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 Second Quarter of Fiscal 2023 Ending March 31, 2023 (Japanese GAAP)
November 7, 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, Corporate
Inquiries:
TEL: +81-28-650-7777
Administrative Division
Scheduled date of quarterly securities report filing:
November 10, 2022
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
Yes
Quarterly results briefing held:
Yes (for analysts)
Company Name:
Securities Code:
Representative:(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, 2023
(April 1, 2022 to September 30, 2022)(1) Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Net Sales
Six months ended
September 30, 2022
Six months ended
September 30, 2021
Note: Comprehensive income

Operating Income

Net Income Attributableto Owners of the Parent

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

27,632

2.2

1,882

(8.8)

1,785

(9.1)

1,245

(6.7)

27,037

23.6

2,063

230.4

1,964

270.0

1,335

318.1

Six months ended September 30, 2022: ¥1,258 million (−5.2%)
Six months ended September 30, 2021: ¥1,327 million (304.3%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Six months ended
September 30, 2022
Six months ended
September 30, 2021

42.93

42.66

45.56

45.16

(2) Consolidated Financial Position

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

Total Assets(¥ million)
62,43460,901
September 30, 2022:
March 31, 2022:

Net Assets(¥ million)
25,133
24,660¥25,074 million¥24,592 million

Shareholders' Equity Ratio
%
40.2
40.4

Net Assets per Share(¥)
860.55850.82

2. Dividends
1Q-EndFiscal 2022
Fiscal 2023
Fiscal 2023 (Forecast)

2Q-End(¥)――

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

Period-End

Total

(¥)
30.00

(¥)
30.00

32.00

32.00

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

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 restatements
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
3) Average number of shares during the period

September 30, 2022

30,823,200 shares

March 31, 2022

30,823,200 shares

September 30, 2022

1,684,845 shares

March 31, 2022

1,918,845 shares

Six months ended
September 30, 2022

29,010,726 shares

Six months ended
September 30, 2021

29,311,469 shares

Note: The number of treasury shares at the end of the fiscal year includes shares held by "Grandy House Employee Stock
Holding Partnership Exclusive Trust Account" (1,032,000 shares on September 30, 2022, 1,194,000 shares on
March 31, 2022). In addition, shares held by "Grandy House Employee Stock Holding Partnership Exclusive Trust
Account" are included in the treasury shares that are deducted from the calculation of the average number of shares
during the period is calculated. The number of shares excluded from the average number of shares during the sixmonth periods ended September 30, 2022 and September 30, 2021 were 1,118,914 shares and – shares,
respectively.
*

