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 2021 (Fiscal Year Ended March 31, 2021 under Japanese GAAP)
Company Name: Grandy House Corporation
Stock Exchange Listing:
Securities Code: 8999
URL:
Representative:
Yasuro Hayashi, President
Inquiries:
Takanori Saito, Executive Officer & Administration Manager
Scheduled date of the Ordinary General Meeting of Shareholders: June 29, 2021
Scheduled date of securities report filing:
June 29, 2021
Scheduled date of dividend payment commencement:
June 30, 2021
Preparation of annual supplementary explanatory materials:
Yes
Annual results briefing held:
None

May 10, 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 Fiscal 2021 (April 1, 2020 to March 31, 2021)(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 2021
47,024
3.3
1,958
(8.6)
2,106
(8.8)
1,732
22.6
Fiscal 2020
45,5412.5
2,142(31.6)
2,310(29.7)
1,413(31.6)
Note: Comprehensive income
Fiscal 2021: ¥1,753 million (20.0%)
Fiscal 2020: ¥1,460 million (-27.7%)
Net Income per
Net Income per
Ordinary Income /Operating Income /Return on Equity
Share
Share (Diluted)
Total Assets
Net Sales
(¥)
(¥)
%
%
%
Fiscal 2021
59.57
59.39
7.7
3.7
4.2
Fiscal 2020
48.84
48.26
6.6
4.5
4.7
Reference: Equity in earnings of affiliates
Fiscal 2021: ― (¥ million)
Fiscal 2020: ― (¥ million)(2) Consolidated Financial Position
Total Assets
Net Assets(¥ million)(¥ million)
March 31, 2021
58,11323,293
March 31, 2020
55,98622,143
Reference: Shareholders' equity
Fiscal 2021: ¥23,140 million
Fiscal 2020: ¥21,972 million

Shareholders' Equity Ratio
%
39.8
39.2

Net Assets per Share

Cash Flows from
Financing Activities(¥ million)
(58)
5,402

Cash and Cash Equivalents
at the End of the Period(¥ million)
13,34910,336(¥)
791.12755.83(3) Consolidated Cash Flows

Fiscal 2021
Fiscal 2020

Cash Flows fromOperating Activities(¥ million)
3,481(2,546)

Cash Flows from
Investing Activities(¥ million)(410)(2,520)2. Dividends
Annual Dividend per Share

Fiscal 2020
Fiscal 2021
Fiscal 2022 (Forecast)

1Q-End2Q-End3Q-End

(¥)
―
―
―

(¥)
0.00
0.00
0.00

(¥)
―
―
―

PeriodEnd
(¥)
23.00
24.00
20.00

Total
(¥)
23.00
24.00
20.00

Total
Dividends(¥ million)
668
702

Payout Ratio(Consolidated)
%
47.1
40.3
36.6

Ratio of
Dividends to
Net Assets(Consolidated)
%
3.1
3.1

3. Consolidated Financial Forecasts for Fiscal 2022 (April 1, 2021 to March 31, 2022)

Net Sales
Full Fiscal Year(¥ million)
52,400Operating Income%—(¥ million)
2,600

%
—

(Percentage figures show the year-on-year increase (decrease).)Net Income
Ordinary Income
Attributable to
Net Income per ShareOwners of the Parent(¥ million)%(¥ million)
%
(¥)
2,400
—
1,600
—
54.70

Note: As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) and other standards will be applicable from the beginning of the
fiscal year ending March 31, 2022, the above-stated consolidated financial forecast reflects figures after the application of such standards, and thepercentage changes representing the year-on-year increase (decrease) are not stated.

* 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) Changes in accounting policies, accounting estimates, and restatement of revisions
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

None
None
None
None

March 31, 2021

30,823,200 shares

March 31, 2020

30,823,200 shares

March 31, 2021
March 31, 2021

1,572,645 shares
29,086,124 shares

March 31, 2020
March 31, 2020

1,752,445 shares
28,932,663 shares

Reference: Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for Fiscal 2021 (April 1, 2020 to March 31, 2021)(1) Non-Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Fiscal 2021
Fiscal 2020

Net Sales(¥ million)
22,87020,405

%
12.1
(4.3)

Net Income per Share
(¥)
66.13
58.25

Fiscal 2021
Fiscal 2020

Operating Income(¥ million)
%
1,146
0.4
1,142
(36.5)

