance work on tenant buildings during the first quarter.
As a result of these factors, sales in the real estate sales segment decreased by 1.1% year-on-year to ¥129
million. Segment profit declined to ¥71 million, down 17.3% year-on-year.
(2) Explanation regarding Financial Position
a. Balance Sheet
Total consolidated assets as of September 30, 2016 were ¥42,663 million, up ¥3,118 million from theprevious consolidated fiscal year, due mainly to an increase in current assets. This was chiefly due to an increasein cash deposits, as well as an increase in inventories owing mainly to the purchase, development andconstruction of property for sale.
Total liabilities increased by ¥2,368 million to ¥25,290 million. This is mainly due to an increase in shortterm loans payable as a result of increased inventories.
Total net assets stood at ¥17,373 million as of September 30, 2016. This represents an increase of ¥749
million from the balance recorded as of March 31, 2016. After accounting for the payment of dividends, thisincrease was largely due to the acquisition of net income attributable to owners of the parent company.
b. Cash Flows
Cash flows from operating and investing activities resulted in decreases in cash and cash equivalents
respectively, and cash flows from financing activities resulted in an increase in cash and cash equivalents during
the six months ended September 30, 2016. As a result, the balance of cash and cash equivalents at the end of theperiod amounted to ¥8,410 million, up ¥1,297 million from the end of the previous fiscal year.
―3―

The status of the Company's cash flows and factors contributing to changes thereto for the six months ended
September 30, 2016, are as follows.
(Cash Flows from Operating Activities)
Net cash used in operating activities amounted to ¥1,293 million (decrease of ¥161 million for the six months
ended September 30, 2015). This was largely due to a significant increase in inventories (an increase of ¥2,596
million) resulting from our efforts to boost our inventory of property for sale both in terms of quality and quantity,
as well as the payment of income taxes that more than offset an increase in net income before income taxes.
(Cash Flows from Investment Activities)
Net cash used in investment activities amounted to a decrease of ¥225 million owing to increased payments
for the purchase of property, plant and equipment (compared to a decrease of ¥377 million for the six months
ended September 30, 2015). The costs incurred for the acquired property, plant and equipment consisted mainlyof the construction costs (construction in progress) for buildings under construction that will be used as the new
business site in southern Tochigi Prefecture (prefectural south branch).
(Cash Flows from Financing Activities)
Net cash provided by financing activities amounted to ¥2,146 million (increase of ¥1,038 million for the six
months ended September 30, 2015). This was mainly due to an increase in short-term loans payable to support
the acquisition of inventory and an increase in long-term loans payable to support the construction of buildings
for commercial use, despite dividends being paid.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There is no change to financial forecasts announced on May 9, 2016.
2. MATTERS CONCERNING SUMMARY INFORMATION (Notes)(1) Changes of Important Subsidiaries during the Period
Not applicable.
(2) Adoption of Specific Methods for Preparation of the Quarterly Consolidated Financial Statements
Not applicable.
(3) Changes in Accounting Policies, Accounting Estimates, and Restatements(Changes in accounting policies)(Application of "Revised Implementation Guidance on Recoverability of Deferred Tax Assets")
We have applied "Revised Implementation Guidance on Recoverability of Deferred Tax Assets" (ASBJ
Guidance No. 26, March 28, 2016) (hereinafter, the "Recoverability Implementation Guidance") from the firstquarter ended June 30, 2016 and partially revised the accounting method of recoverability of deferred tax assets.
The Recoverability Implementation Guidance has been applied in accordance with the transitional
treatment set forth in Article 49-4 of the Recoverability Implementation Guidance. The differences between(i) the amounts of deferred tax assets and deferred tax liabilities when provisions applicable from paragraphs
1 to 3 of Article 49-3 of the Recoverability Implementation Guidance were applied as of April 1, 2016, and(ii) the amounts of deferred tax assets and deferred tax liabilities at the end of the fiscal year ended March 31,
2016, were added to Retained Earnings as of April 1, 2016.
As a result, Deferred Tax Assets (investments and other assets) and Retained Earnings increased by¥31,883 thousand as of April 1, 2016.
(Application of Practical Solution on a change in depreciation method due to Tax Reform 2016)
Pursuant to the revised Corporation Tax Law, we have applied "Practical Solution on a change indepreciation method due to Tax Reform 2016" (Practical Issues Task Force No. 32, June 17, 2016) starting in
the consolidated first quarter under review. Accordingly, we have changed the depreciation method applied tostructures which were acquired on or later than April 1, 2016 from the declining balance method to thestraight line method.
As a result, the operating income, ordinary income, and net income before income taxes have eachincreased by ¥389 thousand.
―4―3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2016(As of March 31, 2016)

