Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience.
Since no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company.
This summary does not constitute any guarantee and will not compensate any losses and/or damage stemming from actions taken based on thesestatements. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.

Consolidated Financial Report
For the First Quarter of Fiscal 2016 Ending March 31, 2016 (Japanese GAAP)
August 10, 2015
Tokyo Stock Exchange
http://www.grandy.co.jp

Company Name:Grandy House Corporation
Stock Exchange Listing:
Securities Code:
8999
URL:
Representative:
Hiroyuki Murata, President
Inquiries:
Atsuo Saito, Senior Managing Director
Scheduled date of quarterly securities report filing:
August 11, 2015
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
None
Quarterly results briefing held:
None

TEL: +81-28-650-7777(Figures are rounded down to the nearest million yen unless otherwise stated)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2016
(April 1, 2015 to June 30, 2015)(1) Consolidated Operating Results

Net Sales(Percentage figures show the year-on-year increase (decrease).)Net Income Attributableto Owners of the Parent
Operating Income
Ordinary Income
Company(¥ million)%(¥ million)%(¥ million)%(¥ million)

%

9,930

23.5

668

56.7

694

51.2

439

61.6

8,041

(11.6)

426(43.9)

459(41.8)

271(43.1)

Three months ended
June 30, 2015
Three months ended
June 30, 2014
Note: Comprehensive Income

Three months ended June 30, 2015: ¥446 million (69.8%)
Three months ended June 30, 2014: ¥263 million (−44.9%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Three months ended
June 30, 2015
Three months ended
June 30, 2014

15.26

—

9.44

—

(2) Consolidated Financial Position
Total Assets

Net Assets(¥ million)
37,28435,846

June 30, 2015
March 31, 2015
Reference: Shareholders’ equity

Shareholders’ Equity
Ratio(¥ million)
15,32515,084

Net Assets per Share

%
40.8
41.9

(¥)
529.10521.57

June 30, 2015: ¥15,225 million
March 31, 2015: ¥15,009 million

2. Dividends
1Q-End2Q-End(¥)——

Fiscal 2015
Fiscal 2016
Fiscal 2016 (Forecast)

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

—

Period-End

Total
(¥)
8.00

(¥)
8.00

12.00

12.00

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

3. Consolidated Financial Forecasts for Fiscal 2016 (April 1, 2015 to March 31, 2016)

Net SalesInterim Period
Full Fiscal Year(¥ million)
19,50040,500%
8.7
8.1(Percentage figures show the year-on-year increase (decrease) for each corresponding period.)
Net Income
Attributable toOperating Income
Ordinary Income
Net Income per ShareOwners of the Parent
Company(¥ million)%(¥ million)%(¥ million)
%
(¥)
1,150
14.3
1,200
13.8
730
14.0
25.37
2,700
11.8
2,750
9.4
1,700
8.4
59.07

Note: Revisions to the most recently announced financial forecasts in the current quarter: None* Explanatory notes(1) Changes of important subsidiaries during the period(changes in specified subsidiaries resulting in a change in the scope of consolidation): None
Newly included: —Excluded: —(2) Adoption of specific methods for preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and restatements
1) Changes in accounting policies in connection with revision to accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatements:(4) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding
June 30, 2015
as of the period-end (including treasury shares)June 30, 2015
2) Number of treasury shares
Three months
3) Average number of shares issued andended June 30,
outstanding for the period
2015

Yes
None
None
None

30,823,200 shares

March 31, 2015

30,823,200 shares

2,046,245 shares

March 31, 2015
Three months
ended June 30,
2014

2,046,198 shares

28,776,955 shares

28,777,002 shares*

Disclosure concerning the implementation status of quarterly review proceduresThis Quarterly Consolidated Financial Report is exempt from the quarterly review procedures required by the Financial
Instruments and Exchange Act of Japan. At the time of this report’s disclosure, the quarterly review process for quarterly
consolidated financial statements under the Financial Instruments and Exchange Act has not been completed.

*

Explanation concerning the appropriate use of forecasts and other special instructions
The forecast data presented in this report are based on currently available information and contain a significant number of
uncertainties. Actual results may differ from forecast data due to changes in business conditions.