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 ....................................... 4
2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ................................................. 5(1) Quarterly Consolidated Balance Sheets ............................................................................................................. 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ..................................................... 7(Quarterly Consolidated Statements of Income)(Consolidated cumulative second quarter) ..................................................................................................7(Quarterly Consolidated Statements of Comprehensive Income)(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(Additional Information) ..................................................................................................................................10(Segment Information) .....................................................................................................................................11- 1 -1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
In the cumulative six month period ended September 30, 2022, the Japanese economy continued to recoverslowly from the impact of COVID-19 infections, and social and economic activities were returning to normal. On
the other hand, the outlook remained uncertain due to concerns over price rises and other issues caused primarily
by the depreciation of the Japanese yen due to the policy of monetary tightening in global financial markets, andconstraints on the supply side resulting from rising political and military tensions.
In the housing sector, the number of new housing (detached houses for sale) starts continued to be favorable
and marked a year-on-year increase for 17 consecutive months until this September mainly due to changes incustomer needs relating to housing and lifestyles under the pandemic (COVID-19) crisis and governmental
policies taken to promote home acquisition as well as an ongoing low-interest rate financial policy. However, thepace of growth slowed down and we need to pay attention to the possible decline of customer motivation topurchase houses due to higher selling prices.
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). Accordingly, the Group has madeefforts to further improve its corporate value and expand its businesses.
As a result of these initiatives, consolidated cumulative operating results for the second quarter of Fiscal 2023
were as follows: net sales were ¥27,632 million, an increase of 2.2% year-on-year; operating income was ¥1,882
million, a decrease of 8.8% year-on-year; ordinary income was ¥1,785 million, a decrease of 9.1% year-on-year;
and net income attributable to owners of the parent totaled ¥1,245 million, a decrease of 6.7% year-on-year.
Operating results by business segment were as follows.
a. Real Estate Sales
In the real estate sales, we have continued to implement thorough infection prevention measures and focus on
non-contact sales activities with the safety and security of customers and employees given top priority.
In new home sales, we aim to expand the business area in the Tokyo metropolitan area (Saitama, Chiba andKanagawa) and increase our market share in northern Kanto (Tochigi, Ibaraki and Gunma). We engaged in running
TV commercials through key television broadcasting stations in the Kanto region, renovating our corporate website
and improving its functions in order to strengthen the awareness of our brand and power to attract customers.
In addition, we made efforts to expand the business area "from dots to planes." Specifically, in the Chiba
Prefecture area, we expanded our business from the Tokatsu area, (the cities of Kashiwa, Matsudo, Nagareyama
and Abiko), to the Keiyo area (the cities of Funabashi, Narashino and Ichikawa). In the Saitama Prefecture area,
we expanded our territory from Fujimino-city, where one of our branches is located, to the surrounding areas,
including the Tokyo area.
In the product side, with the involvement of Yamamoto Hori Architects, which has a wealth of knowledge andexperience, we started selling homes at the "—Omomuki (quaint)—Kawagoe" project (a total of 20 lots), in the cityof Kawagoe, a quaint town that had inherited the memories of olden days, and the "Higashimine Terrace" project(a total of 87 lots), for which the concept is sustainable housing and town, in the area east of Utsunomiya Railway
Station, where redevelopment was underway in the city of Utsunomiya (Tochigi Prefecture). Additionally, in thecity of Tsukuba (Ibaraki Prefecture), "Sora Town Tsukuba Matsushiro" (a total of 96 lots), an ongoing project inwhich all houses employed a net-zero-energy house system (ZEH), was acclaimed for its environmentally friendly
houses that contribute to a decarbonized society, and recorded favorable sales.
Thanks to these efforts, the sales price per home rose in the consolidated cumulative second quarter of fiscal
2023. However, the number of new homes sold was 718 as a whole (a decrease of 38 homes year-on-year) due tothe number of new homes sold struggling to grow in the Northern Kanto area.
In existing home sales, sales and purchase prices were on an upward trend as the price of new homes (detachedhomes and condominiums) kept increasing mainly due to the rising price of housing-related materials. Thus, thedemand for existing homes increased because their selling prices are lower than for new housing, especially in themetropolitan area. Under these circumstances, in order to expand and reinforce product inventory, we strove to- 2 -secure valuable properties by closely scrutinizing those that were up for auction before the bidding commenced
while we enhanced our cooperative relationships with brokers. As a result, in the consolidated cumulative second
quarter of fiscal 2023, profit grew mainly due to improvement in the profit ratio. However, the number of homes
sold was 66, a decrease of nine homes year-on-year, due to intense competition for inventory purchasing.
As a result, sales in the real estate sales segment in the consolidated cumulative second quarter of fiscal 2023
increased by 0.5% year-on-year to ¥25,431 million. We had a segment profit of ¥1,480 million, a decrease of 12.9%
year-on-year.
b. Construction Material Sales
The number of new housing starts for wooden houses stayed firm although that number fell year-on-year for
six consecutive months up to this September, compared to the previous year when higher demand was observed
during the recovery phase from the coronavirus crisis. On the other hand, although tightness disappeared in the
supply-demand situation of wood due to a slowdown in housing demand in the US, the price of wood remained
high. Under these circumstances, we strove to reinforce not only the supply chain but also our salesforce to secure
excellent customers with whom we can trade at fair selling prices. As a result, sales and profit increased year-onyear. Sales of the construction material sales segment in the consolidated cumulative second quarter of fiscal 2023
increased by 28.5% year-on-year to ¥2,054 million with a segment profit of ¥232 million, an increase of 33.2%
year-on-year.
c. Real Estate Leasing
In the office leasing market in the Utsunomiya area, the occupancy ratio of middle or larger sized properties
stayed low for a longer period whereas the occupancy rate of small properties (around 100 square meters) tended
to recover due to the trend of relocating to smaller office spaces. In the parking market, the operational rate of payby-the-hour parking lots remained on a recovery trend due to the revitalization of social and economic activities.
Under these circumstances, operating results in the consolidated cumulative second quarter of fiscal 2023
showed year-on-year increases in both sales and profit due to lower office vacancies, lower renovation expenditurethan the previous year and a recovery in operation rates at pay-by-the-hour parking lots in busy areas where demand
had been recovered slowly. As a result, sales were ¥146 million, an increase of 7.4% year-on-year, and segment
profit was ¥90 million, an increase of 42.8% year-on-year.
(2) Explanation regarding Financial Position
a. Balance Sheet
As of the end of the second quarter of consolidated fiscal 2023, consolidated total assets stood at ¥62,434
million, an increase of ¥1,532 million compared to the end of the previous consolidated fiscal year. This wasprimarily due to an increase in inventories in real estate sales segment, which had expanded its business areas.
Liabilities stood at ¥37,301 million, an increase of ¥1,059 million compared to the end of the previous
consolidated fiscal year. This was mainly due to an increase in loans payable for the acquisition of housing lots in
the real estate sales segment.
Total net assets stood at ¥25,133 million. This represents an increase of ¥473 million from the balance as ofMarch 31, 2022. This was due to acquiring net income attributable to owners of the parent despite the payment ofdividends.
b. Cash Flows
Cash and cash equivalents (hereinafter "cash") as of the end of the second quarter of consolidated fiscal 2023
was ¥10,167 million, a decrease of ¥915 million from the end of the previous fiscal year, as a result of decreases incash flows from operating activities and investing activities and an increase in cash flows from financing activities.
The Company's cash flows during the six months ended September 30, 2022, are as follows:(Cash Flows from Operating Activities)
Net cash used in operating activities amounted to ¥1,697 million (net cash provided by operating activities forthe six months ended September 30, 2021 was ¥791 million). This was mainly due to an increase in inventories
resulting from the acquisition of housing lots despite earning net income before income taxes.

