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 First Quarter of Fiscal 2023 Ending March 31, 2023 (Japanese GAAP)
August 8, 2022
Grandy House Corporation
Stock Exchange Listing: Tokyo Stock Exchange
8999
URL:
https://www.grandy.co.jp
Yasuro Hayashi, President
Atsuo Saito, Executive Vice President, General Manager,
Inquiries:
TEL: +81-28-650-7777
Corporate Administrative Division
Scheduled date of quarterly securities report filing:
August 10, 2022
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 First Quarter of the Fiscal Year Ending March 31, 2023
(April 1, 2022 to June 30, 2022)(1) Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Net Sales

Operating Income

Net Income Attributableto Owners of the Parent(¥ million)%

Ordinary Income(¥ million)%(¥ million)%(¥ million)%

13,925

6.0

1,049

8.6

1,005

9.5

728

15.0

13,134

40.1

966

―

918

―

633

―

Three months ended
June 30, 2022
Three months ended
June 30, 2021
Note: Comprehensive income

Three months ended June 30, 2022: ¥733 million (18.4%)
Three months ended June 30, 2021: ¥619 million (-%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Three months ended
June 30, 2022
Three months ended
June 30, 2021

25.17

25.00

21.65

21.46

(2) Consolidated Financial Position

June 30, 2022
March 31, 2022
Reference: Shareholders' equity

Total Assets
Net Assets(¥ million)(¥ million)
62,311
24,52260,901
24,660June 30, 2022:¥24,457 million
March 31, 2022: ¥24,592 million

Shareholders' Equity Ratio
%
39.3
40.4

Net Assets per Share(¥)
844.28850.82

2. Dividends
Annual Dividend per Share
1Q-EndFiscal 2022
Fiscal 2023

2Q-End(¥)――

3Q-End(¥)
0.00

Period-End(¥)―

Fiscal 2023 (Forecast)
0.00―
Note: Revisions to the most recently announced forecast of cash dividends in the current quarter: None

Total

(¥)
30.00

(¥)
30.00

32.00

32.00

3. Consolidated Financial Forecasts for Fiscal 2023 (April 1, 2022 to March 31, 2023)(Percentage figures show the year-on-year increase (decrease).)Net Income
Net Sales
Operating Income
Ordinary Income
Attributable to
Net Income per ShareOwners of the Parent(¥ million)% (¥ million)% (¥ million)% (¥ million)%(¥)
Full Fiscal Year58,000
5.7
4,070
1.2
3,820
0.3
2,600
0.6
89.95
Note: Revisions to the most recently announced financial forecasts in the current quarter: None

* Notes(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) Adoption of specific methods for preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and restatement of revisions
1) Changes in accounting policies due to revision to accounting standards, etc.: None
2) Changes in accounting policies other than 1):
None3) Changes in accounting estimates:
None4) Restatements:
None(4) Number of issued shares (common stock)1) Number of issued shares(including treasury shares)
2) Number of treasury shares

June 30, 2022

30,823,200 shares March 31, 2022

30,823,200 shares

June 30, 2022

1,854,645 shares March 31, 2022

1,918,845 shares

Three months ended
Three months ended
28,935,480 shares
29,250,555 shares
3) Average number of shares during the period
June 30, 2022
June 30, 2021
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" (1,154,800 shares on June 30, 2022, 1,194,000 shares on March 31, 2022). The shares of
the Company held by "Grandy House Employee Stock Holding Partnership Exclusive Trust Account" are included in treasury sharesand deducted from the calculation of the average number of shares during the period (1,175,375 shares for the three months ended June30, 2022, 184,477 shares for the fiscal year ended March 31, 2022).

