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 2022 Ending March 31, 2022 (Japanese GAAP)
Company Name:Grandy House Corporation
Stock Exchange Listing:
Securities Code:
8999
URL:
Representative:
Yasuro Hayashi, President
Atsuo Saito, Vice President, General Administration Manager
Inquiries:
Scheduled date of quarterly securities report filing:
November 11, 2021
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
Yes
Quarterly results briefing held:
None

November 8, 2021
Tokyo Stock Exchange
https://www.grandy.co.jp
TEL: +81-28-650-7777(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, 2022
(April 1, 2021 to September 30, 2021)(1) Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Net Sales
Six months ended
September 30, 2021
Six months ended
September 30, 2020
Note: Comprehensive income

Operating Income

Net Income Attributableto Owners of the Parent

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

27,037

23.6

2,063

230.4

1,964

270.0

1,335

318.1

21,881

―

624

―

530

―

319

―

Six months ended September 30, 2021: ¥1,327 million (304.3%)
Six months ended September 30, 2020: ¥328 million (―%)(¥)

Net Income per Share(Diluted)
(¥)

45.56

45.16

10.99

―

Net Income per ShareSix months ended
September 30, 2021
Six months ended
September 30, 2020

Note: As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) and other standards havebeen applied since the beginning of the first quarter of the fiscal year ending March 2022, financial results related to the second quarter ofthe fiscal year ended March 31, 2021 reflect figures calculated after the retroactive application of such standards. Accordingly, percentagechanges representing the year-on-year increase (decrease) between the second quarter of the fiscal year ended March 31, 2021 and thesame period of the previous fiscal year are not stated.

(2) Consolidated Financial Position

September 30, 2021
March 31, 2021
Reference: Shareholders' equity

Total Assets(¥ million)
57,62558,070
September 30, 2021:
March 31, 2021:

Net Assets(¥ million)
23,864
23,160¥23,732 million¥23,007 million

Shareholders' Equity Ratio
%
41.2
39.6

Net Assets per Share(¥)
805.49786.57

Note: Figures related to the fiscal year ended March 31, 2021 reflect those calculated after the retroactive application of the "AccountingStandard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) and other standards.

2. Dividends
1Q-EndFiscal 2021
Fiscal 2022
Fiscal 2022 (Forecast)

2Q-End(¥)――

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

Period-End

Total

(¥)
24.00

(¥)
24.00

24.00

24.00

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

3. Consolidated Financial Forecasts for Fiscal 2022 (April 1, 2021 to March 31, 2022)(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 Year
52,400
11.1
3,200
39.2
3,000
43.1
2,000
15.9
68.37
Note: Revisions to the most recently announced financial forecasts in the current quarter: None
As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) and other standards have been
applied since the beginning of the fiscal year ending March 2022, percentage changes representing the year-on-year increase (decrease) show
comparisons with figures for the fiscal year ended March 2021 calculated after the retroactive application of such standards.

* Notes(1) Significant changes to subsidiaries during the period(Transfers of specific subsidiaries with 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.: Yes
2) Changes in accounting policies other than 1):
None3) Changes in accounting estimates:
None4) Restatements:
None
Note: For details, please refer to "(4) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" in "2.
QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES" on page 10 of the Attachment Materials.