Ordinary Income(¥ million)
%
2,165
(2.4)
2,218
(22.4)Net Income(¥ million)
%
1,923
14.1
1,685
(18.5)

Shareholders' Equity Ratio
%
54.0
54.1

Net Assets per ShareNet Income per Share(Diluted)
(¥)
65.93
57.56

(2) Non-Consolidated Financial Position
Total Assets
Net Assets(¥ million)(¥ million)
March 31, 2021
37,80820,559March 31, 2020
35,19819,218Reference: Shareholders' equity
Fiscal 2021: ¥20,407 million
Fiscal 2020: ¥19,048 million(¥)
697.67655.23

2. Non-Consolidated Financial Forecasts for Fiscal 2022 (April 1, 2021 to March 31, 2022)(Percentage figures show the year-on-year increase (decrease).)Full Fiscal YearNet Sales(¥ million)
26,000%—Ordinary Income(¥ million)
2,200

%
—

Net Income(¥ million)
1,700

Net Income per Share
%
—

(¥)
58.12

Note: As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) and other standards will be applicable from the
beginning of the fiscal year ending March 31, 2022, the above-stated consolidated financial forecast reflects figures after the application ofsuch standards, and the percentage changes representing the year-on-year increase (decrease) are not stated.

*

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:
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 (1) Overview of Operating Results for Fiscal 2021" on page 2 of the attachment materials for
information regarding the underlying 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 2021 ................................................................................................. 2(2) Overview of Financial Position for Fiscal 2021 ................................................................................................. 3(3) Overview of Cash Flows for Fiscal 2021 ........................................................................................................... 4(4) Outlook for Fiscal 2022 ..................................................................................................................................... 4(5) Basic Policy concerning the Allocation of Profits and Dividends for Fiscal 2021 and Fiscal 2022................... 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 2021
The Japanese economy during the consolidated fiscal year under review recorded the worst negative growth
in GDP in the April-June 2020 period in the country's post-war era due to the impact of the state of emergency
declared following the spread of COVID-19 and other factors. Despite a limited recovery of the two consecutive
quarters following such period, the economy has remained uncertain after the re-declaration of the state of
emergency of this year.
In the housing sector, the business environment has also been in a difficult situation due to restrictions on
business activities, calls for customers to restrain voluntarily from going out, and other measures taken
particularly during the period of a state of emergency of the last year. This environment led to a significant dropin the number of new housing starts compared to the previous fiscal year. However, new trends also emerged,
including increased customer interest in detached houses due to factors such as the need to "Avoid the Three Cs"
and the expansion of working from home.
Under these circumstances, the Grandy House Group has continued to make efforts to build a businessfoundation that is ready for the emergency, and to place top priority on the safety of customers and the health of
employees; for example, the Group has taken thorough infection control measures, while creating a sales
structure that utilizes IT technologies and a production system that responds flexibly to environmental change.
With regard to new home sales, one of our core operations, we have worked to enhance our online sales
activities while taking thorough measures against infections and to increase sales by reinforcing the sales
structure in Saitama and Kanagawa Prefectures, where we had expanded our sales areas in the previous fiscal
year. In existing home sales, we endeavored to secure inventory with a view to expanding the number of homes
sold amid a worsening purchasing environment, such as the suspension of auction bidding.
Through these efforts, both the number of homes sold and the net sales for new home sales reached record
high levels despite a decrease in the number of orders received in the first quarter thanks to their subsequent
recovery. In existing home sales, however, the number of homes sold decreased year-on-year due to theremaining impact of a drop in purchases in the first half of fiscal 2021. In terms of profits, although ordinary
income decreased year-on-year because of factors such as a decline in the gross margin ratio following the
introduction of tighter inventory controls and an increase in investment costs connected with the businessexpansion, net income attributable to owners of the parent increased year-on-year as a result of the extraordinary
income recorded following the refunding of consumption taxes.
As a result of these initiatives, the Grandy House Group's results for the consolidated fiscal year ended March
31, 2021 were as follows. Net sales were ¥47,024 million, an increase of 3.3% year-on-year; operating income
decreased to ¥1,958 million, a decrease of 8.6% year-on-year; ordinary income was ¥2,106 million, a decrease of
8.8% year-on-year; and net income attributable to owners of the parent totaled ¥1,732 million, an increase of
22.6% year-on-year.
Operating results by business segment are presented as follows.
a. Real Estate Sales
In new home sales, we have conducted our sales activities by taking thorough measures to prevent COVID-19
infections while working to strengthen our online sales activities and further improve our Internet advertising. In
Saitama Prefecture, which we added as a new sales area in the previous fiscal year, we have expanded ourbusiness by increasing the number of sales personnel while strengthening our advertising activities to improve
our brand recognition. Meanwhile, our subsidiary in Kanagawa Prefecture, which we acquired in the previous
fiscal year, tightened its inventory controls and began selling homes that it had constructed itself.
In terms of products, we have continued to differentiate ourselves from our competitors by providing highvalue-added products, including the creation of a townscape that excels in comfort and safety in consideration offamilies with children as well as houses with enhanced countermeasures against natural disasters, such as
typhoons and flooding. We have also proposed a new way of living that flexibly supports diversifying workstyles
and changing lifestyles in response to changing housing environment needs to cope with the Coronavirus(COVID-19) crisis. We did this through initiatives such as offering homes featuring multipurpose spaces used forworking from home as well as homes situated in "outer urban city" locations featuring a spacious living
environment and good access to the Central Business District (CBD).