Attachment Materials: Table of Contents
1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS.................................................................. 2(1) Explanation regarding Operating Results ................................................................................................................ 2(2) Explanation regarding Financial Position ................................................................................................................ 3(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts ............................................ 3
2. MATTERS CONCERNING SUMMARY INFORMATION (Notes) .................................................................... 3(1) Changes of Important Subsidiaries during the Period ............................................................................................. 3(2) Adoption of Specific Methods for Preparation of the Quarterly Consolidated Financial Statements ..................... 3(3) Changes in Accounting Policies, Accounting Estimates, and Restatements ........................................................... 3
3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS ........................................................................ 4(1) Quarterly Consolidated Balance Sheets................................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............. 6(Quarterly Consolidated Statements of Income) .....................................................................................................6(Quarterly Consolidated Statements of Comprehensive Income)............................................................................7(3) Notes to Quarterly Consolidated Financial Statements ........................................................................................... 8(Notes on Going Concern Assumptions) .................................................................................................................8(Notes on Significant Changes in the Amount of Shareholders’ Equity) ................................................................8(Segment and Other Information)............................................................................................................................8―1―

1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
During the three months ended June 30, 2015, the Japanese economy continued to show a moderate recovery
thanks to steady improvements in the employment situation and wage conditions on the back of robust corporate
earnings. At the same time, the Greek credit crisis and a slowdown in the Chinese economy presented uncertainty
for the coming months.
In the housing sector, improvement in home buyers' sentiment was observed owing to a series of incentives
by the government and the easy monetary policy launched by the Bank of Japan. A significant increase wasobserved in new housing starts for condominiums, while it is also believed that home orders for detached houses(custom-built and built-for sale) are on a moderately increasing trend.
Under these circumstances, the Grandy House Group stood by its basic policy of "aiming for continuous
growth while reinforcing the core operation of property sales with an emphasis on new homes" and worked on
expanding its business. In new home sales, we established a new sales office and worked on building up
inventory along the theme of securing increased orders in the area stretching from southern Ibaraki Prefecture to
Kashiwa City in Chiba Prefecture, and, in our long-standing markets, we boosted our efforts to provide
customers with information about the merits of our offerings by, for example, opening a branch which houses a
showroom in it. We also redoubled our sales efforts by holding events such as "Town Opening" to introduce a
new subdivision of housing lots and "Grandy Plaza Day" to promote sales.
As a result of these factors, the Grandy House Group’s consolidated results for the first quarter of Fiscal 2016
were as follows. Net sales were ¥9,930 million, up 23.5% from the same period of the previous fiscal year;
operating income rose to ¥668 million, an increase of 56.7%; ordinary income was ¥694 million, an increase of
51.2%; and net income attributable to owners of the parent company totaled ¥439 million, an increase of 61.6%.
Results by business segment are presented as follows.
Real Estate Sales
In the new home sales business, we worked on developing the area stretching from southern Ibaraki
Prefecture to Kashiwa City, Chiba Prefecture, which is a key area due to the size of the market and otherpotential, and opened Moriya Branch (Moriya City, Ibaraki) under IBARAKI Grandy House in April with a view
to focusing on home sales along the Tsukuba Express line as well as working to build up inventory and secure
more orders under CHIBA Grandy House. In the meantime, in Tochigi Prefecture, our long-time primary market,
we opened Inter Park Branch (Utsunomiya City, Tochigi) in May which also houses "Grandy Plaza," ashowroom where customers can experience features of our houses, with a view to boost our efforts to provide
customers with information about the merits of our offerings and to cultivate existing markets more extensively.
Also, we held a number of events such as "Town Opening" to introduce a new subdivision of housing lots
and "Grandy Plaza Opening Anniversary," appealing to visitors with the assurance and safety that is madepossible by our group services spanning the entire process from development and construction of housing lots
and homes to sales and after-sales maintenance. As a result, new home sales for the April to June period came to
293 homes, up 43 from the same period last year when the impact of the consumption tax hike was being felt
acutely.
In existing home sales, the overall number of good properties available in the entire industry remained low,but, with the target of 100 homes in inventory (75 homes at the end of the previous fiscal year), we stepped up
our efforts to build up inventory at the Ibaraki Branch (Joso City, Ibaraki) which opened in February so as toexpand our marketing area and vary our sources. In sales of existing homes, circumstances continued to be toughas we were affected by moves to sell off low-cost new homes. As a result, existing home sales for the April toJune period came out to be 29 homes, up 4 homes from a year earlier.
As a result of these factors, revenues in the real estate sales segment increased 25.1% year-on-year to ¥9,142
million. Segment profit rose to ¥613 million, up 41.7% from the same period of the previous fiscal year.
Construction Material Sales
In the construction material sales segment, we continued to witness a tough environment in orders for pre-cut
materials even though there was a moderate recovery in new housing starts. However, the prices of woodcontinued to be low on the back of sluggish demand.
Under such circumstances, we continued to work hard to secure orders for building materials other than precut materials and to boost production while reviewing the allocation of operating hours on the back of increased
intra-group sales. As a result, both sales and profit increased in the quarter under review from a year earlier.
―2―

