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 Reportfor the First Quarter of Fiscal 2014 Ending March 31, 2014 (Japanese GAAP)
August 5, 2013
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:
August 8, 2013―
Scheduled date of dividend payment commencement:
None
Preparation of quarterly supplementary explanatory materials:
None
Quarterly results briefing meeting held:(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2014 (April 1,2013 to June 30, 2013)(Percentage figures show the year-on-year increase (decrease))(1) Consolidated Operating Results
Net Sales(¥ million)
Three months ended
June 30, 2013
Three months ended
June 30, 2012
Note: Comprehensive Income

Ordinary Income(¥ million)%

Net Income(¥ million)
%

9,097

11.7

759

14.4

789

19.3

477

24.3

8,142

8.1

664

55.2

661

51.7

384

60.4

Three months ended June 30, 2013: ¥477 million (24.3%)

Net Income per Share(¥)
Three months ended
June 30, 2013
Three months ended
June 30, 2012

Operating Income(¥ million)%%

Three months ended June 30, 2012: ¥384 million (60.4%)

Net Income per Share(Diluted)
(¥)

16.60

―

13.35

―

Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split. Net income per share is calculated on the assumption that stock split was
conducted at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total Assets(¥ million)
June 30, 2013
March 31, 2013

Net Assets(¥ million)
31,271
30,118

Shareholders’ Equity Ratio%
12,35839.5
12,11040.2

Net Assets per Share(¥)
429.45420.84

Reference: Shareholders’ equity June 30, 2013: ¥12,358 million March 31, 2013: ¥12,110 million
Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split. Net assets per share are calculated on the assumption that stock split was
conducted at the beginning of the previous fiscal year.

2. Dividends
Annual Dividend per Shares
1Q-End2Q-End

(¥)

(¥)
―
―

Fiscal 2013
Fiscal 2014
Fiscal 2014 (Forecast)

3Q-End(¥)

Period-End

Total

(¥)

(¥)

0.00

―

24.00

24.00

0.00

―

8.00

8.00

Note: Revisions to the most recently announced forecast of cash dividends in the current quarter: None
Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split.

3. Consolidated Financial Forecasts for Fiscal 2014 (April 1, 2013 to March 31, 2014)

Interim Period
Full Fiscal YearNet Sales(¥ million)%
17,5007.8
36,000
10.6(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)
%
(¥)
1,230
5.1
1,260
5.3
710
5.6
24.67
2,640
13.9
2,700
12.9
1,500
10.2
52.12

Note: Revisions to the most recently announced financial forecasts in the current quarter: None
Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split.

* Explanatory Notes(1) Changes in the number 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 accounting 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 as of theperiod-end (including treasury stock)2) Number of treasury stock3) Average number of shares issued and outstanding forthe period

None
None
None
None

June 30, 201330,823,200 shares March 31, 201330,823,200 shares

June 30, 2013
Three months
ended June 30,
2013

2,046,198 shares March 31, 2013
Three months
28,777,002 shares ended June 30,
2012

2,046,198 shares
28,777,154 shares

Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split. Number of shares issued and outstanding (common stock) is
calculated on the assumption that stock split was conducted at the beginning of the previous fiscal year.

