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 Fiscal 2024 (Fiscal Year Ended March 31, 2024 under Japanese GAAP)May 13, 2024
Company Name: Grandy House Corporation
Stock Exchange Listing:Tokyo Stock Exchange
Securities Code: 8999
URL:
https://www.grandy.co.jp
Representative:
Yasushi Sayama, President
Inquiries:
Ryuji Umeki, Executive Officer & Administration Manager
TEL: +81-28-650-7777
Scheduled date of the Ordinary General Meeting of Shareholders: June 27, 2024
Scheduled date of securities report filing:
June 27, 2024
Scheduled date of dividend payment commencement:
June 28, 2024
Preparation of annual supplementary explanatory materials:
Yes
Annual results briefing held:
Yes (for analysts)(Figures are rounded down to the nearest million yen unless otherwise stated.)

1. Consolidated Financial Results for Fiscal 2024 (April 1, 2023 to March 31, 2024)(1) Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Net Income Attributable to
Net Sales
Operating Income
Ordinary Income
Owners of the Parent(¥ million)%(¥ million)%(¥ million)%(¥ million)%
Fiscal 2024
51,521(6.7)
1,175(64.7)
877(71.7)
416(80.8)
Fiscal 2023
55,2050.6
3,329(17.2)
3,103(18.5)
2,168(16.1)
Note: Comprehensive income
Fiscal 2024: ¥496 million (-77.5%)
Fiscal 2023: ¥2,202 million (-14.7%)
Net Income per
Net Income per
Ordinary Income /Operating Income /Return on Equity
Share
Share (Diluted)
Total Assets
Net Sales
(¥)
(¥)
%
%
%
Fiscal 2024
14.54
14.49
1.6
1.2
2.3
Fiscal 2023
74.50
73.99
8.5
4.6
6.0
Reference: Equity in earnings of affiliates
Fiscal 2024: — (¥ million)
Fiscal 2023: — (¥ million)(2) Consolidated Financial Position
Total Assets
Net Assets(¥ million)(¥ million)
March 31, 2024
74,46825,053
March 31, 2023
72,64526,196
Reference: Shareholders' equity
Fiscal 2024: ¥25,047 million
Fiscal 2023: ¥26,158 million

Shareholders' Equity Ratio
%
33.6
36.0

Net Assets per Share

Cash Flows from
Financing Activities(¥ million)
2,041
10,075

Cash and Cash Equivalents
at the End of the Period(¥ million)
10,17910,825(¥)
883.02889.12(3) Consolidated Cash Flows

Fiscal 2024
Fiscal 2023

Cash Flows fromOperating Activities(¥ million)(2,223)(8,845)

Cash Flows from
Investing Activities(¥ million)(463)(1,488)

2. Dividends
Annual Dividend per Share

Total
Dividends

Payout Ratio(Consolidated)

Ratio of
Dividends to
Net Assets(Consolidated)
%
3.7
3.6

PeriodTotal
End
(¥)
(¥)
(¥)
(¥)
(¥)
(¥ million)%
Fiscal 2023
—
0.00
—
32.00
32.00
972
43.0
Fiscal 2024
—
0.00
—
32.00
32.00
930
220.1
Fiscal 2025 (Forecast)
—
0.00
—
32.00
32.00
151.9
Note: Total dividends include dividends (¥23 million for the fiscal year ended March 2024, ¥30 million for the fiscal year ended March 2023)
paid to shares in the Company held by "Grandy House Employee Stock Holding Partnership Exclusive Trust Account."
1Q-End2Q-End3Q-End

3. Consolidated Financial Forecasts for Fiscal 2025 (April 1, 2024 to March 31, 2025)

Net Sales

Full Fiscal Year(¥ million)
54,000Operating Income%
4.8(¥ million)
1,300

%
10.6

(Percentage figures show the year-on-year increase (decrease).)Net Income
Ordinary Income
Attributable to
Net Income per ShareOwners of the Parent(¥ million)%(¥ million)
%
(¥)
1,000
14.0
600
43.9
21.07

* 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) Changes in accounting policies, accounting estimates, and restatements
1) Changes in accounting policies due to revision to accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatements:(3) 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

March 31, 2024

30,823,200 shares

None
None
None
None

March 31, 2023

30,823,200 shares

March 31, 2024
2,457,745 shares March 31, 2023
1,402,345 shares
March 31, 2024
28,660,463 shares March 31, 2023
29,110,686 shares
Note: The number of treasury shares at the end of the fiscal year includes shares in the Company held by "Grandy House Employee Stock
Holding Partnership Exclusive Trust Account" (725,500 shares for the fiscal year ended March 2024, 959,300 shares for the fiscal year
ended March 2023). The shares of the Company held by "Grandy House Employee Stock Holding Partnership Exclusive Trust
Account" are included in treasury shares and deducted from the calculation of the average number of shares during the period (822,723
shares for the fiscal year ended March 2024, 1,058,931 shares for the fiscal year ended March 2023).