*

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 first quarter) .......................................................................................................6(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative first 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) .......................................................................................................................................9― 1 ―1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
In the cumulative three-month period ended June 30, 2022, the Japanese economy saw the moderate recovery
from the impact of the spread of COVID-19 infections. On the other hand, the outlook remained uncertain due tothe influence of the Ukraine crisis, lockdowns in China and concern over a cost increase caused by the
weakening yen.
In the housing sector, there were prolonged conditions that required a close watch over the impact on housing
demand, such as a rise in housing prices resulting from rising prices and shortages of wood, as well as surging
prices and shortages of other materials.
On the other hand, the number of new housing (detached houses for sale) starts has marked a year-on-yearincrease for the 14 straight months up to this June mainly due to a rising interest in housing and lifestyles under
the coronavirus (COVID-19) crisis and the continued effects of support measures taken to promote homeacquisition and a low interest rate policy.
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), which was announced in August2021. Accordingly, the Group has made efforts to further improve its corporate value and expand its businesses.
With regards to new home sales, our core business, we engaged in sales promotion through web marketing
utilizing IT and digital tools, and the implementation of various events including the "20,000 Homes Sold! More
Smile" campaign. On the product side, we focused on development of homes that met demands for ZEH andspecifications for the new normal as people's interest in housing and lifestyles under the coronavirus (COVID-19)
crisis was rising.
Moreover, in existing home sales, we strove to strengthen our procurement for business expansion despite thecontinued tough conditions involving a decrease in the supplies of recently-built existing homes and theirpurchasing prices staying high.
As a result of these initiatives, the Grandy House Group's consolidated cumulative operating results for the
first quarter of fiscal 2023 under review were as follows: net sales were ¥13,925 million, an increase of 6.0%
year-on-year; operating income rose to ¥1,049 million, an increase of 8.6% year-on-year; ordinary income was¥1,005 million, an increase of 9.5% year-on-year; and net income attributable to owners of the parent totaled¥728 million, an increase of 15.0% year-on-year.
Operating results by business segment are presented as follows.
a. Real Estate Sales
In new home sales, we have continued to implement thorough infection prevention measures and focus on
non-contact sales activities, with the safety and security of our customers and employees given top priority, and
we engaged in expanding our business in the Tokyo metropolitan area and further cultivating our existing sales
area of northern Kanto.
In the Tokyo metropolitan area (including Saitama, Chiba, and Kanagawa), which we position as being our
key area for a business area expansion, we worked to popularize our brand mainly through marketing that was
based on IT and digital tools utilizing websites, etc., thereby developing business that was intended to spread ourbusiness areas "from dots to planes" by enhancing the business sites in each area. In northern Kanto (Tochigi,
Ibaraki, and Gunma), we pushed sales promotional activities through events including the "20,000 Homes Sold!
More Smile" campaign. Furthermore, the sales of homes, which we started in the previous fiscal year, gained
momentum in "Sora Town Tsukuba Matsushiro," a strategic large-scale housing project (with a total of 96 lots,
Tsukuba City, Ibaraki Prefecture), in which all new homes employed a net-zero-energy house system (ZEH), as
the construction of the new houses has progressed and a streetscape is appearing.
On the product side, we endeavored to build healthy and comfortable homes by measures such as adopting
the ZEH standard as the insulation specifications of detached houses for sale, as teleworking and other new
lifestyles are taking root and interest in a sustainable living environment is mounting.
Thanks to these efforts, the number of new homes sold in the consolidated cumulative first quarter of fiscal
2023 under review was 367 (an increase of 4 homes year-on-year).
Demand for existing homes remained robust. However, with regard to procurement, their prices stayed highsince supplies of recently-built existing homes declined. Under the circumstances, we made efforts to reinforce― 2 ―and expand our product inventory through measures such as strengthening cooperation with brokers and actively
taking part in auctions. Through these efforts, the number of homes sold for the consolidated cumulative firstquarter of fiscal 2023 under review was 35 (a decrease of 3 homes year-on-year).
As a result, sales in the real estate sales segment in the consolidated cumulative first quarter of fiscal 2023
under review increased by 4.0% year-on-year to ¥12,830 million. We had a segment profit of ¥844 million, an
increase of 3.9% year-on-year.
b. Construction Material Sales
In construction material sales, amid concerns about the impact of surging wood material prices, the number of
new housing starts for wooden houses marked a year-on-year decrease for the three consecutive months from thispast April.
Under these circumstances, we have focused on measures such as maintaining purchase volumes throughstrengthening the supply chain and passing the cost increments on in the selling price. As a result, sales of theconstruction material sales segment in the consolidated cumulative first quarter of fiscal 2023 under review
increased by 40.2% year-on-year to ¥1,019 million, with a segment profit of ¥109 million, an increase of 59.1%
year-on-year.
c. Real Estate Leasing
In real estate leasing, whereas the properties with new equipment are in high demand in the office leasing
market of the Utsunomiya area, properties with obsolete equipment tend to remain vacant for a longer period,
promoting market polarization. In the parking market, the operational rate of pay-by-the-hour parking lots, which
had remained low due to restrictions on movements under the coronavirus (COVID-19) crisis, was on a recovery
path due to the reopening of social and economic activities.
Under these circumstances, operating results in the consolidated cumulative first quarter of fiscal 2023 underreview showed year-on-year increases in both sales and profit. Sales were ¥75 million, an increase of 10.3%
year-on-year, and segment profit was ¥47 million, an increase of 91.1% year-on-year. The reasons were that there
were no plans, such for large-scale renovations, compared to the same period a year earlier, and that properties
that had been acquired in the previous fiscal year contributed to the increase in operating results.
(2) Explanation regarding Financial Position
As of the end of the first quarter of consolidated fiscal 2023 under review, consolidated total assets rose to¥62,311 million, an increase of ¥1,409 million compared to the end of the previous consolidated fiscal year. Thiswas primarily due to an increase in inventories due to various factors, such as the acquisition of housing lots toreflect the expanded area of the real estate sales business.
Liabilities stood at ¥37,788 million, an increase of ¥1,546 million compared to the end of the previous
consolidated fiscal year. This was mainly due to an increase in loans payable in association with the acquisitionof housing lots, mentioned above, and others.
Total net assets stood at ¥24,522 million, down ¥137 million compared to the end of the previous
consolidated fiscal year. This was due to the payment of dividends despite the acquisition of net income
attributable to owners of the parent.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There have been no changes from the consolidated financial forecasts announced on May 9, 2022.