* Disclosure concerning the implementation status of quarterly review proceduresThis quarterly financial report is exempt from the quarterly review procedure provisions stipulated under the Financial Instruments and Exchange
Act of Japan. As of the date of disclosure, quarterly review procedures in connection with quarterly consolidated financial statements were in
progress.
* Explanation concerning the appropriate use of financial 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 Significant Subsidiaries during the Term ............................................................................................. 3(2) Adoption of Specific Accounting Methods for Preparation of the Quarterly Consolidated Financial Statements.. 3(3) Changes in Accounting Policies, Accounting Estimates and Restatement of Revisions......................................... 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
In the first quarter, the three-month period from April 1, 2013 to June 30, 2013, of fiscal 2014, the fiscal year ending
March 31, 2014, the Japanese economy exhibited signs of a modest economic recovery. Amid expectations toward thegovernment’s economic policies, large-scale monetary easing measures by the Bank of Japan, and other factors, trends
in personal consumption were firm with indications of an improvement in the earnings of mainly exporting companies
within the corporate sector.
In the housing sector, new housing starts continued to rally. This was largely attributable to the prolonged low
level of housing loan interest rates and market trends prior to the planned increase in the consumption tax rate. Also,
decisions were made to expand relaxation measures to prevent drastic changes in demand. In addition to expanding
the system of personal income tax reduction applicable to housing loan users in line with loan balances, there werealso signs that a housing acquisition benefit system would be adopted as a support measure in the event that anincrease in the consumption tax rate was implemented.
Under these circumstances, Grandy House is working diligently to strengthen site procurement capabilities of a
housing land development department and to expand its sales and marketing areas while increasing its market share ineach area as a part of the medium-term target of further bolstering its core real estate sales business. In the period underreview, the Company strove to increase orders through such sales and promotional activities as the campaign tocommemorate achieving 1,000 orders received for the year in fiscal 2013. In addition, Chiba Grandy House (Kashiwa
City, Chiba Prefecture), a company charged with the responsibility overseeing business operations and expansion in
the Chiba Prefecture area, commenced operations from April.
As a result of these factors, consolidated net sales in the first quarter of fiscal 2014 were ¥9,097 million, up 11.7%
compared with the corresponding period of the previous fiscal year. Operating income was ¥759 million, up 14.4%,
ordinary income was ¥789 million, up 19.3%, and net income was ¥477 million, up 24.3% compared with thecorresponding period of the previous fiscal year.

Results by business segment are presented as follows.
Real Estate Sales
In new home sales, the Company worked hard to enhance its information collection capabilities by strengthening its
housing land development department that procures site and activities while endeavoring to secure prime land. Orders
received also progressed soundly for such projects as Utsunomiya Technopolis (covering 29 blocks in Utsunomiya
City, Tochigi Prefecture) and Moka Oyadai New Town (covering 47 blocks in Moka City, Tochigi Prefecture) for
which sales were newly commenced. In addition, the newly established Chiba Grandy House (Kashiwa City, Chiba
Prefecture) commenced operations taking steps to boost orders in the Chiba Prefecture area. As a result, the number of
new homes sold in the first quarter of fiscal 2014 was 277, up 39 homes compared with the corresponding period of
the previous fiscal year. In existing home sales, the number of homes available was limited making for a continued
harsh procurement environment. These and other factors impacted sales. As a result, the number of existing homes
sold in the first quarter of fiscal 2014 was 43, down 5 homes compared with the corresponding period of the previous
fiscal year.
As a result of the aforementioned factors, revenues in the real estate sales segment in the first quarter of fiscal 2014
were ¥8,437 million, up 10.7% compared with the corresponding period of the previous fiscal year. Segment profit
was ¥757 million, up 27.4% compared with the corresponding period of the previous fiscal year.

Construction Material Sales
In the construction materials sales segment, the procurement price of laminated lumber, a mainstay material, began toincrease from its low price range from the end of last year. Due to the substantial increase up to the first quarter offiscal 2014, the Company pursued negotiations regarding the revision of transaction prices with purchasers. At thesame time, the Company worked diligently to expand orders by engaging in such activities as the development ofbusiness in the southern area of the Tohoku region while endeavoring to gradually decrease production costs
attributable to the increase in production.
As a result of the aforementioned factors, revenues in the construction material sales segment in the first quarter offiscal 2014 were ¥595 million, up 38.9% compared with the corresponding period of the previous fiscal year. Due tothe increase in material costs and delays in passing on these increases to sales prices, segment profit was ¥30 million,
down 24.7% compared with the corresponding period of the previous fiscal year.