Reference: Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for Fiscal 2024 (April 1, 2023 to March 31, 2024)(1) Non-Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Fiscal 2024
Fiscal 2023

Net Sales(¥ million)
22,72826,678%(14.8)(0.9)

Net Income per Share
(¥)
30.69
69.28

Fiscal 2024
Fiscal 2023

Operating Income(¥ million)
%
(37)
—
1,297
(29.2)

Ordinary Income(¥ million)%929(59.9)
2,316(12.7)Net Income(¥ million)%879(56.4)
2,016(5.5)

Net Income per Share(Diluted)
(¥)
30.57
68.81

(2) Non-Consolidated Financial Position
Total Assets
Net Assets(¥ million)(¥ million)
March 31, 2024
49,79822,216
March 31, 2023
46,82822,895
Reference: Shareholders' equity Fiscal 2024: ¥22,209 million
Fiscal 2023: ¥22,858 million

Shareholders' Equity Ratio
%
44.6
48.8

Net Assets per Share(¥)
782.99776.94

2. Non-Consolidated Financial Forecasts for Fiscal 2025 (April 1, 2024 to March 31, 2025)(Percentage figures show the year-on-year increase (decrease).)Full Fiscal YearNet Sales(¥ million)
24,000%
5.6

Ordinary Income(¥ million)
%
1,200
29.1

Net Income(¥ million)
1,100

Net Income per Share
%
25.1

*

This consolidated 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
Disclaimer:

(¥)
38.62

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. Please refer to "1. OVERVIEW OFOPERATING RESULTS (4) Outlook for Fiscal 2025" on page 4 of the Attachment Materials for information regarding theunderlying assumptions for financial forecasts and an explanation concerning the appropriate use of forecasts and other notes.

