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 Reportfor the Second Quarter of Fiscal 2014 Ending March 31, 2014 (Japanese GAAP)
November 5, 2013
Company Name:Grandy House Corporation
Stock Exchange Listing:Tokyo Stock Exchange
Securities Code:8999
URL
http://www.grandy.co.jp
Representative:
Hiroyuki Murata, President
Inquiries:
Atsuo Saito, Senior Managing Director
TEL: +81-28-650-7777
Scheduled date of quarterly securities report filing:
November 8, 2013―
Scheduled date of dividend payment commencement:
None
Preparation of quarterly supplementary explanatory materials:
Yes (institutional investors)
Quarterly results briefing meeting held:(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2014
(April 1, 2013 to September 30, 2013)(Percentage figures show the year-on-year increase (decrease).)(1) Consolidated Operating Results
Net Sales(¥ million)
Six months ended
September 30, 2013
Six months ended
September 30, 2012

Operating Income(¥ million)%%

Ordinary Income(¥ million)%

Net Income(¥ million)%

18,423

13.5

1,453

24.1

1,510

26.3

923

37.3

16,226

6.9

1,170

42.7

1,196

43.3

672

45.6

Note: Comprehensive Income Six months ended September 30, 2013: ¥923 million (37.3%) Six months ended September 30, 2012: ¥672 million (45.6%)

Net Income per Share(¥)
Six months ended
September 30, 2013
Six months ended
September 30, 2012

Net Income per Share(Diluted)
(¥)

32.09

―

23.37

―

Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split. Net income per share is calculated on the assumption that stock split was
conducted at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total Assets(¥ million)
September 30, 2013
March 31, 2013

Net Assets(¥ million)
32,21930,118

Shareholders’ Equity Ratio%
12,80339.7
12,11040.2

Net Assets per Share(¥)
444.94420.84

Reference: Shareholders’ equity September 30, 2013: ¥12,803 million March 31, 2013: ¥12,110 million
Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split. Net assets per share are calculated on the assumption that stock split was
conducted at the beginning of the previous fiscal year.

2. Dividends
Annual Dividend per Shares
1Q-End2Q-End(¥)
Fiscal 2013
Fiscal 2014
Fiscal 2014 (Forecast)

3Q-End

(¥)
―
―

(¥)
0.00
0.00

Note: Revisions to the most recently announced forecast of cash dividends in the current quarter: None
Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split.

Period-End

Total

(¥)

(¥)

―

24.00

24.00

―

8.00

8.00

3. Consolidated Financial Forecasts for Fiscal 2014 (April 1, 2013 to March 31, 2014)

Full Fiscal YearNet Sales(¥ million)%
37,00013.7(Percentage figures show the year-on-year increase (decrease) for each corresponding period.)
Operating Income
Ordinary Income
Net Income
Net Income per Share(¥ million)%(¥ million)%(¥ million)
%
(¥)
2,900
25.2
3,000
25.4
1,680
23.4
58.38

Note: Revisions to the most recently announced financial forecasts in the current quarter: None
Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split.

* Explanatory Notes(1) Changes in significant subsidiaries during the term(changes in specified subsidiaries resulting in a change in the scope of consolidation): None
Newly included: ―Excluded: ―(2) Adoption of specific accounting methods for preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatement of revisions
1) Changes in accounting policies in connection with revision to accounting standards, etc.:
2) Changes in accounting policies other than 1) :3) Changes in accounting estimates:
4) Restatements of revisions:(4) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding as of the September 30,
period-end (including treasury stock)20132) Number of treasury stock
September 30,
20133) Average number of shares issued and outstanding for Six months ended
the period
September 30,
2013

None
None
None
None

30,823,200 shares March 31, 201330,823,200 shares

2,046,198 shares March 31, 2013

2,046,198 shares

Six months ended
28,777,002 shares September 30,
2012

28,777,098 shares

Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split. Number of shares issued and outstanding (common stock) is
calculated on the assumption that stock split was conducted at the beginning of the previous fiscal year.

