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 FISCAL 2014
(The Fiscal Year Ended March 31, 2014 under Japanese GAAP)May 7, 2014
Company Name:Grandy House Corporation
Stock Exchange Listing:Tokyo Stock Exchange
Securities Code:8999
URL
http://grandy.co.jp
Representative:
Hiroyuki Murata, President
Inquiries:
Atsuo Saito, Senior Managing Director
TEL: +81-28-650-7777
Scheduled date of the Ordinary General Meeting of Shareholders:June 27, 2014
Scheduled date of Securities Report filing:
June 27, 2014
Scheduled date of dividend payment commencement:
June 30, 2014
Preparation of annual supplementary explanatory materials:
No
Annual results briefing held:
Yes (For analysts)(Figures are rounded down to the nearest million yen unless otherwise stated)

1. Consolidated Financial Results for Fiscal 2014 (April 1, 2013 to March 31, 2014)(Percentage figures show the year-on-year increase (decrease))(1) Consolidated Operating Results
Fiscal 2014
Fiscal 2013

Net Sales(¥ million)
37,25932,540Note: Comprehensive Income

Operating Income(¥ million)
%
2,932
26.5
2,317
38.2

%
14.5
10.9

Ordinary Income(¥ million)
%
3,034
26.8
2,392
39.8

Net Income(¥ million)
%
1,762
29.5
1,361
44.6

Fiscal 2014: ¥1,775 million (30.4%) Fiscal 2013: ¥1,361 million (44.6%)

Net Income per Share(¥)
Fiscal 2014
Fiscal 2013

61.25
47.31

Net Income per Share(Diluted)(¥)――

Return on Equity
%
13.7
11.8

Ordinary Income /Total Assets
%
9.5
8.6

Operating Income /Net Sales
%
7.9
7.1

(Reference) Equity in earnings of affiliates Fiscal 2014: ¥― million Fiscal 2013: ¥― million
Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split. Net income per share was calculated on the assumption that the stock
split took place at the beginning of the previous consolidated fiscal year.

(2) Consolidated Financial Position
Total Assets(¥ million)
March 31, 2014
March 31, 2013

Net Assets(¥ million)
33,524
30,11813,655
12,110Shareholders’ Equity Ratio
%
40.7
40.2

Net Assets per Share(¥)
474.53420.84(Reference) Shareholders’ equity March 31, 2014: ¥13,655 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 were calculated on the assumption that the stock
split took place at the beginning of the previous consolidated fiscal year.

(3) Consolidated Cash Flows

Fiscal 2014
Fiscal 2013

Cash Flows from Operating Cash Flows from Investing Cash Flows from Financing Cash and Cash Equivalents at
Activities
Activities
Activities
the End of the Period(¥ million)(¥ million)(¥ million)(¥ million)
(185)
(454)
987
5,554
(2,099)
(866)
2,754
5,207

2. Dividends
Annual Dividend per SharesFiscal 2013
Fiscal 2014
Fiscal 2015 (Forecast)

1Q-End2Q-End3Q-EndPeriod-End

Total

(¥)

(¥)
0.00
0.00
0.00

(¥)

(¥)
24.00
8.00
8.00

(¥)
24.00
8.00
8.00

―
―
―

―
―
―

Total Dividends(¥ million)
230
230

Ratio of Dividends
to Net Assets(Consolidated)
%
16.9
1.9
13.1
1.7
―

Payout Ratio(Consolidated)%

Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split. The total dividends data for Fiscal 2013 is the actual amount prior tothe common stock split.

3. Consolidated Financial Results Forecasts for Fiscal 2015 (April 1, 2014 to March 31, 2015)

Interim Period
Full Fiscal Year

(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)
%
(¥)
1,470
1.2
1,520
0.6
940
1.8
32.66
3,050
4.0
3,150
3.8
1,880
6.7
65.33

Net Sales(¥ million)%
19,0003.1
40,000
7.4* Explanatory Notes(1) Changes in the number of important subsidiaries during the period(changes in specified subsidiaries resulting in a change in the scope of consolidation): None
Newly included: ―Excluded: ―(2) 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 :(3) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding as of the
March 31, 2014
period-end (including treasury stock)2) Number of treasury stock
March 31, 2014
3) Average number of shares issued and outstanding for
Fiscal 2014
the period

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

28,777,002 shares Fiscal 2013

28,777,050 shares

Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split. The number of shares issued and outstanding as of the period-end(including treasury stock), number of treasury stock as of the period-end, and average number of shares issued and outstanding for the period data
were calculated on the assumption that the stock split took place at the beginning of the previous consolidated fiscal year.