Attachment Materials: Table of Contents
1. OVERVIEW OF OPERATING RESULTS ............................................................................................................. 2(1) Overview of Operating Results for Fiscal 2024 ................................................................................................. 2(2) Overview of Financial Position for Fiscal 2024 ................................................................................................. 3(3) Overview of Cash Flows for Fiscal 2024 ........................................................................................................... 3(4) Outlook for Fiscal 2025 ..................................................................................................................................... 4(5) Basic Policy concerning the Allocation of Profits and Dividends for Fiscal 2024 and Fiscal 2025................... 5
2. OVERVIEW OF THE CORPORATE GROUP ....................................................................................................... 6
3. BASIC APPROACH TO THE SELECTION OF ACCOUNTING STANDARDS ................................................ 7
4. CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ........................................................................... 8(1) Consolidated Balance Sheets .............................................................................................................................. 8(2) Consolidated Statements of Income and Comprehensive Income ................................................................... 10(Consolidated Statements of Income) ..............................................................................................................10(Consolidated Statements of Comprehensive Income) .................................................................................... 11(3) Consolidated Statements of Changes in Net Assets ......................................................................................... 12(4) Consolidated Statements of Cash Flows ........................................................................................................... 14(5) Notes to Consolidated Financial Statements .................................................................................................... 15(Notes on Going Concern Assumptions) ..........................................................................................................15(Additional Information) ..................................................................................................................................15(Segment Information) .....................................................................................................................................16― 1 ―1. OVERVIEW OF OPERATING RESULTS(1) Overview of Operating Results for Fiscal 2024
In the consolidated fiscal year, the Japanese economy saw a moderate recovery as economic activities werenormalizing and the employment and income environment was improving in the wake of the downgrading of
COVID-19 to a Class 5 disease. On the other hand, uncertain factors were also observed, such as the risk thatthe downturn of overseas economies caused by the global monetary tightening would influence the Japanese
economy, prices continuing to rise, and various conditions fluctuating in the financial and capital markets.
In the housing sector, the number of construction starts of detached houses has remained below the level ofa year earlier since November 2022, when the number started decreasing year on year due to stagnant housing
demand brought about by continued high housing prices against the background of rising prices. In particular,
the number dipped below 10,000 homes in January and February this year for the first time since August 2020,highlighting a slump in the housing market.
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 “Strengthen our response to sustainability (ESG) issues” in the third medium-term management plan (fromthe fiscal year ended March 31, 2022 to the fiscal year ended March 31, 2024). Accordingly, the Group has
made efforts to strengthen its business foundations and enhance its corporate value.
In the real estate sales segment, we, in our mainstay of new home sales, stepped up the supply of productswith excellent environmental performance, such as ZEH houses and long-life quality housing, in an effort tostimulate demand. As a result, we recorded an increase in the number of homes sold from the previous
consolidated fiscal year in the Tokyo metropolitan area. However, in northern Kanto, the number of homes solddeclined from the previous consolidated fiscal year due to the impact of a deterioration in the market
environment and the end of the special demand caused by COVID-19. Consequently, the number of new homes
sold across the entire group plunged from the previous consolidated fiscal year, resulting in the real estate sales
segment suffering decreases in both net sales and profits.
Similarly, there were decreased net sales and profits in the construction material sales segment due to theimpact of a slump in the housing market. In the real estate leasing segment, both income and profits increased
thanks to higher asset efficiency and an increased number of properties for management. However, thedownturn in the real estate sales segment was so large that net sales and profits on a consolidated basis
decreased from the previous consolidated fiscal year.
Following these initiatives, the Grandy House Group's results for the consolidated fiscal year ended March2024 were as follows: Net sales totaled ¥51,521 million, a decrease of 6.7% year-on-year; operating income
was ¥1,175 million, a decrease of 64.7% year-on-year; ordinary income was ¥877 million, a decrease of 71.7%
year-on-year; and net income attributable to owners of the parent totaled ¥416 million, a decrease of 80.8%
year-on-year.
Operating results by business segment are presented as follows.
a. Real Estate Sales
In new home sales, we engaged in the Tokyo metropolitan area in maintaining and gaining market share
as well as expanding the business by supplying the market with housing developments which have allhomes as ZEH houses or long-life quality housing, such as “Sora Town Tsukuba Matsushiro II (a total of
103 lots in the city of Tsukuba)” and “Mizunoiro Mio no sora, Nagareyama-Unga (a total of 28 lots in thecity of Nagareyama)”with the aim of differentiating ourselves from the competition. In the product side, we
actively supplied ZEH houses and Ohisama EcoCute, which make better use of electricity from solar power
generation during the daytime, as well as long-life quality housing, which gives a sense of security and iscomfortable, and is treated preferentially in terms of mortgage loan interest rates and tax. Moreover, as wewere highly thought of due to factors such as our provision of products and services through our integrated
system from land procurement, the supply of homes to after-sale maintenance and the creation ofsustainable housing, we have ranked No. 1 for five consecutive years in the housing development builders
category of the northern Kanto region in the 2024 Oricon Customer Satisfaction Survey.
However, on the sales side, sales plunged from the previous year as consumer appetite for purchasing
homes remained cool in the face of matters such as a surge in housing prices and the rising prices ofeveryday commodities in addition to a downturn after the special demand brought around by the COVID-19
pandemic. The number of new homes sold decreased by 154 from the previous year to 1,278 as a whole due
to a large drop in the northern Kanto area despite a year-on-year increase in the Tokyo metropolitan area.
― 2 ―In existing home sales, difficult conditions such as a continued rise in procurement prices and costs forhousing renovations, persisted. On the sales side, amid prospective customers’ appetite for purchasing
remaining low as in the case of new homes, as the move of cutting the prices of new homes mainly by major
home builders gained momentum, we continued to be forced to revise our selling prices. Under thesecircumstances, the number of homes sold in the consolidated fiscal year under review was 124, a decreaseof 2 year-on-year.
As a result, sales in the real estate sales segment during the fiscal year under review decreased 5.4%
year-on-year to ¥48,176 million, while segment profit was ¥337 million, down 86.6% from the previous
fiscal year.
b. Construction Material Sales
In the construction material sales, the conditions for receiving orders for pre-cut wood, construction
materials, and the like remained tough due to the impact of a slump in the housing market as the number of
new housing starts for wooden houses remained below the level of a year earlier for 24 consecutive months
until the end of the consolidate fiscal year under review. Construction wood prices exited the downward
trend that started from the peak in the summer of 2022 and have currently remained flat. Under thesecircumstances, we focused on bolstering our relationships with excellent customers and expanding sales in
the Saitama Prefecture area. Nonetheless, our sales and profits decreased year-on-year due to a fall in selling
prices in the wake of the intensifying competition for capturing orders.
As a result, net sales of the construction material sales segment in the consolidated fiscal year underreview decreased by 26.5% year-on-year to ¥2,900 million with a segment profit of ¥257 million, a decreaseof 46.6% year-on-year.
c. Real Estate Leasing
In real estate leasing, we run a leasing business for office buildings and residential buildings and aparking business centered on pay-by-the-hour parking lots. While offices for leasing and others saw theoperational rate and rents almost unchanged as there were no large changes in assets for management during
the term under review, Sun Village Shonan (a total of 173 lots in Kashiwa City, Chiba Prefecture), which
was acquired in the fourth quarter of the previous fiscal year, contributed to earnings throughout the fiscal
year under review. In the parking business, the operational rate of assets under management was in generalon an upward trend as social and economic activities were revitalized in addition to 63 pay-by-the-hourparking lots (in front of the railway station of Koganei, Tochigi Prefecture) that were newly acquired
starting operation from the first quarter.
As a result, sales in the real estate leasing segment for the consolidated fiscal year under review were
¥ 444 million, an increase of 33.2% year-on-year, with a segment profit of ¥240 million, an increase of
51.6% year-on-year.
(2) Overview of Financial Position for Fiscal 2024
As of the end of the consolidated fiscal year under review, consolidated total assets rose to ¥74,468 million,a rise of ¥1,823 million compared to the end of the previous consolidated fiscal year. This is primarily the resultof an increase in inventories resulting from acquisitions of housing lots associated with the expansion of thearea for the real estate sales business and a slowdown in the pace of detached house sales.
Liabilities increased to ¥49,415 million, an increase of ¥2,965 million from the end of the previous fiscal
year. This is mainly due to an increase in interest-bearing liabilities (corporate bonds and borrowings) resulting
from an increase in inventories.
Total net assets stood at ¥25,053 million as of March 31, 2024. This represents a decrease of ¥1,142 million
from the balance recorded as of March 31, 2023. This is primarily due to decreases caused by payments ofdividends to shareholders and purchase of treasury shares despite the acquisition of net income attributable toowners of parent.
(3) Overview of Cash Flows for Fiscal 2024
Cash and cash equivalents (hereinafter, "cash flows") as of the end of the consolidated fiscal year underreview decreased by ¥646 million from the end of the previous fiscal year, as a result of smaller cash flows
from operating activities and investing activities and larger cash flows from financing activities, to reach¥10,179 million.
The Company's cash flows and their factors that cause them to fluctuate during the consolidated fiscal year
under review are presented as follows.
― 3 ―(Cash Flows from Operating Activities)
Net cash used in operating activities amounted to ¥2,223 million (net cash used in operating activities forthe previous fiscal year was ¥8,845 million). This was mainly due to a decrease in funds resulting from anincrease in inventories despite an increase in funds brought by net income before income taxes.
(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to ¥463 million (net cash used in investing activities for theprevious fiscal year was ¥1,488 million). This was mainly due to the acquisition of property, plant andequipment such as parking lots and buildings for leasing.
(Cash Flows from Financing Activities)
Net cash flows provided by financial activities amounted to ¥2,041 million (net cash provided by financial
activities for the previous fiscal year was ¥10,075 million). This was mainly due to proceeds from an increase ininterest-bearing liabilities (corporate bonds and borrowings) despite the payment of dividends and purchase oftreasury shares.
Trends in the Group's cash flow-related indices are presented as follows.
Shareholders' equity ratio (%)
Equity ratio on market value basis (%)
Interest-bearing liabilities to cash flow ratio (years)
Interest coverage ratio (times)