― 3 ―2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)
Fiscal 2022
(As of March 31, 2022)

First Quarter of Fiscal 2023
(As of June 30, 2022)

AssetsCurrent assets
11,098,044

10,929,214

702,666

725,853

8,129,757

7,914,810

7,246

13,568

Real estate for sale in process

26,090,400

27,474,559

Merchandise and finished goods

350,922432,193

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

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

279,751

283,048

1,100,457

1,602,254(4,398)(319)

47,754,848

49,375,181

Non-current assets
Property, plant and equipment
3,784,259

3,766,350

Machinery, equipment and vehicles, net

26,75924,990Tools, furniture and fixtures, net

55,59351,962

6,063,224

6,038,242

92,41984,565

Buildings and structures, net

Land
Leased assets, net

19,064

11,026

10,041,319

9,977,136

1,028,445

994,163

51,28453,5191,079,729

1,047,683

Investment securities

143,000

148,500

Long-term loans receivable

14,601

9,922

Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

647,621542,347

Other

1,175,569

1,170,042

Total investments and other assets

1,980,792

1,870,812

13,101,841

12,895,632

Bond issuance costs

45,286

40,412

Total deferred assets

45,286

40,41260,901,976

62,311,227

Deferred tax assets

Total non-current assets
Deferred assets

Total assets― 4 ―(Thousands of Yen)
Fiscal 2022
(As of March 31, 2022)

First Quarter of Fiscal 2023
(As of June 30, 2022)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,870,228

3,939,777

Short-term loans payable

13,082,700

13,954,300

Current portion of bonds

1,000,000

1,500,000

Current portion of long-term loans payable

2,604,311

3,379,653

Lease obligations

34,201

33,949

Income taxes payable

899,770

216,524

Provision for warranties for completed construction

185,469

187,655

Other

1,105,187

1,439,700

Total current liabilities

22,781,868

24,651,559

Bonds payable

2,300,000

1,800,000

Long-term loans payableNon-current liabilities
9,820,280

9,968,781

Lease obligations

67,64759,142

Provision for directors' retirement benefits

251,695

235,450

Net defined benefit liability

904,811927,657

Other

115,459

145,727

13,459,893

13,136,757

36,241,762

37,788,317

Capital stock

2,077,500

2,077,500

Capital surplus

2,592,335

2,599,660

Retained earnings

20,718,007

20,543,459

Treasury shares(813,488)(786,570)

24,574,354

24,434,050

Valuation difference on available-for-sale securities

18,00023,500Total accumulated other comprehensive income

18,00023,50067,86065,36024,660,214

24,522,910

60,901,976

62,311,227

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 first quarter)(Thousands of Yen)
Three months ended
June 30, 2021
(From April 1, 2021 toJune 30, 2021)