― 2 ―Through these efforts, the number of new homes sold in consolidated fiscal 2021 under review reached arecord high level of 1,386 (an increase of 45 homes year-on-year) due to the number of orders received exceeding
the level recorded in the previous year despite the preceding impact of weak orders mainly during the state of
emergency last year. However, profits decreased year-on-year partly due to a decline in the gross margin ratio
following the introduction of tighter inventory controls given the level of uncertainty concerning future prospects.
In existing-home sales, we have continued our efforts to expand the number of homes sold by enhancing
product inventory. In the first half of fiscal 2021, however, we were forced to drastically reduce the number ofpurchases made through auctions compared to the same period of the previous year due to events such as thesuspension of auction bidding arising from the spread of COVID-19. In the second half of fiscal 2021, while thenumber of purchases recovered to secure the same number of homes sold as the same period of the preceding year,
the adverse impact of the reduced inventory on sales remained, and the number of existing homes sold in fiscal
2021 ended March 31, 2021 was 137 (a fall of 14 year-on-year).
As a result of these initiatives, sales in the real estate sales segment during the fiscal year under review
increased 3.8% year-on-year to ¥44,115 million, while segment profit was ¥1,745 million, down 13.3% from theprevious fiscal year.
b. Construction Material Sales
In the construction material sales, the situation remains challenging even though the decrease in the number of
new housing starts for wooden houses has been slowing down. While wood material prices generally remained
low through to the end of the year, their domestic prices have been on a rising trend since the beginning of thisyear due partly to increases in the demand for homes in the U.S. and shipping freight.
Under these circumstances, the Grandy House Group took necessary measures focused on securing orders forconstruction materials and managing credit. Accordingly, while the volume of construction material sales
decreased year-on-year, profits rose significantly due mainly to an improvement in the gross margin ratio
resulting from a fall in raw-material prices.
As a result of these initiatives, sales in the construction material sales segment during the consolidated fiscal
year under review decreased 4.8% year-on-year to ¥2,642 million, while segment profit was ¥224 million, up
57.6% from the previous fiscal year.
c. Real Estate Leasing
In real estate leasing, tenants whose businesses had deteriorated either requested a reduction or exemption
from rent or went out of business due to the economic slowdown caused by the spread of COVID-19; thus, theoperation rate exhibited a worsening trend in both the office building and parking markets.
The Grandy House Group saw an increase in the number of properties leased year-on-year and prevented theoperation rate from deteriorating by providing support, including rent reductions and exemptions for leased
offices and the like. On the other hand, the Group continued to face a difficult situation despite the recovery of
the operation rate in parking lots and others, which had previously declined due to people's voluntary restraint on
going out.
As a result, sales in the real estate leasing segment during the fiscal year under review were ¥266 million, an
increase of 2.0% year-on-year. We had a segment profit of ¥153 million, a decrease of 10.7% year-on-year,
mainly due to an increase in repair expenses.
(2) Overview of Financial Position for Fiscal 2021
As of March 31, 2021, total consolidated assets rose to ¥58,113 million, an increase of ¥2,127 million
compared to the end of the previous consolidated fiscal year. This was primarily attributable to an increase in
cash and deposits by securing liquidity in hand to prepare for future uncertainty arising from events such as the
spread of COVID-19 as well as to the acquisition of housing lots to reflect the expanded real estate sales businessarea.
Liabilities increased to ¥34,820 million, an increase of ¥977 million from the end of the previous consolidated
fiscal year. This was mainly due to an increase in loans and bonds payable following the acquisition of housing
lots and having secured liquidity in hand.
Total net assets stood at ¥23,293 million as of March 31, 2021. This represents an increase of ¥1,150 million
from the balance recorded as of March 31, 2020. This was due to acquiring net income attributable to owners of
the parent despite the payment of dividends.
― 3 ―(3) Overview of Cash Flows for Fiscal 2021
Cash and cash equivalents (hereinafter, "cash flows") as of March 31, 2021 increased by ¥3,012 million
compared to the previous consolidated fiscal year, as a result of increased cash flows from operating activities
and decreased cash flows from investing and financing activities, to reach ¥13,349 million.
Factors contributing to movements in the Company's cash flows during the consolidated fiscal year underreview are presented as follows.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥3,481 million (a decrease of ¥2,546 million in theprevious fiscal year). This was mainly due to having acquired net income before income taxes despite payments
of income taxes.
(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to ¥410 million (a decrease of ¥2,520 million in the previous
fiscal year). This was mainly due to the construction of new branch buildings, the acquisition of parking lots forleasing, and other items.
(Cash Flows from Financing Activities)
Net cash provided by financing activities amounted to ¥58 million (an increase of ¥5,402 million in theprevious fiscal year). This was mainly due to payments of dividends despite the issuance of bonds and the like.
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 2019
44.7
27.5
6.7
12.3