Fiscal 2022
40.4
24.8
—
—

Fiscal 2023
36.0
22.2
—
—

Fiscal 2024
33.6
23.7
—
—

Shareholders' equity ratio: Shareholders' equity/total assets
Equity ratio on a market value basis: Market capitalization/total assets
Interest-bearing liabilities to cash flow ratio: Interest-bearing liabilities/cash flows
Interest coverage ratio: Cash flows/interest payments
Notes: 1. Each index is calculated based on consolidated financial data.
2. Market capitalization is calculated based on the number of issued shares as of the period-end (after
deducting treasury shares).
3. Cash flows from operating activities are used as "cash flows" in the above calculation. As operating
cash flows were negative, the interest-bearing liabilities to cash flow ratio and interest coverage ratio
data have been omitted for these years.
4. Interest-bearing liabilities include all liabilities that bear interest under the liabilities section recordedon consolidated balance sheets.
(4) Outlook for Fiscal 2025
The Japanese economy is expected to continue recovering moderately due to the employment and income
environment improving. However, it is forecast to remain uncertain in the future because the trend for rising
prices, driven mainly by the continued depreciation of the yen and heightened tensions in the Middle East, isprojected to persist. In the housing market, it will take some time for demand to recover as housing prices will
likely stay high for the time being.
In this business environment, the Group aims at returning its decreased earnings in the wake of adeterioration in the market environment to a recovery and growth trend and will take a series of measures
following the basic policies of “Expand and strengthen the housing business toward sustainable growth,”“Reinforce the earnings foundation and implement growth investment for growth,” and “Enhance corporate
value through bolstering the management foundations,” as stated in “Notice on Announcement of Medium-termManagement Plan,” released today.
In consolidated earnings for the fiscal year ending March 31, 2025, we forecast net sales to be ¥54,000
million, a 4.8% increase from the fiscal year ended March 31, 2024, ordinary income to be ¥1,000 million, a
14.0% increase from the same period, and net income attributable to owners of parent to be ¥600 million, a
43.9% increase from the same period.
In the new home sales business, we will drive the effort to expand sales in the Tokyo metropolitan area as
the No. 1 priority issue. To speed up efforts in the Tokyo metropolitan area, we will swiftly advance businessexpansion in a way that meets market characteristics by establishing a Tokyo Metropolitan Area Development
Headquarters and a Tokyo Metropolitan Business Headquarters to supervise the Tokyo metropolitan business.
In parallel, we will engage in expanding business through opening new branches, stepping up productdevelopment and reinforcing business for custom-made homes. Moreover, in the stock business as well, we will
open renovation business and boost the real estate brokerage business, thereby striving to increase earnings
opportunities.
― 4 ―Along with expanding our business scale, we will reinforce cost management and inventory managementand drive the effort for a DX-driven business process transformation in order to restore our earnings
foundations, which had deteriorated in the aftermath of the changed business environment after the special
demand brought about by the pandemic. Additionally, we will advance without fail measures for strengthening
the management foundation including the promotion of management conscious of cost of capital and shareprices, the advancement of sustainable management and the bolstering of the financial structure.
(5) Basic Policy concerning the Allocation of Profits and Dividends for Fiscal 2024 and Fiscal 2025
The Grandy House Group focuses on increasing corporate value and returning more profits to shareholders
in a positive and stable manner as one of its priority management issues. For shareholder returns, we havedetermined the dividend amount for each fiscal year with stable dividend payment in mind while aiming at aconsolidated dividend payout ratio of 35% as the guideline. The dividend per share for fiscal 2024 (the fiscal
year ended March 31, 2024) will be ¥32 yen announced (in Japanese only) on March 25, 2024.
With respect to returning profits for the next fiscal year (the fiscal year ending March 31, 2025) and beyond,in accordance with the new medium-term management plan, we will determine the dividend amount by
ensuring business funds are stable, balancing shareholders’ equity and liabilities appropriately, and taking into
account fund procurement risks due to financial market conditions. Specifically, we set a dividend on equity
ratio (DOE) of 3.5% or so as the guideline within the consolidated final profit for each fiscal year and aim to
pay stable dividends by keeping annual dividends per share at a level of at least ¥32. However, in cases where
the financial conditions deteriorate significantly, such as our suffering a loss over two or more consecutive
fiscal years, we will consider revising the dividend amount. Based on this policy, we plan to pay a dividend of¥32 for the next fiscal year.

