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 Third Quarter of Fiscal 2015 Ending March 31, 2015 (Japanese GAAP)
February 2, 2015
Tokyo Stock Exchange
http://www.grandy.co.jp

Company Name:Grandy House Corporation
Stock Exchange Listing:
Securities Code:
8999
URL:
Representative:
Hiroyuki Murata, President
Inquiries:
Atsuo Saito, Senior Managing Director
Scheduled date of quarterly securities report filing:
February 5, 2015
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
None
Quarterly results briefing held:
None

TEL: +81-28-650-7777(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, 2015
(April 1, 2014 to December 31, 2014)(1) Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Operating Income
Ordinary Income
Net Income(¥ million)%(¥ million)%(¥ million)%

Net Sales(¥ million)%

27,056

(2.3)

1,613

(27.6)

1,685(27.0)

1,033(26.1)

27,688

14.1

2,229

27.8

2,307

28.5

1,398

35.5

Nine months ended
December 31, 2014
Nine months ended
December 31, 2013
Note: Comprehensive Income

Nine months ended December 31, 2014: ¥1,042 million (−25.7%)
Nine months ended December 31, 2013: ¥1,402 million (35.8%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Nine months ended
December 31, 2014
Nine months ended
December 31, 2013

35.91

—

48.61

—

(2) Consolidated Financial Position
Total Assets

Net Assets(¥ million)
34,96333,524

December 31, 2014
March 31, 2014
Reference: Shareholders’ equity

Shareholders’ Equity
Ratio(¥ million)
14,517
13,655Net Assets per Share

%
41.4
40.7

(¥)
502.75474.53

December 31, 2014: ¥14,467 million
March 31, 2014: ¥13,655 million

2. Dividends
1Q-End2Q-End(¥)——

Fiscal 2014
Fiscal 2015
Fiscal 2015 (Forecast)

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

Period-End

Total
(¥)
8.00

(¥)
8.00

8.00

8.00

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

3. Consolidated Financial Forecasts for Fiscal 2015 (April 1, 2014 to March 31, 2015)

Full Fiscal YearNet Sales(¥ million)
38,000%
2.0(Percentage figures show the year-on-year increase (decrease) for each corresponding period.)
Operating Income
Ordinary Income
Net Income
Net Income per Share(¥ million)%(¥ million)%(¥ million)%(¥)
2,200 (25.0)
2,340(22.9)
1,460(17.2)
50.73

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
December 31,
as of the period-end (including treasury shares) 2014
December 31,
2) Number of treasury shares
3) Average number of shares issued andoutstanding for the period

2014
Nine months
ended December
31, 2014

None
None
None
None

30,823,200 shares

March 31, 201430,823,200 shares

2,046,198 shares

March 31, 2014

2,046,198 shares

28,777,002 shares

Nine months
ended December
31, 2013

28,777,002 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 ............................................ 3
2. MATTERS CONCERNING SUMMARY INFORMATION (Notes) .................................................................... 3(1) Changes of Important Subsidiaries during the Period ............................................................................................. 3(2) Adoption of Specific Methods for Preparation of the Quarterly Consolidated Financial Statements ..................... 3(3) Changes in Accounting Policies, Accounting Estimates, and Restatements ........................................................... 3
3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS ........................................................................ 4(1) Quarterly Consolidated Balance Sheets................................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............. 6(Quarterly Consolidated Statements of Income) .....................................................................................................6(Quarterly Consolidated Statements of Comprehensive Income)............................................................................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(Segment and Other Information)............................................................................................................................8―1―