Fiscal 2020
39.2
18.6
–
–

Fiscal 2021
39.8
24.3
8.3
12.4

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 for the fiscal year ended March 31, 2020 were negative, interest-bearing liabilities to cash flow ratio
and interest coverage ratio data have been omitted for the year.
4. Interest-bearing liabilities include all liabilities that bear interest under the liabilities section recorded on
consolidated balance sheets.
(4) Outlook for Fiscal 2022
The Japanese economy will be expected to remain in a difficult situation as the COVID-19 pandemic has nosign of settling down despite the start of vaccinations.
Under these circumstances, the Grandy House Group will continue to make efforts to grow its business andfurther improve its corporate value by creating a new management structure that actively utilizes IT technologies
and the like, while placing top priority on the safety of customers and the health of employees.
The Group’s consolidated financial forecast for the fiscal year ending March 31, 2022 is expected to be as
follows: Net sales of ¥52,400 million, operating income of ¥2,600 million, ordinary income of ¥2,400 million,
and net income attributable to owners of the parent of ¥1,600 million. Note: As the "Accounting Standard for
Revenue Recognition" (ASBJ Statement No. 29) and other standards will be applicable from the fiscal 2022, andthe consolidated financial forecast reflects figures after the application of such and other standards.

― 4 ―(5) Basic Policy concerning the Allocation of Profits and Dividends for Fiscal 2021 and Fiscal 2022
Grandy House focuses on increasing the corporate value and returning more profits to shareholders as one ofits priority management issues. For shareholders, we will follow a dividend policy that is based on businessperformance and work to enhance the policy while aiming for a consolidated dividend payout ratio of 30%.
Purchase of treasury shares will be made in a timely manner and in accordance with the Company's financial
position in order to enhance shareholder returns and capital efficiency.
The dividend per share for fiscal 2021 under review will be ¥24 (ordinary dividend of ¥14 andcommemorative dividend of ¥10) per share in accordance with the dividend forecast that we announced on
November 9, 2020. The annual dividend forecast for the year ending March 31, 2022 is ¥20 per share.
Grandy House stipulates the Articles of Incorporation allowing flexible payment of dividends of surplus
through a resolution by the Board of Directors. About the number of dividend payments, however, Grandy Houseplans to continue paying a single annual dividend to shareholders, as usual, with March 31 as the record date fordividends.