(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, 2021

30,823,200 shares

March 31, 2021

30,823,200 shares

September 30, 2021
Six months ended
September 30, 2021

1,359,445 shares

March 31, 2021
Six months ended
September 30, 2020

1,572,645 shares

29,311,469 shares

29,070,755 shares*This consolidated quarterly financial report is not subject to auditing 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(Changes in Accounting Policies) ....................................................................................................................10(Additional Information) ..................................................................................................................................10(Segment Information) .....................................................................................................................................11- 1 -1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS
As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) andother standards have been applied since the beginning of the first quarter of the fiscal year ending March 2022, thecomparative analysis with the cumulative second quarter of the previous consolidated fiscal year, the second quarterof the previous consolidated fiscal year and the full previous consolidated fiscal year in "Explanation regarding
Operating Results" and "Explanation regarding Financial Position" for the cumulative second quarter of consolidated
fiscal 2022 under review is based on figures calculated after the retroactive application of such standards.
(1) Explanation regarding Operating Results
In the cumulative first six months of the consolidated fiscal year under review, the Japanese economy saw therise of concerns over the further impact on consumer spending and corporate economic activities as the number of
COVID-19 infections hit a record high in August, and the coverage of a state of emergency and COVID-19 semiemergency measures spread nationwide.
In the housing section, although the number of new housing starts has been put on a moderate recovery path
toward the pre-pandemic level mainly due to increased customer interest in detached houses and support measurestaken to promote home acquisition, the market prices of wood materials remain high due to the so-called "woodshock," and there is concern over the tight supply of housing equipment, etc. mainly due to the spread of infections
overseas, leaving the business outlook uncertain.
Under these circumstances, the Grandy House Group has continued to make efforts to build and expand its
business foundation in line with changes in the corporate management environment through various initiatives,
including reinforcement of purchases and production systems, in response to a rise in housing demand while
implementing thorough infection control measures with top priority on ensuring the safety of customers and thehealth of employees.
With regard to new home sales, one of our core operations, we focused on purchases and sales promotion withthe aim of expanding our sales area in each of Saitama Prefecture and Kanagawa Prefecture, which were the focal
areas in business expansion, and started selling new homes in a large-scale housing project that was based on a newconcept in Ibaraki Prefecture. In existing home sales, we endeavored to expand and reinforce our product inventory
by doubling down on purchases to secure an increase in the number of homes sold.
Through these efforts, both the number of homes sold and the net sales for new homes and existing homes
increased in comparison with the same period of the previous fiscal year, which had been significantly affected by
the impact of the sluggish economic activity caused by the COVID-19 outbreak. Accordingly, profits recovered
significantly, too.
As a result of these initiatives, the Grandy House Group's consolidated cumulative operating results for thesecond quarter of Fiscal 2022 under review were as follows: Net sales were ¥27,037 million, an increase of 23.6%
year-on-year; operating income rose to ¥2,063 million, an increase of 230.4% year-on-year; ordinary income was¥1,964 million, an increase of 270.0% year-on-year; and net income attributable to owners of the parent totaled¥1,335 million, an increase of 318.1% 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 expanded andstrengthened our non-contact sales activities to make better use of IT. In Saitama Prefecture, we opened a new branchin Fujimi City, Saitama Prefecture in April 2021 to expand our sales area and strengthen our sales structure. In parallel,
we strove to enhance the brand recognition of Grandy House through an initiative to start broadcasting new CM. In
Kanagawa Prefecture, we have increased our personnel to expand our business and made efforts to reinforce the inhouse construction of homes and its management structure.