1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
Uncertainties as to when a recovery might occur prevailed in the Japanese economy during the nine-month
period up until December 31, 2014. As anticipated, there was a pullback from the last-minute surge in demand
triggered by April’s consumption tax hike, but even after the predicted timing for a recovery had passed,
consumer demand remained persistently low due to higher prices resulting from the tax increase and thedepreciation of the yen. The effects of these uncertainties included the Japanese government postponing a further
consumption tax increase that had been planned for October 2015.
In the housing sector, home orders remained sluggish. Although the number of new housing starts reached astable level, there was still a year-on-year decrease for each of the ten consecutive months until December. Thiswas due to the prolonged influence of the consumption tax hike mentioned above, which continued despitemeasures implemented to mitigate the burden, such as expanded income tax credit for housing loans and aprovision of benefits for housing acquisition (housing allowances), as well as an all-time low mortgage rate.
Against this background, the Grandy House Group worked hard to expand its operating base and increase
market share in line with its theme of “further strengthening the Group’s core business (real estate sales)”through various approaches to attract customers. These included an event to commemorate the achievement of
total sales of 10,000 homes. However, there was only a slow recovery in people’s willingness to purchase homes,
even though the effects that the tax hike had on housing demand moderated after the summer. Customers werestill cautious and took time over the decision to sign a contract. Although home orders showed a certain level ofrecovery, the Group was unable to compensate for the decline in the first half. As a result, financial forecasts forthe full fiscal year 2015 were revised downward (as of October 24, 2014).
As a result of these factors, the Grandy House Group’s consolidated results for the third quarter of Fiscal
2015 were as follows. Net sales were ¥27,056 million, down 2.3% from the same period of the previous fiscal
year; operating income fell to ¥1,613 million, a decline of 27.6%; ordinary income was ¥1,685 million, a declineof 27.0%; and net income totaled ¥1,033 million, a decline of 26.1%.
Results by business segment are presented as follows.
Real Estate Sales
In the new home sales business, from the summer, with the effects of the consumption tax hike having
moderated, we focused more on home sales promotion activities by holding events to attract customers, such as
the campaign to commemorate the achievement of total sales of 10,000 homes. In terms of product features, we
endeavored to respond to changes in our customers’ needs arising from such factors as the aging society andchanges in family composition. We faced a harsh environment in terms of home orders. Orders for custom-built
homes from people wanting to have their homes rebuilt or who hold land were sluggish, so custom-built home
manufacturers began pushing into developer-built homes markets. In addition, the postponement of theconsumption tax hike has allowed customers to take ample time over decisions to sign a home purchase contract.
Under these circumstances, home orders showed a certain level of recovery after August, with the number ofhome orders for the third quarter exceeding the one for the same period in the previous year. However, new homesales for the first nine months of the fiscal year under review fell 17 units on a year-on-year basis to 840 units,
failing to recover from the decline in the first quarter. Existing home sales were at 82 units, down 19 on a yearon-year basis. This was due to the inability of the purchase environment to improve, with no recovery in people’s
willingness to purchase homes.
As a result of these factors, revenues in the real estate sales segment declined 2.5% year-on-year to ¥24,955
million. Segment profit fell to ¥1,494 million, down 30.4% from the same period of the previous fiscal year.
Construction Material Sales
In the construction material sales segment, orders were sluggish due to a slump in new housing starts. On theother hand, the price of wood, a major construction material, remained unchanged. Under these circumstances,
we continued to carry out the careful sales targeting of customers and promoted the selling of processed
construction materials in addition to pre-cut materials. Although both revenues and profits in the construction
material sales segment increased in the third quarter compared to the previous quarter as a result of these
initiatives, revenues for the first nine months were 0.5% lower than those for the same period in the previous
fiscal year, at ¥1,888 million. Segment profit rose to ¥127 million, up 56.6% year-on-year.

―2―Real Estate Leasing
In the real estate leasing segment, the leasing market around Utsunomiya—a major area of businessdevelopment—remained stable. The vacancy rate of office buildings for leasing continued to be low around botheast and west exit districts of Utsunomiya Station with new business units being moved into and businesses inother units either expanding or relocating. Under these circumstances, we continued to work to obtain new clientsand increase the use of pay-by-the-hour parking lots. As a result, for the nine months ended December 31, 2014,
revenues in the real estate leasing segment totaled ¥212 million, up 8.3% from the same period of the previous
fiscal year. Segment profit rose by 25.4% to ¥130 million.
(2) Explanation regarding Financial Position
Total assets stood at ¥34,963 million as of December 31, 2014, up ¥1,438 million compared with the end of
the previous fiscal year. This upswing was mainly due to an increase in current assets, resulting from a slowdown
in new home sales following the consumption tax hike and from our efforts to secure more existing homes.
Total liabilities stood at ¥20,445 million as of December 31, 2014, up ¥576 million compared with the end of
the previous fiscal year. In current liabilities, short-term debts grew due to the increase in the amount of realestate for sale. In non-current liabilities, interest-bearing liabilities rose due to an issuance of corporate bonds(¥129 million).
Total net assets stood at ¥14,517 million as of December 31, 2014, up ¥862 million compared with the end of
the previous fiscal year. After accounting for the payment of dividends, this increase was largely attributable tonet income for the nine months under review.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There is no change to financial forecasts announced on October 24, 2014.
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
Not applicable.