― 5 ―2. OVERVIEW OF THE CORPORATE GROUP
The Grandy House Group (Grandy House Corporation and its affiliates) consists of Grandy House Corporationand eight subsidiaries. The Group is mainly engaged in real estate sales, construction material sales, and real estateleasing.
The business operations of the Group and the positions of the Grandy House Corporation and its subsidiaries inthose 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 byGrandy House Corporation and its subsidiaries by trading area, from the perspective of promoting region-based
sales. General sales areas of each company are as follows:
Grandy House Corporation: Tochigi Prefecture, western part of Ibaraki Prefecture, and Saitama Prefecture
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
Plaza House Inc.: Kanagawa Prefecture
Welcome House Inc.: Kanagawa Prefecture
Furthermore, Chuko Jutaku Joho Kan Co., Ltd. is engaged in sales of existing homes and Grandy ReformCo., Ltd. is engaged 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, 2021)
The matters described above are shown in the following Business Group Organization Chart.

Grandy House Corporation
Supply of pre-cut materials, etc.

Sales of pre-cut
materials, etc.

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

General Livetech Co., Ltd.
Sales of existinghomes, etc.

Renovation

Sales of detachedhouses, etc.
(Kanagawa Prefecture)

After-sales maintenance

Chuko Jutaku Joho Kan Co., Ltd.

Grandy Reform Co., Ltd.

Plaza House Inc.
Welcome House Inc.

Entrustment of after-sales maintenance

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

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

Ibaraki Grandy House Co., Ltd.
Gunma Grandy House Co., Ltd.
Chiba 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 2020
(As of March 31, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Securities
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 2021
(As of March 31, 2021)

10,351,397
607,498–
16,799,116
7,198
13,899,184
238,209
113,833
1,039,355(4,934)

13,363,516
496,993
201,921
17,182,081
7,725
12,952,944
237,434
114,678
920,828(2,362)

43,050,859

45,475,762

5,593,578(2,174,587)

5,644,251(2,337,794)

Buildings and structures, net

3,418,991

3,306,457

Machinery, equipment and vehicles
Accumulated depreciation

126,568(82,712)104,070(74,945)

43,85529,124

366,090(310,140)

376,891(326,040)

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

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance costs
Total deferred assets
Total assets― 8 ―55,94950,851

6,002,977
189,864(84,792)

6,021,604
171,750(97,359)

105,071

74,3908,411

150,319

9,635,258

9,632,747

1,302,697
102,366

1,165,571
67,192

1,405,064

1,232,763

329,226
35,914457,977
1,045,367(9,148)145,500
18,993507,147
1,067,323(4,272)

1,859,337

1,734,690

12,899,659

12,600,201

35,59338,02535,59338,02555,986,112

58,113,989

(Thousands of Yen)
Fiscal 2020
(As of March 31, 2020)

Fiscal 2021
(As of March 31, 2021)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,249,367

3,255,232

Short-term loans payable

22,218,600

20,696,600

Current portion of long-term loans payable

695,958

1,014,044

Current portion of bonds

21,00021,000

Lease obligations

37,32330,980

Income taxes payable

367,350

399,719

Provision for warranties for completed construction

70,872

95,953

Other691,928

955,601

27,352,399

26,469,131

Bonds payable

1,824,000

2,303,000

Long-term loans payable

3,597,965

4,904,321

Total current liabilities
Non-current liabilities

Lease obligations

77,60350,559Provision for directors' retirement benefits

203,579

218,520

Net defined benefit liability

720,938

810,289

Other
Total non-current liabilities
Total liabilities

66,50064,8786,490,585

8,351,569

33,842,985

34,820,700

2,077,500

2,077,500

Net assets
Shareholders' equity
Capital stock
Capital surplus

2,291,248

2,343,929

Retained earnings

17,905,056

18,969,090

Treasury shares(301,297)(270,372)

21,972,507

23,120,148–

20,500Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets

― 9 ―

–

20,500170,620

152,640

22,143,127

23,293,288

55,986,112

58,113,989

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Thousands of Yen)
Fiscal 2020
(From April 1, 2019 toMarch 31, 2020)

Fiscal 2021
(From April 1, 2020 toMarch 31, 2021)