In terms of products, we have continued to differentiate ourselves from our competitors by developing high addedvalue products, such as proposals for new homes that accommodate new lifestyles and creating a safe and secure
townscape that pays special attention to child-rearing generations in response to changes in demand for the housing
environment caused by the pandemic. Furthermore, in the "Sora Town Tsukuba Matsushiro," a strategic large-scale
housing project (with a total of 96 lots, Tsukuba City, Ibaraki Prefecture), which was put on market in September 2021,
all new homes employ the zero-net-energy house system (ZEH), which features eco-friendly building design that- 2 -utilizes natural ventilation and natural light. This is an example of new efforts that the Group has made to offer asustainable lifestyle.
Thanks to these efforts, the number of new homes sold in the consolidated cumulative second quarter of the fiscal
2022 under review was 756, the highest for a six month period (an increase of 114 homes year-on-year).
In existing-home sales, we have continued our efforts to expand the number of homes sold by enhancing productinventory. Despite the persistent impact of the COVID-19 pandemic, the number of homes sold for the consolidated
cumulative second quarter of fiscal 2022 under review was 75 (an increase of 8 homes year-on-year). This was achieved
mainly by the expansion and reinforcement of online advertising, increased coordination with brokers and a focus onpurchases through auctions, thereby building up both purchases and sales.
As a result, sales in the real estate sales segment in the consolidated cumulative second quarter of fiscal 2022 underreview increased by 23.9% year-on-year to ¥25,302 million. We had a segment profit of ¥1,700 million, an increase of
347.5% year-on-year.
b. Construction Material Sales
In the construction material sales, while the number of new housing starts for wooden houses has been on an
upward trend since April primarily due to a rise in demand for detached homes, the futures market in the US, which
had triggered the "wood shock," i.e., a surge in wood material prices, slumped to a third of its peak in early August,and imports recovered gradually, resulting in a tight supply-demand situation easing in both imported and domestic
wood materials. Nonetheless, the domestic prices of wooden materials remain high.
Under these circumstances, we have focused on measures aimed at adjusting our purchases and sales prices andmaintaining our purchase volume, thereby increasing both net sales and profits year-on-year.
As a result of these factors, sales in the construction material sales segment in the consolidated cumulative second
quarter of fiscal 2022 under review increased by 20.6% year-on-year to ¥1,598 million. We had a segment profit of¥174 million, an increase of 184.7% year-on-year.
c. Real Estate Leasing
In the real estate leasing, more stores were opened in or relocated to the city center in the office building market in
and around Utsunomiya City, which is our main market, leading to a recovery trend in the vacancy rate. In the parking
market, the Grandy House Group continues to face a difficult situation although the operation rate in parking lots has
started to recover.
Under these circumstances, the Group endeavored to improve the operation rate of existing assets and reducemanagement costs. As a result, sales in the real estate leasing segment in the consolidated cumulative second quarterof fiscal 2022 under review were ¥136 million, an increase of 3.7% year-on-year. We had a segment profit of ¥63
million, a decrease of 20.1% year-on-year, mainly due to the occurrence of expenses for renovating properties forleasing despite the sales increase brought about by the lesser impact of rent reductions and exemptions for tenants,
which were carried out in the previous fiscal year, and an increase in new assets for leasing.
(2) Explanation regarding Financial Position
a. Balance Sheet
As of the end of the second quarter of consolidated fiscal 2022 under review, consolidated total assets fell to¥57,625 million, a decrease of ¥445 million compared to the end of the previous consolidated fiscal year. This wasprimarily due to a decrease in cash and deposits mainly thanks to loan repayments, although there was an increase ininventories due to various factors, such as the acquisition of housing lots to reflect the expanded area of the real estate
sales business.
Liabilities stood at ¥33,760 million, a decrease of ¥1,149 million compared to the end of the previous consolidated
fiscal year. This was mainly due to loan repayments.
Total net assets stood at ¥23,864 million as of September 30, 2021. This represents an increase of ¥703 million
from the balance recorded as of March 31, 2021. This was due to acquiring net income attributable to owners of theparent despite the payment of dividends.