―3―3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2014(As of March 31, 2014)

Third Quarter of FY2015(As of December 31, 2014)

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

5,562,541

5,658,010

584,984

527,183

8,903,433

10,540,887

9,388

6,433

7,373,275

6,967,442

Merchandise and finished goods

174,064

167,236

Raw materials and supplies

138,064

115,548

Deferred tax assets

126,944

107,876

Other

321,913405,694

Allowance for doubtful accounts(4,196)(3,924)23,190,415

24,492,389

3,244,425

3,172,208

12,009

9,585

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

42,03851,551

5,817,230

5,931,468

141,378

118,471—

58,245

9,257,082

9,341,530

68,48768,728744,408

758,427

Investments and other assets
Investment securities
Long-term loans receivable

41,70739,729Deferred tax assets

100,514

113,728

Other

155,166

181,194

Allowance for doubtful accounts(32,818)(32,547)

Total investments and other assets

1,008,979

1,060,532

10,334,548

10,470,791

33,524,964

34,963,181

Total non-current assets
Total assets―4―

(Thousands of Yen)FY2014(As of March 31, 2014)

Third Quarter of FY2015(As of December 31, 2014)

Liabilities
Current liabilities
Accounts payable for construction contracts

2,636,832

2,520,402

Short-term loans payable

13,347,080

14,181,200

410,495

431,094

Current portion of long-term loans payable—

21,000

Lease obligations

Current portion of bonds

49,77046,483

Income taxes payable

735,391

273,349

Provision for warranties for completed construction

63,04049,647

Other666,258

749,398

17,908,869

18,272,574—

129,000

Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable

1,461,426

1,505,005

Lease obligations

103,482

79,462

Provision for directors’ retirement benefits

45,166

63,779Net defined benefit liability

286,655

337,688

Other

63,82558,053

1,960,555

2,172,988

19,869,425

20,445,562

Capital stock

2,077,500

2,077,500

Capital surplus

2,205,165

2,205,165

Retained earnings

9,712,087

10,515,120

Treasury shares(351,814)(351,814)

13,642,938

14,445,970

Valuation difference on available-for-sale securities

12,60021,647

Total accumulated other comprehensive income

12,60021,647

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―—50,00013,655,539

14,517,618

33,524,964

34,963,181

(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of Yen)
Nine months ended
December 31, 2013
(From April 1, 2013 to
December 31, 2013)

Nine months ended
December 31, 2014
(From April 1, 2014 toDecember 31, 2014)

Net sales

27,688,827

27,056,351

Cost of sales

22,375,407

22,285,784

Gross profit

5,313,419

4,770,566

Selling, general and administrative expenses

3,084,104

3,157,352

Operating income

2,229,314

1,613,214

Non-operating income
Interest income

838

843

Dividends income

138

4,391

Operations consignment fee

148,177

153,153

Office work fee

108,152

98,058Other

16,72528,066

Total non-operating income

274,032

284,513

195,666

208,992

Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income

—

3,728

195,666

212,7212,307,680

1,685,007

—

1,070

15,592

10,647Extraordinary loss
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on cancellation of leases

107

2,331

15,70014,0482,291,980

1,670,958

Income taxes – current

885,495

636,808

Income taxes – deferred

7,556

900

893,052

637,709

Income before minority interests

1,398,927

1,033,248

Net income

1,398,927

1,033,248

Total extraordinary loss
Income before income taxes and minority interests

Total income taxes―6―

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Nine months ended
December 31, 2013
(From April 1, 2013 to
December 31, 2013)

Nine months ended
December 31, 2014
(From April 1, 2014 toDecember 31, 2014)

1,398,927

1,033,248

Valuation difference on available-for-sale securities

3,231

9,046

Total other comprehensive income

3,231

9,046

1,402,158

1,042,295

1,402,158

1,042,295——

Income before minority interests
Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority 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.
(Segment and Other Information)
I. The nine months ended December 31, 2013 (April 1, 2013 to December 31, 2013)
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

25,594,691

1,897,942

196,192

27,688,827—

27,688,827—

2,040,494

57,0682,097,563(2,097,563)—

25,594,691
2,148,682

3,938,437
81,613

253,261
104,318

29,786,390
2,334,614(2,097,563)(26,934)

27,688,827
2,307,680

Total

Notes: 1 Adjustments of segment profit (−¥26,934 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 nine months ended December 31, 2014 (April 1, 2014 to December 31, 2014)
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

24,955,452

1,888,402

212,496

27,056,351—

27,056,351—

2,193,798

53,8192,247,617(2,247,617)—

24,955,452
1,494,658

4,082,201
127,834

266,315
130,805

29,303,968
1,753,298(2,247,617)(68,291)

27,056,351
1,685,007

Total

Notes: 1 Adjustments of segment profit (−¥68,291 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.

―8―