Net sales

45,541,961

47,024,984

Cost of sales

37,756,807

39,202,154

Gross profit

7,785,154

7,822,829

Selling, general and administrative expenses

5,643,006

5,863,842

Operating income

2,142,147

1,958,986

Interest income

1,409

1,516

Dividends income

5,722

5,653

Operations consignment fee

226,634

222,067

Office work fee

157,004

156,645

Insurance claim income

50,400

3,807

Other

27,25065,819Total non-operating income

468,422455,509

Non-operating income

Non-operating expenses
256,315

281,191

Commission for syndicate loan

8,469

9,966

Other

34,986

16,708Interest expenses

Total non-operating expenses
Ordinary income

299,771

307,866

2,310,798

2,106,629

Extraordinary income
Gain on sales of non-current assets

–

5,623

Consumption taxes refund–

707,744

Total extraordinary income–

713,368

Loss on sales of non-current assets

1,143

–

Loss on retirement of non-current assets

13,151

26,905Extraordinary loss

9,460

2,254

Loss on valuation of investment securities

100,000–

Loss on disaster

27,767–

Impairment loss–

122,561

Total extraordinary loss

151,521

151,721

Net income before income taxes

2,159,276

2,668,276

770,234

762,477–

222,919(24,072)(49,781)

Loss on cancellation of lease contracts

Income taxes – current
Income taxes for prior periods
Income taxes – deferred

746,162

935,614

Net income

1,413,114

1,732,661

Net income attributable to owners of the parent

1,413,114

1,732,661

Total income taxes― 10 ―

(Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Fiscal 2020
(From April 1, 2019 toMarch 31, 2020)
Net income

Fiscal 2021
(From April 1, 2020 toMarch 31, 2021)

1,413,114

1,732,661

47,63420,500

Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income

47,63420,5001,460,749

1,753,161

1,460,749

1,753,161––

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 2020 (From April 1, 2019 to March 31, 2020)

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
Exercise of subscription rights to shares
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
Exercise of subscription rights to shares
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
equity2,228,898
17,011,385(337,899)
20,979,883(519,443)
1,413,114
36,601(519,443)
1,413,114
98,952

893,671
17,905,056

36,601(301,297)

992,623
21,972,507

Subscription
rights to shares

Total net assets

191,900

21,124,148(21,280)(519,443)
1,413,114
77,67262,350–2,077,500

62,3502,291,248

Accumulated othercomprehensive income
Valuation
Total
difference on
accumulated
availableotherfor-salecomprehensive
securities
income(47,634)(47,634)

47,63447,63447,634–47,634–― 12 ―

47,634(21,280)
170,620

1,018,97822,143,127

Fiscal 2021 (From April 1, 2020 to March 31, 2021)

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
Exercise of subscription rights to shares
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
Exercise of subscription rights to shares
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
equity2,291,248
17,905,056(301,297)
21,972,507(668,627)
1,732,661
30,925(668,627)
1,732,661
83,607

1,064,034
18,969,090

30,925(270,372)

1,147,641
23,120,148

Subscription
rights to shares

Total net assets

170,620

22,143,127(17,980)(668,627)
1,732,661
65,627

52,681–
2,077,500

52,681
2,343,929

Accumulated othercomprehensive income
Valuation
Total
difference on
accumulated
availableotherfor-salecomprehensive
securities
income––20,50020,50020,50020,50020,50020,500― 13 ―

20,500(17,980)
152,640

1,150,161
23,293,288

(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
Impairment loss
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 net defined benefit liability
Interest and dividends income
Interest expenses
Loss (gain) on sales of property, plant and equipment
Loss on retirement of non-current assets
Loss (gain) on valuation of investment securities
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
Purchase of shares in subsidiaries resulting from a change inthe scope of consolidation
Loan advances
Collection of loans receivable
Payments for guarantee deposits
Proceeds from collection of 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 ofsubscription 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― 14 ―

Fiscal 2020
(From April 1, 2019 toMarch 31, 2020)

Fiscal 2021
(From April 1, 2020 toMarch 31, 2021)

2,159,276
267,613
68,563–

2,668,276
284,114137,126
122,561

34,924

14,941(15,382)