As a result of these initiatives, revenues in the construction materials sales segment increased 9.4% year-onyear to ¥723 million. Segment profit rose to ¥54 million, up 23.3% from a year earlier.
Real Estate Leasing
In the real estate leasing segment, we saw robust demand especially for smaller properties in and around
Utsunomiya City, Tochigi, which is our primary market. Sales from this segment saw a decline from the previous
year, when we sold off some assets (one rental apartment building and one pay-by-the-hour parking lot), but
profit increased as we worked on increasing the occupancy ratio of existing real estate for leasing.
As a result, revenues in the real estate leasing segment totaled ¥65 million, down 6.2% from a year earlier,while segment profit rose 9.4% to ¥43 million.
(2) Explanation regarding Financial Position
Total assets stood at ¥37,284 million as of June 30, 2015, up ¥1,438 million compared with the end of theprevious fiscal year owing mainly to an increase in current assets. Current assets increased as we changed thelevel of inventory of real estate for sale, and worked to build up inventory in the existing home sales segment.
Total liabilities grew ¥1,196 million to ¥21,958 million as we saw current liabilities increase compared to theend of the previous fiscal year. The increase in current liabilities was due to a rise in short-term borrowings asreal estate for sale increased.
Total net assets stood at ¥15,325 million as of June 30, 2015, up ¥241 million compared with the end of theprevious fiscal year. The main reasons are payments of dividends to shareholders and the acquisition of net
income attributable to owners of the parent company.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There is no change to financial forecasts announced on May 11, 2015.
2. MATTERS CONCERNING SUMMARY INFORMATION (Notes)(1) Changes of Important Subsidiaries during the Period
Not applicable.
(2) Adoption of Specific Methods for Preparation of the Quarterly Consolidated Financial Statements
Not applicable.
(3) Changes in Accounting Policies, Accounting Estimates, and Restatements(Changes in accounting policies)(Application of accounting standards for business combinations, etc.)
We started to apply the "Revised Accounting Standard for Business Combinations" (ASBJ Statement No.
21, September 13, 2013), "Revised Accounting Standard for Consolidated Financial Statements" (ASBJ
Statement No. 22, September 13, 2013) and "Revised Accounting Standard for Business Divestitures" (ASBJ
Statement No. 7, September 13, 2013) in the three month period ended June 30, 2015, which have resulted inchanges in the way we present the net income, etc. for the quarter. To better reflect such changes, we alsochanged the way we present the consolidated financial statements for the three month period that ended June30, 2014.

―3―

3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2015(As of March 31, 2015)

First Quarter of FY2016(As of June 30, 2015)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Real estate for sale
Costs on uncompleted construction contracts
Real estate for sale in process

6,621,018

6,742,454

734,021733,934

10,704,928

11,236,925

6,251

11,106

6,688,779

7,321,556

Merchandise and finished goods

145,413

165,812Raw materials and supplies

111,279

106,339

Deferred tax assets

122,613

99,268

Other

401,046

496,158

Allowance for doubtful accounts(5,344)(4,781)

25,530,008

26,908,775

3,083,718

3,192,292

8,785

12,459Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets

48,98650,674

5,851,832

5,851,832

107,325

96,17958,652643

9,159,301

9,204,082

67,616

64,119767,434

778,941

Investments and other assets
Investment securities
Long-term loans receivable

19,87019,534

Deferred tax assets

108,270

111,533

Other

197,708

201,487

Allowance for doubtful accounts(3,816)(3,814)

Total investments and other assets

1,089,467

1,107,682

10,316,385

10,375,885

35,846,393

37,284,660

Total non-current assets
Total assets―4―

(Thousands of Yen)FY2015(As of March 31, 2015)

First Quarter of FY2016(As of June 30, 2015)