Second Quarter of FY2017(As of September 30, 2016)

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

7,789,687

8,410,005

523,636

596,041

11,423,421

9,854,555

10,5398,263

7,996,211

12,174,751

Merchandise and finished goods

206,665

195,070

Raw materials and supplies

115,304

116,316

Deferred tax assets

130,226

124,927

Other

955,924

640,615

Allowance for doubtful accounts(3,588)(5,100)29,148,028

32,115,447

3,123,508

3,052,486

11,457

9,715

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets

56,696

63,2125,599,701

5,599,789

76,55960,947

148,441

280,3889,016,365

9,066,540

66,447

67,290889,407907,266

Investments and other assets
Investment securities
Long-term loans receivable

20,446

19,900

Deferred tax assets

160,847

207,352

Other

260,837

300,482

Allowance for doubtful accounts(17,279)(21,076)

Total investments and other assets

1,314,260

1,413,924

10,397,072

10,547,754

39,545,100

42,663,202

Total non-current assets
Total assets―5―

(Thousands of Yen)FY2016(As of March 31, 2016)

Second Quarter of FY2017(As of September 30, 2016)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,054,103

3,021,139

Short-term loans payable

16,014,500

18,126,000

Current portion of long-term loans payable

382,592

471,458

Current portion of bonds

21,00021,000

Lease obligations

41,21437,373

Income taxes payable

566,028

441,221

Provision for warranties for completed construction

54,94057,788

Other694,477

667,937

20,828,856

22,843,917

108,000

97,500Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable

1,358,183

1,681,568

Lease obligations

39,13926,004

Provision for directors' retirement benefits

100,979

116,654

Net defined benefit liability

428,790467,202

Asset retirement obligations

4,203

4,226

Other
Total non-current liabilities
Total liabilities

53,69052,956

2,092,985

2,446,112

22,921,841

25,290,030

2,077,500

2,077,500

Net assets
Shareholders' equity
Capital stock
Capital surplus

2,205,165

2,205,165

Retained earnings

12,551,499

13,263,200

Treasury shares
Total shareholders' equity(351,831)(351,831)

16,482,333

17,194,034

Accumulated other comprehensive income
Valuation difference on available-for-sale securities(34,074)(20,862)

Total accumulated other comprehensive income(34,074)(20,862)

175,000

200,000

16,623,258

17,373,172

39,545,100

42,663,202

Subscription rights to shares
Total net assets
Total liabilities and net assets―6―

(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated cumulative second quarter)(Thousands of Yen)
Six months ended
September 30, 2015
(From April 1, 2015 to
September 30, 2015)

Six months ended
September 30, 2016
(From April 1, 2016 to
September 30, 2016)

Net sales

20,659,159

22,614,869

Cost of sales

17,033,311

18,670,041

Gross profit

3,625,847

3,944,828

Selling, general and administrative expenses

2,258,056

2,430,860

Operating income

1,367,791

1,513,967

Interest income

892

734

Dividends income

2,455

2,454

Non-operating income

Operations consignment fee

110,742

117,124

Office work fee

72,27980,275

Other

12,67814,924

Total non-operating income

199,047

215,512

Non-operating expenses
148,697

156,168

Commission for syndicate loan

Interest expenses

–

2,250

Total non-operating expenses

148,697

158,418

1,418,141

1,571,061

4,168

8,145

Ordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on cancellation of lease contracts

–

45

4,168

8,191

1,413,972

1,562,870

Income taxes – current

542,753

552,838

Income taxes – deferred(22,870)(15,109)

Total income taxes

519,883

537,729

Net income

894,088

1,025,140

Total extraordinary loss
Net income before income taxes

Net income attributable to non-controlling interests
Net income attributable to owners of the parent company