25,081

8,116
90,965(7,131)
256,315
1,143
13,151
100,000(59,800)(3,955,431)(60,075)(226,760)(1,324,512)
8,532(269,978)(960,683)(2,546,641)(7,447)89,351(7,169)281,191(5,623)
26,905–
115,295
562,678
5,865
387,649
4,700,799
7,237(281,327)(945,366)
3,481,342(570,378)
8,779(33,279)(365,667)
7,437(32,246)(1,881,900)–(18,000)
39,955(66,096)226(0)(2,520,694)–
21,421(43,500)–
2,192(410,362)

2,689,150
3,650,000(740,883)
300,000(21,000)(1,522,000)
2,519,000(894,558)
500,000(21,000)

77,672

65,627(519,435)(33,004)
5,402,500
335,163
10,001,725
10,336,889(668,506)(37,424)(58,861)
3,012,118
10,336,889
13,349,007

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Additional Information)(Accounting Estimates concerning the Impact of COVID-19)
The Group makes its accounting estimates based on the information available as of the date of theconsolidated financial statements. At present, the COVID-19 outbreak has had a limited impact on the Group's
financial results and we assume that economic activities will gradually return to normal.
In the case, however, that the impact of the COVID-19 outbreak becomes more serious, it may affect our
financial position and operating results for the next consolidated fiscal year onward.

― 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, homerenovation, 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 by subsidiaries.
From the perspective of similarity, relationships, and sharing of common management resources, these threebusinesses are regarded as one business segment, Real Estate Sales. The Company devises overall strategies forthis 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 byreportable segment
Fiscal 2020 (From April 1, 2019 to March 31, 2020)(Thousands of Yen)
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

42,505,118

2,775,626

261,216–

3,118,577

85,386

Adjustments(Note 1)

AmountReported on
Consolidated
Financial
Statements(Note 2)45,541,961–

45,541,961

3,203,964(3,203,964)

–

Total

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

42,505,118

5,894,204

346,60248,745,925(3,203,964)

45,541,961

Segment profit

Total

2,013,639

142,588

172,187

2,328,414(17,616)

2,310,798

Segment assets

41,950,386

2,140,471

4,063,879

48,154,737

7,831,374

55,986,112

Segment liabilities

32,100,985

1,642,918

446,253

34,190,157(347,171)

33,842,985

Depreciation and amortization

193,060

29,48045,072

267,613–

267,613

Amortization of goodwill

68,563––68,563–68,563

Other items

Interest income

1,405

3

–

1,409

–

1,409

Interest expenses

248,849

7,024

441

256,315–

256,315

Increase in property, plant and equipment
and intangible assets

347,751

37,304

302,945

688,000–

688,000― 16 ―

Fiscal 2021 (From April 1, 2020 to March 31, 2021)(Thousands of Yen)
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

44,115,608

2,642,889

266,486–

2,948,484

80,653Adjustments(Note 1)

AmountReported on
Consolidated
Financial
Statements(Note 2)47,024,984–

47,024,984

3,029,138(3,029,138)

–

Total

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

44,115,608

5,591,374

347,139

50,054,122(3,029,138)

47,024,984

Segment profit

Total

1,745,101

224,682

153,686

2,123,470(16,840)

2,106,629

Segment assets

41,794,010

2,114,346

4,045,500

47,953,858

10,160,130

58,113,989

Segment liabilities

33,212,504

1,568,159

423,722

35,204,386(383,685)

34,820,700

Depreciation and amortization

207,374

24,46652,273

284,114–284,114

Amortization of goodwill

137,126––

137,126–

137,126

Other items

Interest income

1,513

2

–

1,516

–

1,516

Interest expenses

274,336

5,992

862

281,191–

281,191

2,055

169,543

380,492–

380,492

Increase in property, plant and equipment
208,893and intangible assets
Note 1: Details of adjustments are presented as follows.

Segment profit(Thousands of Yen)
Fiscal 2020
Eliminations of inter-segment transactions
Total

Fiscal 2021
(17,616)(16,840)(17,616)(16,840)

Segment assets(Thousands of Yen)
Fiscal 2020

Fiscal 2021

Eliminations of inter-segment receivables(345,365)(378,876)

Eliminations of inter-segment unrealized profit(56,859)(64,534)

8,233,599

10,603,541

7,831,374

10,160,130

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 2020
Eliminations of inter-segment payables
Total

Fiscal 2021
(347,171)(383,685)(347,171)(383,685)

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

― 17 ―