* Disclosure concerning the implementation status of quarterly review proceduresThis quarterly financial report is exempt from the quarterly review procedure provisions stipulated under the Financial Instruments and Exchange
Act of Japan. As of the date of disclosure, quarterly review procedures in connection with quarterly consolidated financial statements were in
progress.
* Explanation concerning the appropriate use of financial 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 ............................................ 4
2. MATTERS CONCERNING SUMMARY INFORMATION (Notes)...................................................................... 4(1) Changes in Significant Subsidiaries during the Term ............................................................................................. 4(2) Adoption of Specific Accounting Methods for Preparation of the Quarterly Consolidated Financial Statements.. 4(3) Changes in Accounting Policies, Accounting Estimates and Restatement of Revisions......................................... 4
3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS ......................................................................... 5(1) Quarterly Consolidated Balance Sheets .................................................................................................................. 5(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............. 7(Quarterly Consolidated Statements of Income) ......................................................................................................... 7(Quarterly Consolidated Statements of Comprehensive Income) ............................................................................... 8(3) Consolidated Statements of Cash Flows ................................................................................................................. 9(4) Notes to Quarterly Consolidated Financial Statements ......................................................................................... 10(Notes on Going Concern Assumptions) .................................................................................................................. 10(Notes on Significant Changes in the Amount of Shareholders’ Equity) ................................................................. 10(Segment and Other Information) ............................................................................................................................. 10―1―

1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
In the first half, the six-month period from April 1, 2013 to September 30, 2013, of fiscal 2014, the fiscal year ending
March 31, 2014, the Japanese economy exhibited signs of a modest economic recovery. Amid expectations toward thegovernment’s economic policies, large-scale monetary easing measures by the Bank of Japan, and other factors, trends
in personal consumption were firm with indications of an improvement in corporate-sector earnings and capital
investment.
In the housing sector, new housing starts were positive for 12 consecutive months on a year-on-year basis for the
12-month period to August 2013 and continued to hover at a high level. In addition to reconstruction demandfollowing the Great East Japan Earthquake, the surge in demand in the lead up to the planned increase in the
consumption tax rate as well as growing consumer expectations toward a rise in housing loan interest rates served todrive up construction work.
Under these circumstances, Grandy House is working diligently to strengthen its housing land development site
procurement capabilities and to expand its sales and marketing areas while increasing its market share in each area asa part of the medium-term target of further bolstering its core real estate sales business. Amid the record-breaking
summer heat, which placed a brake on the number of visits to housing lots earmarked for sale, the Company continued
to receive a robust stream of orders on the back of a variety of promotional events including a summer campaign.
Moreover, activities by Chiba Grandy House (Kashiwa City, Chiba Prefecture), which commenced sales andmarketing from April 2013, got off to a favorable start. Among a host of achievements, the company was successful inselling all of its properties prior to their completion at certain lots.
As a result of these factors, consolidated net sales in the first half of fiscal 2014 were ¥18,423 million, up 13.5%
compared with the corresponding period of the previous fiscal year. Operating income was ¥1,453 million, up 24.1%,
ordinary income was ¥1,510 million, up 26.3%, and net income was ¥923 million, up 37.3% compared with thecorresponding period of the previous fiscal year.

Results by business segment are presented as follows.
Real Estate Sales
In new home sales, Grandy House took steps to strengthen its housing land development department while focusing on
securing attractive development sites for sale in each area. Turning to sales for the period under review, orders
received were strong for such projects as Tsukuba City Katsuragi (covering 68 blocks in Tsukuba City, Ibaraki
Prefecture), where sales were newly commenced, and Utsunomiya Technopolis (covering 29 blocks in Utsunomiya
City, Tochigi Prefecture). In Chiba Prefecture, which has been designated a priority area during the fiscal year ending
March 31, 2014, the Company worked diligently to enhance its information collection capabilities pertaining to the
procurement of housing land development sites that are attractive to customers. Grandy House has enjoyed a solid
start as it works toward substantially expanding sales in Chiba Prefecture. The Company, for example, was successful
in selling all of its properties prior to their completion at such development projects as Gran Fine Minamikashiwa
Stage 4 (covering 14 blocks in Nagareyama City, Chiba Prefecture). As a result, the number of new homes sold in thefirst half of fiscal 2014 was 572, up 89 homes compared with the corresponding period of the previous fiscal year.
Amid a prolonged slump in the number of properties available in the market, existing home sales were impacted byintense market competition triggering difficulties in procuring a sufficient number of properties. This in turn affected
the Company’s lineup of properties for sale, which led to a slowdown in sales. The number of the Company’s existinghomes sold during the first half of fiscal 2014 was 69, down 28 homes compared with the corresponding period of theprevious fiscal year.
As a result of the aforementioned factors, revenues in the real estate sales segment in the first half of fiscal 2014
were ¥17,088 million, up 13.5% compared with the corresponding period of the previous fiscal year. Segment profit
was ¥1,414 million, up 35.1% compared with the corresponding period of the previous fiscal year.