― 5 ―2. OVERVIEW OF THE CORPORATE GROUP
The Grandy House Group (Grandy House Corporation and its affiliates) consists of Grandy House
Corporation and eight subsidiaries. The Group is mainly engaged in real estate sales, construction material sales,
and real estate leasing.
The business operations of the Group and the positions of the Grandy House Corporation and its main
subsidiaries (seven companies) in those operations are as follows.
(1) Real Estate Sales
The Grandy House Group purchases housing lots, obtains permits and approvals for development, manages
residential construction works, designs and builds houses, and handles sales and after-sales maintenance.
Sales, design, and construction of detached houses, which are our main business, are in general supervised
by Grandy House Corporation and its subsidiaries by trading area, from the perspective of promoting regionbased sales. General sales areas of each company are as follows:
Grandy House Corporation: Tochigi Prefecture, western part of Ibaraki Prefecture, Saitama Prefecture, andTokyo Metropolis
Ibaraki Grandy House Co., Ltd.: Ibaraki Prefecture (excluding the western part)
Gunma Grandy House Co., Ltd.: Gunma Prefecture
Chiba Grandy House Co., Ltd.: Chiba Prefecture
Kanagawa Grandy House, Inc.: Kanagawa Prefecture
Chuko Jutaku Joho Kan Co., Ltd. is engaged in sales of existing homes and Grandy Reform Co., Ltd. isengaged in the after-sales maintenance and renovation business.
(2) Construction Material Sales
General Livetech Co., Ltd. is engaged in sales of construction materials and components, mainly pre-cut
materials.
(3) Real Estate Leasing
Grandy House Corporation and some of its subsidiaries are engaged in the leasing business of tenantbuildings, apartments and other properties owned by these companies, and the parking lot business.
[Business Group Organization Chart] (As of March 31, 2024)
The matters described above are shown in the following Business Group Organization Chart.
Grandy House Corporation
Supply of pre-cut materials, etc.

Chiba Grandy House Co., Ltd.

Grandy Reform Co., Ltd.

Sales of pre-cut
materials, etc.

Renovation

Sales of existinghomes, etc.

After-sales maintenance

General Livetech
Co., Ltd.

Entrustment of after-sales maintenance

Chuko Jutaku Joho
Kan Co., Ltd.

Kanagawa Grandy House Co., Ltd.

Leasing of houses, stores, and buildings and the parking lot business

Gunma Grandy House Co., Ltd.

Sales of detached houses, etc.
(Ibaraki, Gunma, Chiba, andKanagawa Prefectures)

Sale of detached houses, etc. (Tochigi Prefecture, etc.)

Ibaraki Grandy House Co., Ltd.

Customers
Construction
material sales

Real estate sales― 6 ―Real estateleasing

3. BASIC APPROACH TO THE SELECTION OF ACCOUNTING STANDARDSAt present, the Grandy House Group operates its business only in Japan and most of its stakeholders areshareholders, lenders, and business partners in Japan. The Group has no plan to raise funds from overseas
markets. Against this background, the Group will prepare its consolidated financial statements based on Japanese
GAAP for the time being.
For the application of International Financial Reporting Standards (IFRS), we will take adequate actions while
paying attention to various situations inside and outside Japan.