Three months ended
June 30, 2022
(From April 1, 2022 toJune 30, 2022)

Net Sales

13,134,714

13,925,325

Cost of sales

10,594,527

11,294,854

Gross profit

2,540,187

2,630,471

Selling, general and administrative expenses

1,573,813

1,580,718

966,374

1,049,752

Operating income
Non-operating income
Interest income

223

23

Dividends income

2,861

2,861

Commission

8,189

7,697

Other

8,069

15,447

Total non-operating income

19,34326,029Interest expenses

60,63560,509Commission for syndicate loan

2,866

4,554

Non-operating expenses

Other

3,697

4,997

Total non-operating expenses

67,20070,060Ordinary income

918,517

1,005,721

Gain on sales of non-current assets

18,62084,432

Total extraordinary income

18,62084,432

3,748

3,585

Extraordinary income

Extraordinary loss
Loss on retirement of non-current assets
Total extraordinary loss

3,748

3,585

Net income before income taxes

933,388

1,086,568

Income taxes – current

269,617

252,890

Income taxes – deferred

30,519105,274

Total income taxes

300,137

358,165

Net income

633,251

728,403

Net income attributable to owners of the parent

633,251

728,403― 6 ―(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative first quarter)(Thousands of Yen)

Net income

Three months ended
June 30, 2021
(From April 1, 2021 toJune 30, 2021)

Three months ended
June 30, 2022
(From April 1, 2022 toJune 30, 2022)

633,251

728,403(13,500)

5,500

Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income(13,500)

5,500

619,751

733,903619,751

733,903––

Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests― 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 the assumptions concerning the impact of COVID-19 that
we provided as (additional information) in our securities report for fiscal 2022.
(Transactions for Distributing the Company's Own Stock to Employees, etc. through Trusts)
The Company has adopted the "trust-type employee stock holding incentive plan (E-Ship®)" (hereinafterreferred to as "the Plan") for the purpose of providing its employees with incentives to enhance the corporate
value of the Company on a medium-to long-term basis.
(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 atrust bank. The Trust will acquire in advance after its establishment the number of Grandy House shares to be
expected to be acquired by the Stock Partnership over a six-year period. At a later date, the Trust will sell its
holdings of Grandy House shares to the Stock Partnership on a continual basis. If an amount equivalent to thegains from sale of shares is accumulated at the end of the term of the Trust, the relevant amount equivalent to thegains 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 from sale of shares accumulates due to a decline in the price ofshares 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 book value andthe number of the relevant treasury shares are ¥688,938 thousand and 1,194,000 shares for the previous
consolidated fiscal year, and ¥666,319 thousand and 1,154,800 shares for the consolidated first quarter of fiscal
2023 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 first quarter of fiscal 2023 under review: ¥690,870 thousand― 8 ―(Segment Information)
I. The cumulative three months ended June 30, 2021 (April 1, 2021 to June 30, 2021)
1. Information concerning the amounts of net sales and profit or loss by reportable segment
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

Adjustments(Note 1)Net Sales
Sales to external
12,339,107
727,533
68,074
13,134,714–
customers
Inter-segment sales
12,510804,641
20,266
837,417(837,417)
or transfers
Total
12,351,617
1,532,174
88,34013,972,132(837,417)
Segment profit
812,765
68,991
24,889906,645
11,871
Notes: 1 Adjustments of segment profit (¥11,871 thousand) are eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

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

13,134,714–
13,134,714
918,517

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.
II. The cumulative three months ended June 30, 2022 (April 1, 2022 to June 30, 2022)
1. Information relating to the amounts of net sales and profit or loss by reportable segment
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

Adjustments(Note 1)Net Sales
Sales to external
12,830,516
1,019,751
75,057
13,925,325–
customers
Inter-segment sales
13,3801,180,061
20,464
1,213,905(1,213,905)
or transfers
Total
12,843,896
2,199,812
95,522
15,139,231(1,213,905)
Segment profit
844,731
109,738
47,5701,002,040
3,680
Notes: 1 Adjustments of segment profit (¥3,680 thousand) are eliminations of inter-segment transactions.
2 Segment profit has been adjusted to ordinary income described in quarterly consolidated statements of income.

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

13,925,325–
13,925,325
1,005,721

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

― 9 ―