Construction Material Sales
In the construction material sales segment, the procurement prices of laminated lumber materials and plywood
hovered at a high level. As a result, Grandy House undertook negotiations to pass along a portion of these costs to
product sales prices. In addition, the Company made every effort to reduce costs through production enhancements.
To this end, energies were directed toward increasing the volume of orders received by engaging in such endeavors
as the introduction of facilities and equipment compatible with metal joint construction methods in a bid to attract
orders from new customers employing these methods, and the implementation of initiatives aimed at broadening
sales routes in the southern region of the Tohoku District and other areas.
―2―

As a result of the aforementioned factors, revenues in the construction material sales segment in the first half offiscal 2014 were ¥1,204 million, up 23.7% compared with the corresponding period of the previous fiscal year. Due tothe increase in material costs and delays in passing on these increases to sales prices, segment profit was ¥52 million,
down 25.2% compared with the corresponding period of the previous fiscal year.

Real Estate Leasing
In the real estate leasing segment, there were no new acquisitions or sales of real estate for leasing comprising land andbuildings, and every effort was made to increase the ratio of existing real estate for leasing thereby reducing vacancy
rates while curtailing overhead expenses. Revenues in the real estate leasing segment in the first half of fiscal 2014
were ¥130 million, down 33.4% compared with the corresponding period of the previous fiscal year. This largely
reflected the transfer of real estate (¥64 million of revenues in the corresponding period of the previous fiscal year)
temporarily used for leasing purposes in the previous fiscal year to its originally planned use of site for sale (Moka
Oyadai New Town). Segment profit was ¥71 million, down 42.1% compared with the corresponding period of theprevious fiscal year. As a result, the Company recorded a decline in revenues and earnings in the real estate leasing
segment.

(2) Explanation regarding Financial Position
a. Balance Sheet
Total assets stood at ¥32,219 million as of September 30, 2013, up ¥2,101 million compared with the end of theprevious fiscal year. Amid persistently strong new housing sales, the major factor was the increase in current assets of¥2,083 million. This included an increase in the balance of real estate for sale following the acquisition anddevelopment of sites.
Total liabilities stood at ¥19,415 million as of September 30, 2013, up ¥1,408 million compared with the end of
the previous fiscal year. Again, amid persistently strong new housing sales, the principal reason for the increase inliabilities was the increase in short-term loans payable as project funding for the acquisition and development of sites.
Total net assets stood at ¥12,803 million as of September 30, 2013, up ¥693 million compared with the end of theprevious fiscal year. This was largely attributable to the increase in retained earnings and also reflected the payment ofdividends to shareholders totaling ¥230 million and the net income in the first half of the fiscal year of ¥923 million.

b. Cash Flows
Cash flows from operating and investing activities resulted in decreases in cash and cash equivalents respectively, andcash flows from financing activities resulted in an increase in cash and cash equivalents in the first half of the fiscal
year under review. As a result, the balance of cash and cash equivalents at end of the period amounted to ¥5,197
million, down ¥10 million from March 31, 2013.
Factors contributing to movements in the Company’s cash flows during the first half of the fiscal year arepresented as follows.
(Cash Flows from Operating Activities)
Net cash used in operating activities amounted to ¥725 million in the first half of the fiscal year, up ¥608 million
compared with the corresponding period of the previous fiscal year. Major cash inflows mainly comprised net income
before income taxes and the increase in notes and accounts payable-trade including construction payments. Inflows
were more than offset, however, by such outflows as the increase in inventories representing the purchase of land forsale.
(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to ¥109 million in the first half of the fiscal year, up ¥31 million
compared with the corresponding period of the previous fiscal year. This outflow was largely attributable to thelodgment of deposit assets as a measure to secure funding resources in accordance with provisions stipulated underJapan’s Act on Assurance of Performance of Specified Housing Defect Warranty.
(Cash Flows from Financing Activities)
Net cash provided by financing activities was ¥824 million in the first half of the fiscal year, up ¥246 million
compared with the corresponding period of the previous fiscal year. The principal factor was the net increase in
short-term loans payable to fund the acquisition and development of sites for sale.

―3―(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There is no change to financial forecasts announced on October 28, 2013.
2. MATTERS CONCERNING SUMMARY INFORMATION (Notes)(1) Changes in Significant Subsidiaries during the Term
Not applicable.