(Reference) Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for Fiscal 2014 (April 1, 2013 to March 31, 2014)(1) Non-Consolidated Operating Results
Net Sales(¥ million)
Fiscal 2014
19,603Fiscal 2013
17,628

Fiscal 2014
Fiscal 2013

%
11.2
12.1

Operating Income(¥ million)
%
1,565
31.6
1,190
35.6

(Percentage figures show the year-on-year increase (decrease))
Ordinary Income
Net Income(¥ million)%(¥ million)
%
2,048
34.5
1,309
32.3
1,522
35.6
989
42.2

Net Income per Share (Diluted)
Net Income per Share
(¥)
(¥)
45.49
―
34.39
―

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

(2) Non-Consolidated Financial Position
Total Assets
Net Assets
Shareholders’ Equity Ratio(¥ million)(¥ million)%
March 31, 2014
20,399
11,631
57.0
March 31, 2013
20,08910,54052.5(Reference) Shareholders’ equity
March 31, 2014: ¥11,631 million
March 31, 2013: ¥10,540 million

Net Assets per Share(¥)
404.20366.27

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

2. Non-Consolidated Financial Results Forecasts for Fiscal 2015 (April 1, 2014 to March 31, 2015)

Interim Period
Full Fiscal YearNet Sales(¥ million)%
10,000(3.6)
20,300
3.6(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)
%
(¥)
810
(9.8)
1,450
7.8
1,100
11.8
38.22
1,580
0.9
2,280
11.3
1,550
18.4
53.86

* Disclosure concerning the implementation status of audit proceduresThis Consolidated Financial Report is not subject to the audit procedures required by the Financial Instruments and Exchange Act of Japan. At the time of this report’s
disclosure, audit procedures for consolidated financial statements under the Financial Instruments and Exchange Act were in progress.

* Explanation concerning the appropriate use of forecasts and other special instructions(Disclaimer)
Results forecasts and other forward-looking statements contained in this report are based on assumptions, beliefs, and uncertainties 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 notguarantee the accuracy of forecasts and other forward-looking statements and its ability to achieve stated targets. Please refer to “1. Analysis of Operating Results andFinancial Position (1) Analysis of Operating Results” on page 2 of the attachment materials for information regarding the underlying assumptions for financial results
forecasts and an explanation concerning the appropriate use of forecasts and other notes.

Attachment Materials: Table of Contents
1. ANALYSIS OF OPERATING RESULTS AND FINANCIAL POSITION.............................................................. 2(1) Analysis of Operating Results ................................................................................................................................. 2(2) Analysis of Financial Position ................................................................................................................................. 3(3) Basic Policy Concerning the Allocation of Profits and Dividends for Fiscal 2014 and Fiscal 2015 ...................... 4(4) Business and Other Risks ........................................................................................................................................ 4
2. OVERVIEW OF THE CORPORATE GROUP ........................................................................................................ 8
3. MANAGEMENT POLICY ...................................................................................................................................... 9(1) Basic Management Policy ....................................................................................................................................... 9(2) Target Management Benchmarks ............................................................................................................................ 9(3) Medium- and Long-Term Management Strategies ................................................................................................. 9(4) Pending Issues ......................................................................................................................................................... 9(5) Other Matters Important to the Company’s Management ....................................................................................... 9
4. CONSOLIDATED FINANCIAL STATEMENTS .................................................................................................. 10(1) Consolidated Balance Sheets................................................................................................................................. 10(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ............................ 12(Consolidated Statements of Income) ......................................................................................................................... 12(Consolidated Statements of Comprehensive Income) ............................................................................................... 13(3) Consolidated Statements of Changes in Net Assets .............................................................................................. 14(4) Consolidated Statements of Cash Flows ............................................................................................................... 15(5) Notes to Consolidated Financial Statements ......................................................................................................... 16(Notes Concerning Going Concern Assumptions) ...................................................................................................... 16(Segment and Other Information) ............................................................................................................................... 17―1―