― 7 ―4. CONSOLIDATED FINANCIAL STATEMENTS AND NOTES(1) Consolidated Balance Sheets(Thousands of Yen)
Fiscal 2023
(As of March 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade and contract assets
Real estate for sale
Costs on uncompleted construction contracts
Real estate for sale in process
Merchandise and finished goods
Raw materials and supplies
Other
Allowance for doubtful accounts

Fiscal 2024
(As of March 31, 2024)

10,839,975
574,709
11,352,157
17,58433,998,068
376,807
176,128
989,203(1)

10,193,701
487,539
13,322,680
19,17834,681,471
295,766
152,029906,320(1,302)58,324,634

60,057,385

6,519,600(2,701,061)

6,617,470(2,901,215)

Buildings and structures, net

3,818,539

3,716,254

Machinery, equipment and vehicles
Accumulated depreciation

107,590(88,609)107,590(94,051)

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

Machinery, equipment and vehicles, net

18,98013,539415,707(363,126)

428,341(383,123)

52,58045,217

7,261,402
170,096(92,893)7,536,497
163,880(105,744)

Leased assets, net

77,202

58,135Construction in progress

20,00045,973

11,248,706

11,415,618

891,319
65,246754,193
58,427

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

Total property, plant and equipment
Intangible assets
Goodwill
Other956,566

812,620

Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts

177,000
9,217
618,717
1,227,394—

270,800
10,642547,404
1,223,988(5,000)Total investments and other assets

2,032,329

2,047,836

Total intangible assets

14,237,601

14,276,074

Deferred assets
Bond issuance costs

83,078135,294

Total deferred assets

83,078135,294

72,645,313

74,468,754

Total non-current assets

Total assets― 8 ―(Thousands of Yen)
Fiscal 2023
(As of March 31, 2023)

Fiscal 2024
(As of March 31, 2024)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,668,472

3,166,738

Short-term loans payable

15,262,600

17,039,600

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

500,000

300,000

3,103,044

4,846,806

Lease obligations

34,124

26,418

Income taxes payable

367,833

137,769

189,175

175,296

Other

1,039,922

876,034

Total current liabilities

24,165,172

26,568,664

Provision for warranties for completed construction

Non-current liabilities
Bonds payable

4,600,000

7,800,000

Long-term loans payable

16,232,236

13,422,390

Lease obligations

50,80538,543

Provision for directors' retirement benefits

257,787

267,837

1,014,424

1,168,527

Retirement benefit liability
Other
Total non-current liabilities
Total liabilities

128,876

149,096

22,284,129

22,846,395

46,449,301

49,415,059

2,077,500

2,077,500

Net assets
Shareholders' equity
Capital stock
Capital surplus

2,674,902

2,677,285

Retained earnings

21,983,746

21,428,435

Treasury shares(629,596)(1,267,754)

26,106,551

24,915,465

Valuation difference on available-for-sale securities

52,000131,849

Total accumulated other comprehensive income

52,000131,849

37,4606,380

26,196,011

25,053,694

72,645,313

74,468,754

Total shareholders' equity
Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets― 9 ―(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Thousands of Yen)
Fiscal 2023
(From April 1, 2022 toMarch 31, 2023)

Fiscal 2024
(From April 1, 2023 toMarch 31, 2024)

Net sales

55,205,407

51,521,546

Cost of sales

45,428,055

43,942,428

Gross profit

9,777,351

7,579,117

Selling, general and administrative expenses

6,448,326

6,404,108

Operating income

3,329,025

1,175,009

Non-operating income
Interest income

122

127

Dividends income

5,611

5,861

Commission

30,90728,895

Insurance claim income

1,184

25,426—

13,731

Other

44,29647,883

Total non-operating income

82,121

121,925

Interest expenses

269,326

367,217

Commission for syndicate loan

13,157

14,041

Other

25,10338,464

Total non-operating expenses

307,587

419,723

3,103,560

877,211

Gain on sales of non-current assets

95,81011,184Gain on reversal of share acquisition rights

2,220

—

Total extraordinary income

98,03011,184

Loss on retirement of non-current assets

14,085

18,581

Total extraordinary loss

14,085

18,581

Net income before income taxes

Reversal of provision for warranties for completed
construction

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

3,187,504

869,813

Income taxes – current

989,910395,597

Income taxes – deferred

28,90457,362

Total income taxes

1,018,815

452,959

Net income

2,168,689

416,853

Net income attributable to owners of the parent

2,168,689

416,853― 10 ―

(Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Fiscal 2023
(From April 1, 2022 toMarch 31, 2023)
Net income

Fiscal 2024
(From April 1, 2023 toMarch 31, 2024)

2,168,689

416,853

34,00079,849Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income

34,00079,8492,202,689

496,7032,202,689

496,703——

Comprehensive income attributable to:Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests― 11 ―

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2023 (From April 1, 2022 to March 31, 2023)