(2) Adoption of Specific Accounting Methods for Preparation of the Quarterly Consolidated Financial Statements
Not applicable.

(3) Changes in Accounting Policies, Accounting Estimates and Restatement of Revisions
Not applicable.

―4―3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2013(As of March 31, 2013)

Second Quarter of FY2014(As of September 30, 2013)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade

5,218,245
394,082

5,205,142
503,066

Real estate for sale
Costs on uncompleted construction contracts

6,171,787
10,1599,358,007
10,810Real estate for sale in process
Merchandise and finished goods

7,404,313
252,665

6,302,705
175,499

Raw materials and supplies
Deferred tax assets

113,328
124,336

104,989
111,633

Other
Allowance for doubtful accounts

256,258(2,788)257,158(3,466)

19,942,389

22,025,547

Buildings and structures, net
Machinery, equipment and vehicles, net

3,339,538
4,543

3,275,348
14,052Tools, furniture and fixtures, net
Land44,9895,915,880

41,2795,915,880

154,738－

152,891
8,958

9,459,690

9,408,410

64,062

66,599Investment securities
Long-term loans receivable

514,882
29,987514,895
32,476

Deferred tax assets
Other86,29557,24589,769118,065

Allowance for doubtful accounts(36,283)(36,129)

Total current assets
Noncurrent assets
Property, plant and equipment

Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets

Total investments and other assets
Total noncurrent assets
Total assets―5―652,127

719,076

10,175,880

10,194,086

30,118,269

32,219,633

(Thousands of Yen)FY2013(As of March 31, 2013)

Second Quarter of FY2014(As of September 30, 2013)

Liabilities
Current liabilities
Accounts payable for construction contracts
Short-term loans payable

2,299,933
11,639,900

2,675,306
12,991,200

Current portion of long-term loans payable
Lease obligations

482,61249,630416,655
49,703

Income taxes payable
Provision for warranties for completed construction

579,31355,433507,188
56,372

Other
Total current liabilities

644,494

638,672

15,751,317

17,335,098

1,828,171
123,134

1,621,948
118,249

221,276
17,241

250,250
30,441

Noncurrent liabilities
Long-term loans payable
Lease obligations
Provision for retirement benefits
Provision for directors’ retirement benefits
Other

66,49359,6782,256,316

2,080,568

18,007,633

19,415,666

Shareholders’ equity
Capital stock

2,077,500

2,077,500

Capital surplus
Retained earnings

2,205,165
8,179,785

2,205,165
8,873,116

Treasury stock(351,814)(351,814)

Total shareholders’ equity

12,110,636

12,803,966

Total noncurrent liabilities
Total liabilities
Net assets

Total net assets
Total liabilities and net assets―6―

12,110,636

12,803,966

30,118,269

32,219,633

(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of Yen)
Six months ended September 30, Six months ended September 30,
2012 (From April 1, 2012
to September 30, 2012)
Net sales
Cost of sales

16,226,300
13,186,2412013 (From April 1, 2013
to September 30, 2013)
18,423,861
14,909,209

Gross profit

3,040,058

3,514,652

Selling, general and administrative expenses

1,869,401

2,061,480

Operating income

1,170,657

1,453,172

425
139

715
138

Operations consignment fee
Office work fee

80,25967,88998,41974,252

Other

15,803

12,341

Total non-operating income

164,517

185,867

106,375
32,198

128,550－

Non-operating income
Interest income
Dividends income

Non-operating expenses
Interest expenses
Commission for syndicate loan
Other
Total non-operating expenses
Ordinary income

520－

139,094

128,550

1,196,080

1,510,489

12,23525,571

6,817－

Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Total extraordinary loss

37,806

6,817

Net income before income taxes

1,158,273

1,503,671

Income taxes-current

476,229

570,895

Income taxes-deferred

9,454

9,229

Total income taxes

485,683

580,124

Income before minority interests

672,590923,546

Net income

672,590923,546―7―

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Six months ended September 30, Six months ended September 30,
2012 (From April 1, 20122013 (From April 1, 2013
to September 30, 2012)

to September 30, 2013)

Income before minority interests

672,590923,546

Comprehensive income

672,590923,546

Comprehensive income attributable to:Comprehensive income attributable to owners of the parent