- 3 -(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to ¥154 million (net cash used in investing activities for the six
months ended September 30, 2021 was ¥247 million). This was mainly due to the acquisition of leasing
properties, land for branch parking lots.
(Cash Flows from Financing Activities)
Net cash provided by financing activities amounted to ¥935 million (net cash used in financing activities forthe six month ended September 30, 2021 was ¥2,306 million). This was mainly due to an increase in loans
payable associated with an increase in inventories, despite the payment of dividends.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There have been no changes from the consolidated financial forecasts announced on May 9, 2022.

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

Second Quarter of Fiscal 2023
(As of September 30, 2022)

11,098,044

10,182,503

702,666

727,454

8,129,757

9,126,715

7,246

23,489Real estate for sale in process

26,090,400

27,232,010

Merchandise and finished goods

350,922445,821

AssetsCurrent assets
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

222,247

1,100,457

1,402,080(4,398)(57)

47,754,848

49,362,265

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

3,784,259

3,730,167

Machinery, equipment and vehicles, net

26,75923,115Tools, furniture and fixtures, net

55,59360,935

6,063,224

6,053,811

92,41983,115Land
Leased assets, net
Construction in progress

19,064

137,863

10,041,319

10,089,008

1,028,445

959,882

51,284

66,875

1,079,729

1,026,757

Investment securities

143,000

156,000

Long-term loans receivable

14,601

9,689

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

Deferred tax assets

647,621580,158

Other

1,175,569

1,171,007

Total investments and other assets

1,980,792

1,916,855

13,101,841

13,032,622

Bond issuance costs

45,28640,043

Total deferred assets

45,28640,04360,901,976

62,434,931

Total non-current assets
Deferred assets

Total assets- 5 -(Thousands of Yen)
Fiscal 2022
(As of March 31, 2022)

Second Quarter of Fiscal 2023
(As of September 30, 2022)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,870,228

3,705,895

Short-term loans payable

13,082,700

12,770,800

Current portion of bonds

1,000,000

1,500,000

Current portion of long-term loans payable

2,604,311

3,329,780

Lease obligations

34,201

34,455

Income taxes payable

899,770473,066

Provision for warranties for completed construction

185,469

181,903

Other

1,105,187

936,845

Total current liabilities

22,781,868

22,932,746

Bonds payable

2,300,000

2,100,000

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

10,880,167

Lease obligations

67,64757,022

Provision for directors' retirement benefits

251,695

243,262

Net defined benefit liability

904,811

953,633

Other

115,459

134,782

13,459,893

14,368,868

36,241,762

37,301,614

Capital stock

2,077,500

2,077,500

Capital surplus

2,592,335

2,613,431

Retained earnings

20,718,007

21,060,576

Treasury shares(813,488)(707,630)

24,574,354

25,043,877

Valuation difference on available-for-sale securities

18,00031,000Total accumulated other comprehensive income

18,00031,00067,86058,44024,660,214

25,133,317

60,901,976

62,434,931

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- 6 -(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated cumulative second quarter)(Thousands of Yen)
Six months ended
September 30, 2021
(From April 1, 2021 toSeptember 30, 2021)

Six months ended
September 30, 2022
(From April 1, 2022 toSeptember 30, 2022)