―7―

–

–

894,088

1,025,140

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative second quarter)(Thousands of Yen)
Six months ended
September 30, 2015
(From April 1, 2015
to September 30, 2015)
Net income

Six months ended
September 30, 2016
(From April 1, 2016
to September 30, 2016)

894,088

1,025,140

Valuation difference on available-for-sale securities(2,038)13,212

Total other comprehensive income(2,038)13,212892,050

1,038,353

892,050

1,038,353––

Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
company
Comprehensive income attributable to non-controllinginterests―8―

(3) Quarterly Consolidated Statements of Cash Flows(Thousands of Yen)
Six months ended September
30, 2015 (From April 1, 2015
to September 30, 2015)

Six months ended September
30, 2016 (From April 1, 2016
to September 30, 2016)

Cash flows from operating activities
Net income before income taxes

1,413,972

1,562,870

Depreciation and amortization

119,935

131,359

Stock compensation expense
Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in provision for warranties for completed
construction
Increase (decrease) in allowance for doubtful accounts

50,00024,99914,875

15,675

2,005

2,848

13,143

5,309

Increase (decrease) in net defined benefit liability

36,00738,412

Interest and dividends income(3,347)(3,188)Interest expenses

148,697

156,168

Loss on retirement of non-current assets

4,168

8,145

Decrease (increase) in notes and accounts receivable-trade22,951(72,404)(1,228,932)(2,596,816)

Increase (decrease) in notes and accounts payable-trade123,115(32,963)

Other(36,095)

314,421

Subtotal

680,497(445,162)

3,300

4,322

Interest expenses paid

(152,474)(157,994)

Income taxes paid

(693,232)(694,395)

Net cash provided by (used in) operating activities(161,908)(1,293,230)(140,514)(186,887)(2,400)(14,514)

Decrease (increase) in inventories

Interest and dividends income received

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments of loans receivable(214,600)–(1,500)–

Collection of loans receivable

658

546

Payments for guarantee deposits(24,600)(29,300)

Other payments(6,540)(7,819)Other proceeds
Net cash provided by (used in) investing activities

12,02012,000(377,475)(225,974)

Cash flows from financing activities
1,515,510

2,111,500

Proceeds from long-term loans payable–

630,000

Repayment of long-term loans payable(213,232)(217,749)

Redemption of bonds(10,500)(10,500)(16)–

Cash dividends paid

(229,705)(344,580)

Repayments of lease obligations(23,985)(22,147)

1,038,070

2,146,522

Net increase (decrease) in short-term loans payable

Purchase of treasury shares

Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents

498,685

627,317

Cash and cash equivalents at beginning of the period

6,614,018

7,782,687

Cash and cash equivalents at end of the period

7,112,703

8,410,005―9―

(4) 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.
(Segment and Other Information)
Segment Information
I. The six months ended September 30, 2015 (April 1, 2015 to September 30, 2015)
1. Information relating to the amounts of net sales, profit and loss by reportable segment
Reportable Segment

Net sales
Sales to outside
customers
Intersegment sales
and 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

19,040,346

1,488,346

130,466

20,659,159—

20,659,159—

1,612,037

41,186

1,653,223(1,653,223)—

19,040,346
1,266,052

3,100,384
94,627

171,652
86,642

22,312,383
1,447,322(1,653,223)(29,181)

20,659,159
1,418,141

Total

Notes: 1 Adjustments of segment profit (−¥29,181 thousand) are eliminations of intersegment transactions.
2 Segment profit has been adjusted to 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 six months ended September 30, 2016 (April 1, 2016 to September 30, 2016)
1. Information relating to the amounts of net sales, profit and loss by reportable segment
Reportable Segment

Net sales
Sales to outside
customers
Intersegment sales
and 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

20,975,266

1,510,578

129,024

22,614,869—

22,614,869—

1,666,316

41,2501,707,566(1,707,566)—

20,975,266
1,419,551

3,176,894
78,803

170,274
71,62424,322,435
1,569,979(1,707,566)
1,081

22,614,869
1,571,061

Total

Notes: 1 Adjustments of segment profit ¥1,081 thousand are eliminations of intersegment transactions.
2 Segment profit has been adjusted to 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.

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