- 3 -b. Cash Flows
Cash and cash equivalents (hereinafter, "cash flows") as of the end of the second quarter of consolidated fiscal
2022 under review decreased by ¥1,761 million compared to the end of the previous consolidated fiscal year to ¥11,587
million as a result of increased cash flows from operating activities and decreased cash flows from investing andfinancing activities.
The Company’s cash flows and their factors that cause them to fluctuate during the six months ended September
30, 2021, are as follows.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥791 million (an increase of ¥612 million for the six months
ended September 30, 2020). This was mainly due to an increase in net income before income taxes despite an increase
in inventory resulting from the acquisition of housing lots and others.
(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to ¥247 million (a decrease of ¥229 million for the six months
ended September 30, 2020). This was mainly due to the construction of branch buildings, the acquisition of assets forleasing, and other items.
(Cash Flows from Financing Activities)
Net cash used in financing activities amounted to ¥2,306 million (an increase of ¥2,418 million for the six
months ended September 30, 2020). This was mainly due to payments of dividends and repayments of loans payable.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There have been no changes to the consolidated financial forecasts announced on August 4, 2021.

- 4 -2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2021(As of March 31, 2021)

Second Quarter of FY2022(As of September 30, 2021)

13,363,516

11,601,685

Notes and accounts receivable – trade and contract assets

496,993

764,812Securities

201,921200,768

7,451,307

7,444,392

7,725

11,090Real estate for sale in process

22,584,961

23,374,320

Merchandise and finished goods

237,434

314,615

Raw materials and supplies

114,678

216,002

Other

920,828

958,500

Allowance for doubtful accounts(2,362)(4,268)45,377,005

44,881,920

3,306,457

3,261,947

Machinery, equipment and vehicles, net

29,12428,468Tools, furniture and fixtures, net

50,85150,353

AssetsCurrent assets
Cash and deposits

Real estate for sale
Costs on uncompleted construction contracts

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

Land

6,021,604

6,061,045

Leased assets, net

74,39069,577

Construction in progress

150,319

323,223

9,632,747

9,794,616

1,165,571

1,097,008

Total property, plant and equipment
Intangible assets
Goodwill
Other67,19260,432

1,232,763

1,157,441

Investment securities

145,500

138,000

Long-term loans receivable

18,993

16,809Deferred tax assets

562,494

531,590

Total intangible assets
Investments and other assets

Other

1,067,323

1,063,725

Allowance for doubtful accounts(4,272)―

Total investments and other assets

1,790,038

1,750,124

12,655,549

12,702,181

Bond issuance costs

38,02540,919Total deferred assets

38,02540,91958,070,579

57,625,021

Total non-current assets
Deferred assets

Total assets- 5 -(Thousands of Yen)FY2021(As of March 31, 2021)

Second Quarter of FY2022(As of September 30, 2021)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,255,232

3,722,692

Short-term loans payable

20,696,600

15,977,200

Current portion of bonds
Current portion of long-term loans payable

21,00013,5001,014,044

1,413,824

Lease obligations

30,98027,792

Income taxes payable

399,719477,869

Provision for warranties for completed construction

185,503

182,244955,601

770,191

26,558,680

22,585,314

Bonds payable

2,303,000

2,800,000

Long-term loans payable

4,904,321

7,141,629

Lease obligations

50,55948,699Provision for directors' retirement benefits

218,520

235,045

Net defined benefit liability

810,289

871,169

Other
Total current liabilities
Non-current liabilities

Other
Total non-current liabilities
Total liabilities

64,878

79,1138,351,569

11,175,657

34,910,250

33,760,971

2,077,500

2,077,500

Net assets
Shareholders' equity
Capital stock
Capital surplus

2,343,929

2,406,397

Retained earnings

18,836,131

19,469,533

Treasury shares(270,372)(233,701)

22,987,189

23,719,729

Valuation difference on available-for-sale securities

20,50013,000Total accumulated other comprehensive income

20,50013,000Total shareholders' equity
Accumulated other comprehensive income

Subscription rights to shares
Total net assets
Total liabilities and net assets- 6 -152,640

131,320

23,160,329

23,864,049

58,070,579

57,625,021

(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, 2020
(From April 1, 2020 to
September 30, 2020)

Six months ended
September 30, 2021
(From April 1, 2021 toSeptember 30, 2021)

Net sales

21,881,404

27,037,381

Cost of sales

18,297,641

21,774,768

Gross profit

3,583,763

5,262,612

Selling, general and administrative expenses

2,959,008

3,198,651

624,754

2,063,960

914

516

Operating income
Non-operating income
Interest income
Dividends income

2,903

2,861

Office work fee

13,584

16,415

Other

46,087

12,895

Total non-operating income

63,49032,688145,239

118,875

Commission for syndicate loan

4,983

5,920

Other

7,112

7,395

157,335

132,191

530,909

1,964,457

Gain on sales of non-current assets

3,802

18,620Total extraordinary income

3,802

18,620Loss on retirement of non-current assets

7,979

6,317

Loss on cancellation of lease contracts

913

358

Total extraordinary loss

8,893

6,675

Net income before income taxes

525,817

1,976,402

Income taxes – current

228,005

610,081

Income taxes – deferred(21,625)

30,904

Total income taxes

206,379

640,986

Net income

319,437

1,335,415

Net income attributable to owners of the parent

319,437

1,335,415

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss

- 7 -(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative second quarter)(Thousands of Yen)
Six months ended
September 30, 2020
(From April 1, 2020 to
September 30, 2020)

Six months ended
September 30, 2021
(From April 1, 2021 toSeptember 30, 2021)

319,437

1,335,415

Valuation difference on available-for-sale securities

9,000(7,500)Total other comprehensive income

9,000(7,500)328,437

1,327,915

328,437

1,327,915――

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
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
Payments for guarantee deposits
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
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, 2020
(From April 1, 2020 to
September 30, 2020)

Six months ended
September 30, 2021
(From April 1, 2021 toSeptember 30, 2021)