1. ANALYSIS OF OPERATING RESULTS AND FINANCIAL POSITION(1) Analysis of Operating Results
In Fiscal 2014, the 12 months ended March 31, 2014, the Japanese economy continued to expand steadily
supported by the yen’s downward trend and higher stock prices due to the effects of monetary easing, part of thegovernment’s economic policies. The fiscal year also witnessed last-minute demand mainly for consumer durables(e.g., houses and automobiles) prior to the consumption tax rate hike scheduled for April 2014.
In the housing sector, there was a remarkable rush of custom-built house orders in the first half of the fiscal year
under review. This was attributable to a transitional measure implemented in association with the consumption tax
increase, which allowed future payment for said houses to remain at the pre-increase tax rate (5%) if contracts weresigned by the end of September 2013. The latter half of the year saw a significant decrease in orders following the rush.
Overall, however, demand for homes, including condominiums and detached houses, remained robust owing tocontinued low interest rates as well as tax benefits (e.g., tax breaks on home loans).
Under these circumstances, the Grandy House Group worked diligently to expand its business operations in linewith its medium-term target to “further strengthen the Group’s core business (real estate sales).” Specifically, theCompany spurred sales activities into full gear in Kashiwa City, Chiba Prefecture from the beginning of this fiscal
year and worked to increase market share in all areas. The Company also improved its land procurement system, amainstay of its business, and opened a branch in Isesaki City, Gunma Prefecture in March 2014. These approaches
brought about favorable results; new home sales were up 15.4% year-on-year at 1,151 units, setting a new record overthat of the previous year.
As a result of these factors, the Grandy House Group’s consolidated results for Fiscal 2014 were as follows. Net
sales were ¥37,259 million, up 14.5% from the previous fiscal year; operating income climbed to ¥2,932 million, an
increase of 26.5%; ordinary income reached ¥3,034 million, an increase of 26.8%; and net income totaled ¥1,762
million, an increase of 29.5%.
Results by business segment are presented as follows.
Real Estate Sales
In the new home sales business, we strived to build close relationship with landowners by further enhancing ourland procurement system and assigning dedicated staff members to each area. From a product perspective, we steppedup energy generation and conservation efforts (e.g., adoption of LEDs as lighting equipment and responses tonext-generation energy efficiency standards) while pursuing higher quality design and functionality. With respect tothe existing home sales business, the number of orders received declined considerably from the previous fiscal year
due to a slump in the number of properties available on the market. To increase order volume, we focused on
improving our procurement and sales systems. As a result, new home sales were up 154 units at 1,151 units while
existing home sales were down 42 units at 128 units on a year-on-year basis.
Accounting for each of these factors, revenues in the real estate sales segment rose 14.2% year-on-year to¥34,388 million. Segment profit grew to ¥2,809 million, up 35.1% from the previous fiscal year.
Construction Material Sales
In the construction material sales segment, orders received grew favorably owing to strong housing demand andgrowth in the Company’s housing division. Efforts to enhance our manufacturing system led to increased sales.
However, segment profit fell due to a surge in raw material costs (i.e., timber prices).
As a result, revenues in the construction material sales segment increased 24.5% year-on-year to ¥2,609 million,
while segment profit was ¥120 million, down 26.7% from the previous fiscal year.
Real Estate Leasing
In the real estate leasing segment, although there was no acquisition or sale of properties, revenues totaled ¥261
million, down 20.3% from the previous fiscal year, and segment profit was ¥133 million, down 31.1%. This waslargely a reflection of the transfer of properties (¥64 million of revenues in the previous fiscal year) temporarily
leased during the previous fiscal year to land for sale as their original purpose of use (Moka Oyadai New Town).