672,590923,546－－

Comprehensive income attributable to minority interests―8―(3) Consolidated Statements of Cash Flows(Thousands of Yen)
Six months ended September 30, Six months ended September 30,
2012 (From April 1, 20122013 (From April 1, 2013
to September 30, 2012)
to September 30, 2013)
Net cash provided by (used in) operating activities
Net income before income taxes
Depreciation and amortization
Increase (decrease) in provision for retirement
benefits
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in allowance for doubtful
accounts
Interest and dividends income
Interest expenses
Impairment loss
Loss on retirement of noncurrent 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

1,158,273

1,503,671

108,257

113,374

20,36928,974

5,975

13,200

290

938

(195)

524

(565)

(854)

106,375
25,571

128,550－

12,235

6,817(48,911)(108,983)(1,298,639)(1,999,758)

447,964

375,372(39,329)1,465

497,671

63,294565

854Interest expenses paid
Income taxes paid

(106,022)(509,679)(145,933)(643,766)

Net cash provided by (used in) operating activities(117,464)(725,550)

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment(89,962)(38,018)

Purchase of intangible assets
Payments of loans receivable(1,053)－(11,890)(4,400)

Collection of loans receivable
Payments for guarantee deposits

3,019
(20)

2,725
(60,612)

Other payments
Other proceeds(9,000)19,673(9,630)12,633

Net cash provided by (used in) investing activities(77,342)(109,192)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

902,630

1,351,300

Proceeds from long-term loans payable
Repayment of long-term loans payable

750,000(765,962)－(272,180)

Purchase of treasury stock
Cash dividends paid

(33)
(286,538)－(229,549)

Repayments of lease obligations(22,652)(25,430)

Net cash provided by (used in) financing activities

577,442824,140

Net increase (decrease) in cash and cash equivalents

382,635(10,602)

Cash and cash equivalents at beginning of the period

5,418,522

5,207,745

Cash and cash equivalents at end of the period

5,801,157

5,197,142―9―

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.

(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable.

(Segment and Other Information)
I. The first half of the fiscal year ended March 31, 2013 (April 1, 2012 to September 30, 2012)
1. Information relating to the amounts of net sales, profit and loss by reportable segment(Thousands of Yen)
Reportable Segment
Adjustments(Note 1)

AmountRecorded on
Consolidated
Statements ofIncome(Note 2)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Net sales
Sales to outside customers
Intersegment sales and transfers

15,056,779－

973,574
1,098,260

195,945
29,677

16,226,300
1,127,938－(1,127,938)

16,226,300
－

Total

15,056,779

2,071,835

225,623

17,354,238(1,127,938)

16,226,300

Segment profit

1,046,684

69,601

123,961

1,240,247(44,167)

1,196,080

Total

Notes: 1. Adjustments of segment profit (¥44,167 thousand) are eliminations of intersegment transactions.
2. Segment income has been adjusted to ordinary income described in quarterly consolidated statements of income.

2. Information concerning impairment losses on noncurrent assets, goodwill, and other items by reportablesegment(Material impairment losses on noncurrent assets)
In the real estate sales business, Grandy House recorded an impairment loss. This impairment loss
represented the write-down of the relevant asset group to the recoverable amount in accordance with thechange in classification from business assets to assets for sale. The amount of impairment loss was ¥25,571
thousand for the first half of the fiscal year under review.
(Material changes in the amount of goodwill)
Not applicable.
(Gain on negative goodwill of a material nature)
Not applicable.

―10―II. The first half of the fiscal year ending March 31, 2014 (April 1, 2013 to September 30, 2013)
1. Information relating to the amounts of net sales, profit and loss by reportable segment(Thousands of Yen)
Reportable Segment
Adjustments(Note 1)

AmountRecorded on
Consolidated
Statements ofIncome(Note 2)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Net sales
Sales to outside customers
Intersegment sales and transfers

17,088,602－

1,204,755
1,372,777

130,503
40,677

18,423,861
1,413,455－(1,413,455)

18,423,861
－

Total

17,088,602

2,577,533

171,180

19,837,316(1,413,455)

18,423,861

Segment profit

1,414,086

52,076

71,766

1,537,929(27,440)

1,510,489

Total

Notes: 1. Adjustments of segment profit (¥27,440 thousand) are eliminations of intersegment transactions.
2. Segment income has been adjusted to ordinary income described in quarterly consolidated statements of income.

2. Information concerning impairment losses on noncurrent assets, goodwill, and other items by reportablesegment
Not applicable.

―11―