Capital stock
Balance as of the beginning of the period
Changes of items during the period
Dividends from surplus
Net income attributable to owners of the parent
Disposal of treasury shares
Exercise of share acquisition rights
Forfeiture of share acquisition rights
Net changes to items other than shareholder
equityTotal changes of items during the period
Balance as of the end of the period

Balance as of the beginning of the period
Changes of items during the period
Dividends from surplus
Net income attributable to owners of the parent
Disposal of treasury shares
Exercise of share acquisition rights
Forfeiture of share acquisition rights
Net changes to items other than shareholder
equityTotal changes of items during the period
Balance as of the end of the period

2,077,500(Thousands of Yen)
Shareholders' equity
Retained
Total shareholders'Capital surplus
Treasury sharesearnings
equity2,592,335
20,718,007(813,488)
24,574,354(902,950)
2,168,689
135,421
48,469(902,950)
2,168,689
135,421
131,037

1,265,738
21,983,746

183,891(629,596)

1,532,197
26,106,551

ShareacquisitionrightsTotal net assets

67,86024,660,214(28,180)(2,200)(902,950)
2,168,689
135,421102,857(2,200)82,567—2,077,500

82,5672,674,902

Accumulated othercomprehensive income
Valuation
Total
difference on
accumulated
availableotherfor-salecomprehensive
securities
income18,00018,00034,00034,00034,00052,00034,00052,000― 12 ―

34,000(30,400)
37,4601,535,797
26,196,011

Fiscal 2024 (From April 1, 2023 to March 31, 2024)

Capital stock
Balance as of the beginning of the period
Changes of items during the period
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury shares
Disposal of treasury shares
Exercise of share acquisition rights
Net changes to items other than shareholder
equityTotal changes of items during the period
Balance as of the end of the period

Balance as of the beginning of the period
Changes of items during the period
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury shares
Disposal of treasury shares
Exercise of share acquisition rights
Net changes to items other than shareholder
equityTotal changes of items during the period
Balance as of the end of the period

2,077,500(Thousands of Yen)
Shareholders' equity
Retained
Total shareholders'Capital surplus
Treasury sharesearnings
equity2,674,902
21,983,746(629,596)
26,106,551(972,164)
416,853(915,200)
134,902
142,139(972,164)
416,853(915,200)
134,902
144,522(555,310)
21,428,435(638,157)(1,267,754)(1,191,086)
24,915,465

ShareacquisitionrightsTotal net assets

37,46026,196,011(31,080)(972,164)
416,853(915,200)
134,902
113,4422,382—
2,077,500

2,382
2,677,285

Accumulated othercomprehensive income
Valuation
Total
difference on
accumulated
availableotherfor-salecomprehensive
securities
income52,00052,00079,84979,84979,849131,849

79,849131,849― 13 ―

79,849(31,080)
6,380(1,142,317)
25,053,694

(4) 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 for completed
construction
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement 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
Loan advances
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 exercise ofshare acquisition rights
Purchase of treasury 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― 14 ―

Fiscal 2023
(From April 1, 2022 toMarch 31, 2023)

Fiscal 2024
(From April 1, 2023 toMarch 31, 2024)

3,187,504
294,467
137,126

869,813
303,990
137,126

6,091

10,0503,706(13,878)(4,396)109,612(5,733)
269,326(2,220)(95,810)
14,085
127,957(11,062,668)(201,756)
275,157(6,947,550)
5,758(272,117)(1,631,634)(8,845,544)

6,301
154,103(5,988)367,217—(11,184)
18,581
82,169(2,550,378)(501,733)
2,589(1,131,221)
8,595(347,512)(753,841)(2,223,979)(1,658,012)
243,551(33,170)—
5,384(36,000)(9,919)(1,488,167)(562,204)
116,245(13,611)(2,300)875(9,000)6,676(463,318)

2,179,900
12,613,000(5,763,311)
2,800,000(1,000,000)

1,777,000
7,052,000(8,118,084)
3,500,000(500,000)

48,469116,385—
135,421(901,988)(35,849)
10,075,642(258,068)
11,083,535
10,825,466(915,200)
134,902(971,943)(34,036)
2,041,023(646,274)
10,825,466
10,179,192

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Additional Information)(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 in the fiscal year ended March 31, 2022.
(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 a trust bank. The Trust will acquire in advance after its establishment the number ofGrandy House shares to be expected to be acquired by the Stock Partnership over a six-year period. At alater date, the Trust will sell its holdings of Grandy House shares to the Stock Partnership on a continual
basis. If an amount equivalent to the gains from sale of shares is accumulated at the end of the term of theTrust, the relevant amount equivalent to the gains 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 fromsale of shares accumulates due to a decline in the price of shares 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 bookvalue and the number of the relevant treasury shares are ¥553,516 thousand and 959,300 shares for theprevious consolidated fiscal year, and ¥418,613 thousand and 725,500 shares for the consolidated fiscal
year under review.
(3) The book value of loans payable recorded by the application of the gross method
The previous consolidated fiscal year: ¥534,370 thousand
The consolidated fiscal year under review: ¥369,530 thousand― 15 ―