―2―Outlook
Although concerns remain about the negative impact of the higher consumption tax rate on consumer spending,the Japanese economy is expected to continue to grow due to expected factors such as improvements in wages and thejob market, wealth effects stemming from ongoing monetary easing policies by the Bank of Japan, and the benefits ofthe government’s economic policies.
Given such a business environment, we will stick to our business strategy of concentrating management
resources on our core business—the new home sales business. Seeking to expand our operating base and increase
market share, we will continue to focus on enhancing our production system.
Taking into account the above factors, Grandy House is forecasting consolidated net sales of ¥40,000 million for
the fiscal year ending March 31, 2015. This represents a 7.4% increase year-on-year. Operating income is forecast to
rise 4.0% to ¥3,050 million. Ordinary income is forecast to increase 3.8% to ¥3,150 million, with net income
improving 6.7% to ¥1,880 million.
(2) Analysis of Financial Positiona. Consolidated Balance Sheet
Total assets stood at ¥33,524 million as of March 31, 2014, up ¥3,406 million compared with the end of theprevious fiscal year. This upswing was mainly due to the increase of ¥3,248 million in total current assets reflecting
the higher balance of land for sale (real estate for sale) accompanying the expansion of areas in which the Company
operates in the real estate sales business.
Total liabilities grew ¥1,861 million compared with the previous fiscal year-end to ¥19,869 million. This increase
mainly consisted of the rise in total current liabilities (up ¥2,157 million), which reflected the higher levels of
short-term loans payable in order to fund the acquisition of land for sale.
Total net assets stood at ¥13,655 million as of the end of the fiscal year under review. This represents an increaseof ¥1,544 million from the balance recorded as of March 31, 2013 and mainly comprised the increase in retained
earnings. After accounting for the payment of dividends totaling ¥230 million, this increase was largely attributable tonet income for the period of ¥1,762 million.
b. Cash Flows
Cash flows from operating and investing activities resulted in decreases in cash and cash equivalents
respectively, and cash flows from financing activities resulted in an increase in cash and cash equivalents in thefiscal year under review. As a result, the balance of cash and cash equivalents at the end of the period amounted to¥5,554 million, up ¥346 million year-on-year.
Factors contributing to movements in the Company’s cash flows during the fiscal year under review arepresented as follows.
(Cash Flows from Operating Activities)
Net cash used in operating activities totaled ¥185 million in Fiscal 2014 (down ¥1,913 million compared withthe previous fiscal year). This was the result of higher cash outflows due to increases in inventories and income
taxes paid, compared with cash inflows such as net income before income taxes and increased notes and accounts
payable-trade.
(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to ¥454 million (down ¥411 million compared with the previous
fiscal year). This outflow is largely attributable to an increase in deposits paid as guarantee in accordance with
provisions stipulated under Japan’s Act on Assurance of Performance of Specified Housing Defect Warranty as wellas an increase in investment securities representing the acquisition of shares of Ashikaga Holdings Co., Ltd. for the
purpose of strengthening business ties with that company.
(Cash Flows from Financing Activities)
Net cash provided by financing activities totaled ¥987 million (down ¥1,767 million from the previous fiscal
year). This was mainly due to a net increase in short-term loans payable to fund the purchase of land for sale.

―3―

Trends in the Group’s cash flow-related indices are presented as follows.
Fiscal 2012
Shareholders’ equity ratio (%)
Equity ratio on market value basis (%)
Interest-bearing liabilities to cash flow ratio (years)
Interest coverage ratio (times)