―2―Real Estate Leasing
In the real estate leasing business, there were no new acquisitions or sales of real estate for leasing comprising land andbuildings. Every effort was made to increase the revenues of existing real estate for leasing. However, revenues in thereal estate leasing segment in the first quarter of fiscal 2014 were ¥64 million, down 31.4% compared with thecorresponding period of the previous fiscal year. This largely reflected the transfer of real estate (¥28 million ofrevenues in the corresponding period of the previous fiscal year) temporarily used for leasing purposes in the previous
fiscal year to its originally planned use of site for sale (Moka Oyadai New Town). Segment profit was ¥34 million,
down 44.6% compared with the corresponding period of the previous fiscal year. As a result, the Company recorded a
decline in revenues and earnings in the real estate leasing business.

(2) Explanation regarding Financial Position
Total assets stood at ¥31,271 million as of June 30, 2013, up ¥1,153 million compared with the end of the previous
fiscal year. The major factor was the increase in real estate for sale in process owing mainly to progress in theacquisition of real estate for sale.
Total liabilities stood at ¥18,913 million as of June 30, 2013, up ¥906 million compared with the end of theprevious fiscal year. The major factor was the increase in short-term loans payable as project funding owing mainly toprogress in the acquisition of real estate for sale.
Total net assets stood at ¥12,358 million as of June 30, 2013, up ¥247 million compared with the end of theprevious fiscal year. This movement reflected such factors as net income for the first quarter of fiscal 2014 of ¥477
million and the payment of dividends to shareholders.

(3) Explanation regarding Future Prospects Including Consolidated Financial Forecasts
There is no change to financial forecasts announced on May 7, 2013.
2. MATTERS CONCERNING SUMMARY INFORMATION (Notes)(1) Changes of Significant Subsidiaries during the Term
Not applicable.

(2) Adoption of Specific Accounting Methods for Preparation of the Quarterly Consolidated Financial Statements
Not applicable.

(3) Changes in Accounting Policies, Accounting Estimates and Restatement of Revisions
Not applicable.

―3―3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2013(As of March 31, 2013)

First Quarter of FY2014(As of June 30, 2013)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade

5,218,245
394,0825,469,850
473,366

Real estate for sale
Costs on uncompleted construction contracts

6,171,787
10,1595,710,191
14,762

Real estate for sale in process
Merchandise and finished goods

7,404,313
252,665

8,700,026
199,046

Raw materials and supplies
Deferred tax assets

113,328
124,336

133,278
91,103

Other
Allowance for doubtful accounts

256,258(2,788)357,848(3,489)19,942,389

21,145,984

Buildings and structures, net
Machinery, equipment and vehicles, net

3,339,538
4,543

3,304,553
4,121

Tools, furniture and fixtures, net
Land44,9895,915,880

43,134
5,915,880

154,738－

144,241294

9,459,690

9,412,225

64,06262,872

Investment securities
Long-term loans receivable

514,882
29,987514,888
28,509Deferred tax assets
Other86,29557,24585,19758,249Allowance for doubtful accounts(36,283)(36,081)

Total current assets
Noncurrent assets
Property, plant and equipment

Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets

Total investments and other assets
Total noncurrent assets
Total assets―4―652,127

650,764

10,175,880

10,125,862

30,118,269

31,271,847

(Thousands of Yen)FY2013(As of March 31, 2013)

First Quarter of FY2014(As of June 30, 2013)

Liabilities
Current liabilities
Accounts payable for construction contracts
Short-term loans payable

2,299,933
11,639,900

2,518,542
12,556,300

Current portion of long-term loans payable
Lease obligations

482,61249,630447,554
48,209

Income taxes payable
Provision for warranties for completed construction

579,31355,433

198,772
52,262

Other
Total current liabilities

644,494

925,488

15,751,317

16,747,129

1,828,171
123,134

1,729,888
112,042

221,276
17,241

238,502
23,104

Noncurrent liabilities
Long-term loans payable
Lease obligations
Provision for retirement benefits
Provision for directors’ retirement benefits
Other