Net sales

27,037,381

27,632,926

Cost of sales

21,774,768

22,512,810

Gross profit

5,262,612

5,120,116

Selling, general and administrative expenses

3,198,651

3,237,617

Operating income

2,063,960

1,882,498

516

84

Non-operating income
Interest income
Dividends income

2,861

2,861

Commission

16,41516,035

Other

12,895

26,136

Total non-operating income

32,68845,118118,875

124,005

Commission for syndicate loan

5,920

8,420

Other

7,395

9,995

132,191

142,4211,964,457

1,785,194

18,62084,432–

2,220

18,62086,652

6,317

5,287

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on cancellation of lease contracts
Total extraordinary loss
Net income before income taxes
Income taxes – current

358

–

6,675

5,287

1,976,402

1,866,560

610,081553,577

Income taxes – deferred

30,904

67,462

Total income taxes

640,986

621,040

Net income

1,335,415

1,245,519

Net income attributable to owners of the parent

1,335,415

1,245,519- 7 -(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative second quarter)(Thousands of Yen)
Six months ended
September 30, 2021
(From April 1, 2021 toSeptember 30, 2021)

Six months ended
September 30, 2022
(From April 1, 2022 toSeptember 30, 2022)

1,335,415

1,245,519

Valuation difference on available-for-sale securities(7,500)13,000Total other comprehensive income(7,500)13,0001,327,915

1,258,519

1,327,915

1,258,519––

Net income
Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests- 8 -(3) Quarterly Consolidated Statements of Cash Flows(Thousands of Yen)

Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Gain on reversal of share acquisition rights
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable – trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable – trade
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Collection of loans receivable
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from disposition of treasury shares due to exerciseof subscription rights to shares
Proceeds from sale of treasury shares
Cash dividends paid
Repayments of lease obligations
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period- 9 -Six months ended
September 30, 2021
(From April 1, 2021 toSeptember 30, 2021)

Six months ended
September 30, 2022
(From April 1, 2022 toSeptember 30, 2022)

1,976,402
139,592
68,563

1,866,560
139,046
68,563

16,525(8,433)(3,258)(3,566)(2,367)60,879(3,377)
118,875–(18,620)
6,317(263,554)(964,314)
467,459(161,345)
1,437,778
4,499(119,356)(530,989)
791,931(4,341)
48,822(2,946)124,005(2,220)(84,432)
5,287(24,787)(2,192,205)(164,333)(274,676)(509,657)
2,949(124,206)(1,066,320)(1,697,235)(331,148)
101,555(6,330)2,184(13,809)(247,548)(337,314)
203,845(22,323)
1,763
(109)
(154,137)(4,719,400)
3,280,000(714,912)
500,000(10,500)(311,900)
4,400,000(2,654,144)
300,000–

77,81826,280–(700,674)(18,545)(2,306,213)(1,761,830)
13,349,007
11,587,176

93,474(900,508)(17,368)
935,832(915,540)
11,083,535
10,167,994

(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.
(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 ¥595,464 thousand and 1,032,000 shares for the consolidated second quarter offiscal 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 second quarter of fiscal 2023 under review: ¥572,180 thousand- 10 -

(Segment Information)
I. The cumulative six months ended September 30, 2021 (April 1, 2021 to September 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)(Thousands of Yen)
Amount Recordedon Quarterly
Consolidated
Statements ofIncome (Note 2)

Net sales
Sales to external
25,302,141
1,598,449
136,790
27,037,381–
customers
Inter-segment sales or
25,0201,732,374
40,584
1,797,978(1,797,978)transfers
Total
25,327,161
3,330,823
177,374
28,835,359(1,797,978)
Segment profit
1,700,214
174,658
63,5601,938,433
26,023
Notes: 1 The adjustments of segment profit (¥26,023 thousand) are the eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

27,037,381–
27,037,381
1,964,457

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.
II. The cumulative six months ended September 30, 2022 (April 1, 2022 to September 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)(Thousands of Yen)
Amount Recordedon Quarterly
Consolidated
Statements ofIncome (Note 2)

Net sales
Sales to external
25,431,837
2,054,241
146,848
27,632,926–
customers
Inter-segment sales or
26,7602,421,847
40,8802,489,488(2,489,488)
transfers
Total
25,458,597
4,476,088
187,729
30,122,415(2,489,488)
Segment profit
1,480,451
232,649
90,7691,803,870(18,675)
Notes: 1 The adjustments of segment profit (¥−18,675 thousand) are the eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

27,632,926–
27,632,926
1,785,194

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

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