525,817
142,665
68,563

1,976,402
139,592
68,563(1,458)

16,525

10,420(3,258)(5,985)58,092(3,818)145,239(3,802)
7,979
101,566(514,751)
152,450
564,634
1,247,613
4,925(148,151)(492,117)
612,270(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(196,290)
4,210(29,209)15,823(22,000)(2,308)(229,774)(331,148)
101,555(6,330)2,184(300)(13,509)(247,548)

1,487,100
1,480,000(351,100)
500,000(10,500)(4,719,400)
3,280,000(714,912)
500,000(10,500)―

77,818(667,761)(19,089)
2,418,649
2,801,145
10,336,889
13,138,034(700,674)(18,545)(2,306,213)(1,761,830)
13,349,007
11,587,176

(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.
(Changes in Accounting Policies)(Application of Accounting Standard and Other Standards for Revenue Recognition)
The Grandy House Group has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement
No. 29, issued on March 31, 2020; hereinafter, "Revenue Recognition Accounting Standard") and other standards
since the beginning of the first quarter of the fiscal year ending March 2022. Accordingly, we have decided torecognize revenue of the amount that we expect to receive in exchange for promised goods or services upon thetransfer of control over such promised goods or services to the customer. With this change of accounting policies
being applied retroactively in principle, the quarters of the previous fiscal year and the previous consolidated
fiscal year are presented in the quarterly consolidated financial statements and the consolidated financial
statements after the relevant retroactive application.
As a result, compared to the figures calculated prior to the retroactive application of such policies, net sales forthe cumulative second quarter of the previous consolidated fiscal year increased by ¥61,000 thousand, cost of
sales decreased by ¥102,562 thousand, selling, general and administrative expenses increased by ¥5,625
thousand, operating income increased by ¥157,937 thousand, and ordinary income and quarterly net income
before income taxes decreased by ¥5,625 thousand, respectively. Furthermore, retained earnings at the beginningof the previous consolidated fiscal year decreased by ¥125,241 thousand since the cumulative financial impact
was reflected in net assets at the beginning of the previous consolidated fiscal year.
Due to the application of the Revenue Recognition Accounting Standard and other standards, "Notes andaccounts receivable – trade," which was presented under "Current assets" in the consolidated balance sheet forthe previous fiscal year, have been included and presented under "Notes and accounts receivable – trade andcontract assets" since the first quarter of fiscal year ending March 2022.
(Additional Information)(Changes in Presentation Methods)(Quarterly Consolidated Balance Sheets)
Housing lots for built-for-sale homes that had yet to be completed were included under "Real estate for sale" inthe previous consolidated fiscal year, but they have been included and presented under "Real estate for sale inprocess" since the first quarter of fiscal year ending March 2022 to enhance the clarity of the consolidatedbalance sheet. To reflect this change in our presentation methods, a reclassification of accounts has been
conducted for the consolidated balance sheet of the previous consolidated fiscal year.
As a result, the ¥9,675,070 thousand that was presented under "Real estate for sale" in the consolidated balance
sheet of the previous consolidated fiscal year has been reclassified into "Real estate for sale in process."(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 2021.

- 10 -

(Segment Information)
I. The cumulative six months ended September 30, 2020 (April 1, 2020 to September 30, 2020)
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 outside
20,424,301
1,325,227
131,875
21,881,404―
customers
Inter-segment sales or
27,8401,255,380
40,223
1,323,444(1,323,444)
transfers
Total
20,452,141
2,580,608
172,098
23,204,848(1,323,444)
Segment profit
379,929
61,34579,506
520,781
10,127
Notes: 1 The adjustments of segment profit (¥10,127 thousand) is the eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

21,881,404―
21,881,404
530,909

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, 2021 (April 1, 2021 to September 30, 2021)
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 outside
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) is 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.
3. Information concerning changes by reportable segment
As described in "(Changes in Accounting Policies)," the "Accounting Standard for Revenue
Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) and other standards have been applied
since the beginning of the first quarter of the fiscal year ending March 2022, and the accounting method
concerning revenue recognition has been changed. Accordingly, the method used to measure income inbusiness segments has also been changed.
Segment information for the cumulative second quarter of the previous consolidated fiscal year is createdwith the above-stated method.

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