66,49362,9882,256,316

2,166,525

18,007,633

18,913,654

Shareholders’ equity
Capital stock

2,077,500

2,077,500

Capital surplus
Retained earnings

2,205,165
8,179,785

2,205,165
8,427,341

Treasury stock(351,814)(351,814)

Total shareholders’ equity

12,110,636

12,358,192

Total noncurrent liabilities
Total liabilities
Net assets

Total net assets
Total liabilities and net assets―5―

12,110,636

12,358,192

30,118,269

31,271,847

(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of Yen)
Three months ended June 30,

Three months ended June 30,

2012 (From April 1, 2012
to June 30, 2012)2013 (From April 1, 2013
to June 30, 2013)

Net sales
Cost of sales

8,142,595
6,588,742

9,097,354
7,364,033

Gross profit

1,553,852

1,733,320

Selling, general and administrative expenses

889,471

973,487

Operating income

664,381759,833

－
133

151
138

Operations consignment fee
Office work fee

36,777
32,83647,877
37,849Other

11,5605,961

Total non-operating income

81,30891,97852,16932,19862,757－

Non-operating income
Interest income
Dividends income

Non-operating expenses
Interest expenses
Commission for syndicate loan
Total non-operating expenses

84,36762,757

661,323

789,054

8,692

3,346

Total extraordinary loss

8,692

3,346

Net income before income taxes

652,630

785,708

Income taxes-current

224,191

273,605

Income taxes-deferred

44,16334,330Total income taxes

268,355

307,936

Ordinary income
Extraordinary loss
Loss on retirement of noncurrent assets

Income before minority interests

384,274

477,772

Net income

384,274

477,772―6―

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Three months ended June 30,
2012 (From April 1, 2012

Three months ended June 30,
2013 (From April 1, 2013

to June 30, 2012)

to June 30, 2013)

Income before minority interests

384,274

477,772

Comprehensive income

384,274

477,772

Comprehensive income attributable to:Comprehensive income attributable to owners of the parent

384,274

477,772－－

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 first quarter of the fiscal year ended March 31, 2013 (April 1, 2012 to June 30, 2012)
1. Information relating to the amounts of net sales, profit and loss by reportable segment(Thousands of Yen)
Reportable Segment
Adjustments(Note 1)

AmountRecorded on
Consolidated
Statements ofIncome(Note 2)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Net sales
Sales to outside customers
Intersegment sales and transfers

7,620,167－

428,587
540,50293,84014,8408,142,595
555,342－(555,342)

8,142,595－

Total

7,620,167

969,090108,6818,697,938(555,342)

8,142,595

594,790

41,15662,351

698,297(36,974)

661,323

Segment profit

Total

Notes: 1. Adjustments of segment profit (¥-36,974 thousand) are eliminations of intersegment transactions.
2. Segment income has been adjusted to ordinary income described in quarterly consolidated statements of income.

2. Impairment loss of noncurrent assets and goodwill by reportable segment
Not applicable.
II. The first quarter of the fiscal year ending March 31, 2014 (April 1, 2013 to June 30, 2013)
1. Information relating to the amounts of net sales, profit and loss by reportable segment(Thousands of Yen)
Reportable Segment
Adjustments(Note 1)

AmountRecorded on
Consolidated
Statements ofIncome(Note 2)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Net sales
Sales to outside customers
Intersegment sales and transfers

8,437,474－

595,503
734,583

64,376
19,894

9,097,354
754,478－(754,478)

9,097,354－

Total

8,437,474

1,330,086

84,271

9,851,832(754,478)

9,097,354

757,669

30,97934,544

823,194(34,139)

789,054

Segment profit

Total

Notes: 1. Adjustments of segment profit (¥-34,139 thousand) are eliminations of intersegment transactions.
2. Segment income has been adjusted to ordinary income described in quarterly consolidated statements of income.

2. Impairment loss of noncurrent assets and goodwill by reportable segment
Not applicable.

―8―