(Segment Information)
1. Overview of reportable segments
The reportable segments of the Group are components for which separate financial information is available
and whose operating results are regularly reviewed by the Company's Board of Directors when making
decisions about the allocation of management resources and assessing performance.
The Grandy House Group is engaged in the following businesses: new home sales, existing home sales,
home renovation, construction material sales and real estate leasing (all of which are operated in Japan). A
portion or all of operations for new home sales, existing home sales and home renovation are conducted bysubsidiaries. From the perspective of similarity, relationships, and sharing of common management resources,
these three businesses are regarded as one business segment, Real Estate Sales. The Company devises overall
strategies for this real estate sales segment and conducts business activities.
Accordingly, the Group's three reportable segments are classified as Real Estate Sales, Construction
Material Sales, and Real Estate Leasing.
The Real Estate Sales business includes sales of new homes (including building contracts and sale of land,etc.) and existing homes and home renovation. The Construction Material Sales business comprises the
production and sale of pre-cut materials for housing and sale of construction materials and home facilities andequipment. In the Real Estate Leasing business, activities comprise the leasing of office, homes, related
properties, and parking facilities, etc.
2. Calculation method of net sales, profit or loss, assets, liabilities, and other items by reportable segment
The accounting method for reportable segments complies with the accounting policy that is applied to the
preparation of consolidated accounting statements. Segment profit and loss are based on ordinary income. Intersegment sales or transfers are calculated based on market prices.
3. Information concerning the amounts of net sales, profit or loss, assets, liabilities, and other items by reportablesegment
Fiscal 2023 (From April 1, 2022 to March 31, 2023)(Thousands of Yen)
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

50,925,204

3,946,711

333,491

53,5204,860,118

81,994

Adjustments(Note 1)

AmountReported on
Consolidated
Financial
Statements(Note 2)55,205,407—

55,205,407

4,995,633(4,995,633)

—

Total

Net sales
Sales to external customers
Inter-segment sales or transfers

50,978,724

8,806,829

415,486

60,201,040(4,995,63)

55,205,407

Segment profit

Total

2,526,452

481,344

158,317

3,166,114(62,553)

3,103,560

Segment assets

56,625,883

2,790,458

5,329,390

64,745,732

7,899,581

72,645,313

Segment liabilities

44,557,243

2,010,115

394,526

46,961,885(512,583)

46,449,301

Depreciation and amortization

203,296

22,12369,047294,467—

294,467

Amortization of goodwill

137,126——

137,126—

137,126

Other items

Interest income

119

2

—

122

—

122

Interest expenses

262,376

6,120

829

269,326—

269,326

Increase in property, plant and equipment
and intangible assets

263,697

36,186

1,403,992

1,703,876—

1,703,876― 16 ―

Fiscal 2024 (From April 1, 2023 to March 31, 2024)(Thousands of Yen)
Reportable Segment
Adjustments(Note 1)

AmountReported on
Consolidated
Financial
Statements(Note 2)

51,521,546—

51,521,546

83,786

3,877,457(3,877,457)—

527,926

55,399,003(3,877,457)

51,521,546

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

48,176,695

2,900,710

444,140

52,6803,740,991

48,229,375

6,641,701

Total

Net sales
Sales to external customers
Inter-segment sales or transfers
Total
Segment profit

337,468

257,226

240,044834,739

42,471

877,211

Segment assets

58,538,894

2,320,563

5,480,537

66,339,996

8,128,758

74,468,754

Segment liabilities

47,774,161

1,675,341

366,21149,815,714(400,655)

49,415,059

Depreciation and amortization

192,466

21,416

90,106

303,990—

303,990

Amortization of goodwill

137,126——

137,126—

137,126

Interest income

124

2

—

127

—

127

Interest expenses

361,346

5,318

551

367,217—367,217580,755—

580,755

Other items

Increase in property, plant and equipment
106,123and intangible assets
Note 1: Details of adjustments are presented as follows.

68,034

406,598

Segment profit(Thousands of Yen)
Fiscal 2023
Eliminations of inter-segment transactions
Total

Fiscal 2024
(62,553)

42,471(62,553)

42,471

Segment assets(Thousands of Yen)
Fiscal 2023

Fiscal 2024

Eliminations of inter-segment receivables(512,583)(400,450)

Eliminations of inter-segment unrealized profit(96,171)(67,410)

8,508,336

8,596,619

7,899,581

8,128,758

Corporate assets*
Total* Corporate assets mainly comprise cash and deposits as well as investment securities which are not attributable to reportable segments.

Segment liabilities(Thousands of Yen)
Fiscal 2023
Eliminations of inter-segment payables
Total

Fiscal 2024
(512,583)(400,655)(512,583)(400,655)

Note 2: Segment profit has been adjusted with the ordinary income described in consolidated financial statements.

― 17 ―