Liabilities
Current liabilities
Accounts payable for construction contracts

2,772,752

3,005,164

Short-term loans payable

14,074,690

15,389,800

Current portion of long-term loans payable

400,508

374,132

Current portion of bonds

21,00021,000

Lease obligations

43,99945,216

Income taxes payable582,687

183,653

Provision for warranties for completed construction

51,16752,454

Other

721,606

872,111

18,668,411

19,943,532

129,000

118,500

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

1,409,644

1,324,504

Lease obligations

69,52555,889Provision for directors’ retirement benefits

71,20478,629Net defined benefit liability

358,010378,108

Asset retirement obligations

–

4,157

Other
Total non-current liabilities
Total liabilities

56,41655,517

2,093,801

2,015,305

20,762,212

21,958,837

2,077,500

2,077,500

Net assets
Shareholders’ equity
Capital stock
Capital surplus

2,205,165

2,205,165

Retained earnings

11,049,455

11,258,301

Treasury shares(351,814)(351,831)

14,980,306

15,189,135

Valuation difference on available-for-sale securities

28,87436,687

Total accumulated other comprehensive income

28,87436,68775,000100,000

15,084,180

15,325,822

35,846,393

37,284,660

Total shareholders’ equity
Accumulated other comprehensive income

Subscription rights to shares
Total net assets
Total liabilities and net assets―5―(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of Yen)
Three months ended June30, 2014(From April 1, 2014 to June30, 2014)

Three months ended June30, 2015(From April 1, 2015 to June30, 2015)

Net sales

8,041,238

9,930,898

Cost of sales

6,612,488

8,201,427

Gross profit

1,428,749

1,729,471

Selling, general and administrative expenses

1,002,469

1,061,289

426,279

668,181

Operating income
Non-operating income
Interest income

131

161

Dividends income

2,141

2,455

Operations consignment fee

49,40854,480

Office work fee

29,87834,394

Other

19,958

7,066

Total non-operating income

101,518

98,55768,75572,720Non-operating expenses
Interest expenses
Total non-operating expenses

68,75572,720459,042694,018

Loss on retirement of non-current assets

2,494

2,066

Loss on cancellation of lease contracts

1,143

–

Total extraordinary loss

3,638

2,066

Net income before income taxes

455,404

691,952

Income taxes–current

147,940

236,496

Income taxes–deferred

35,816

16,393

Total income taxes

183,757

252,890

Net income

271,647

439,061

Net income attributable to owners of the parent company

271,647

439,061

Ordinary income
Extraordinary loss

―6―

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Three months ended June30, 2014(From April 1, 2014 to June30, 2014)
Net income

Three months ended June30, 2015(From April 1, 2015 to June30, 2015)

271,647

439,061

Valuation difference on available-for-sale securities(8,400)7,813

Total other comprehensive income(8,400)

7,813

263,246446,875

263,246446,875––

Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests―7―

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable.
(Segment and Other Information)
Segment Information
I. The three months ended June 30, 2014 (April 1, 2014 to June 30, 2014)
1. Information relating to the amounts of net sales, profit and loss by reportable segment
Reportable Segment

Net sales
Sales to outside
customers
Intersegment sales
and transfers
Total
Segment profit

Adjustments(Note 1)(Thousands of Yen)
AmountRecorded on
Quarterly
Consolidated
Statements ofIncome (Note 2)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

7,310,665

661,101

69,471

8,041,238—

8,041,238—

734,996

16,430751,426(751,426)—

7,310,665
432,681

1,396,097
44,07085,90139,3998,792,664
516,151(751,426)(57,108)

8,041,238
459,042

Total

Notes: 1 Adjustments of segment profit (−¥57,108 thousand) are eliminations of intersegment transactions.
2 Segment profit has been adjusted to ordinary income described in quarterly consolidated statements of income.

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.
II. The three months ended June 30, 2015 (April 1, 2015 to June 30, 2015)
1. Information relating to the amounts of net sales, profit and loss by reportable segment
Reportable Segment

Net sales
Sales to outside
customers
Intersegment sales
and transfers
Total
Segment profit

Adjustments(Note 1)(Thousands of Yen)
AmountRecorded on
Quarterly
Consolidated
Statements ofIncome (Note 2)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

9,142,369

723,333

65,1949,930,898—

9,930,898—

808,714

20,373829,088(829,088)—

9,142,369
613,174

1,532,048
54,32485,56843,12010,759,986
710,619(829,088)(16,601)

9,930,898
694,018

Total

Notes: 1 Adjustments of segment profit (−¥16,601 thousand) are eliminations of intersegment transactions.
2 Segment profit has been adjusted to ordinary income described in quarterly consolidated statements of income.

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

―8―