43.5
24.3
4.2
12.9

Fiscal 2013
40.2
34.7
—
—

Fiscal 2014
40.7
28.2
—
—

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 shares issued and outstanding as of the period-end(after deducting treasury stock).
3. Cash flows from operating activities are used as “cash flows” in the above calculation. As operating cash flows
for the fiscal years ended March 31, 2013 and March 31, 2014 were negative, interest-bearing liabilities to cash
flow ratio and interest coverage ratio data have been omitted for these two years.
4. Interest-bearing liabilities include all liabilities that bear interest under the liabilities section recorded on
consolidated balance sheets.
(3) Basic Policy Concerning the Allocation of Profits and Dividends for Fiscal 2014 and Fiscal 2015
Grandy House maintains the fundamental profit allocation policy of ensuring the stable and continuous payment
of dividends while taking into consideration the need to retain sufficient internal reserves to engage in future businessdevelopment and strengthen its financial position. At the same time, the Company is conscious of proactively
returning profits to its shareholders through the payment of periodic extraordinary and commemorative dividends
depending on the timing and in light of performance growth.
Guided by this policy, Grandy House has declared an annual dividend of ¥8 per share for the fiscal year underreview. The annual dividend forecast for the year ending March 31, 2015 is ¥8 per share, the same as for Fiscal 2014.
Under its Articles of Incorporation, Grandy House has adopted a flexible and fluid approach toward the payment
of dividends from surplus based, which is subject to a resolution of the Company’s Board of Directors. In accordancewith standard practice, however, Grandy House plans to continue paying a single annual dividend to shareholders ofrecord as of March 31 each year. Complementing the payment of dividends, the Company will undertake the purchaseof treasury stock depending on its financial position as a part of comprehensive efforts to return profits to shareholders
through an increase in profits per share.
(4) Business and Other Risks
The Grandy House Group recognizes that a variety of factors has the potential to impact its operating results,financial position, and share price. Details are presented briefly as follows. Readers are reminded that forward-looking
statements are based on judgments in light of information currently available to management as of the date of thispublication.
1) Risks relating to real estate salesi.
Housing demand
The Grandy House Group is mainly engaged in the sale of real estate and construction materials aswell as real estate leasing operations. In the fiscal year under review, sales from the real estate sales
segment accounted for 92.3% of total net sales on a consolidated basis. Real estate sales activities entail thesale of detached and custom-built houses, the development and sale of land for housing use, and related
additional exterior construction work. The sale of houses and land for housing use is affected by thewillingness of purchasers to spend as well as demand trends. The willingness of purchasers to spend as well
as demand trends are in turn susceptible to such factors as movements in economic conditions, interest
rates, and land prices as well as forecasts of the future and tax systems applicable to the housing sector.
Shifts in any of these factors have the potential to impact the Group’s performance and financial position.
ii.
Sales and marketing area
The Grandy House Group maintains its operating base largely in the North Kanto area. In Fiscal 2014,
the ratio of sales generated from activities in Tochigi Prefecture was as high as 58.1%. In recent years, theGroup has worked diligently to expand its operating base and lift the ratios of revenue generated in
prefectures outside Tochigi. In the fiscal year under review, the share of Ibaraki Prefecture (Mito City,
Ushiku City, other), Gunma Prefecture (Takasaki City, Ota City, other), and Chiba Prefecture (Kashiwa
―4―

iii.

iv.

v.

vi.

City, other) sales as a ratio to total sales were 26.7%, 9.7%, and 5.3%, respectively. Despite theseendeavors, and for a variety of reasons including competitive relationships, the Group’s performance andfinancial position may be affected if the Company is unable to advance its strategies with respect to areasof particular emphasis according to plans.
Competition
In relative terms, the Grandy House Group maintains competitive advantage in Tochigi Prefecture. In
the event, however, that a new entity with the capacity to significantly impact the Group’s land supply
structure enters the market, substantial potential exists for the Group’s performance and financial position
to be affected.
In major metropolitan areas, competition is heating up between the Group’s industry peers. Thankslargely to the Group’s insistence on providing high value-added products including houses built for salethat offer such outstanding qualities as excellent room layout, external appearance, and townscaping,Grandy House is essentially holding the line against home builders who are promoting a low-price strategy.
Should competition continue to intensify resulting in a marked drop in prices, the potential exists for theGroup’s performance and financial position to be affected.
The procurement of sites and inventory for saleIn its real estate sales business, the Grandy House Group engages in a full range of activities. These
activities include negotiations for the purchase of land (sites), discussions with government agencies, site
development, the acquisition of permits and approvals, construction work, and maintenance. The period
from the purchase of land to construction completion generally takes about eight months. In the event ofsuch wide-ranging circumstances as the inability to purchase land or sites according to plans in advance ofsales due to difficulties in securing land that offers a favorable location and conditions, and a sharp rise inland prices, or any other unforeseen matter including a natural disaster that delays the period of
construction resulting in the failure to produce inventory for sale, the potential exists for the Group’s
performance and financial position to be affected.
Employees
The real estate industry is distinguished by the substantial mobility of its human resources and highrate of personnel turnover. The Grandy House Group is no exception and continuously confronts a highattrition rate particularly with respect to its sales staff. The principal reason is the extremely high productunit price and the significant amount of time and experience required for employees to achieve stable
results. Accordingly, it is not uncommon for employees to change jobs before reaching this point ofstability. Under these circumstances, the Company takes great pains to fully explain the nature of its workat the time of recruiting and hiring. Moreover, and in order to improve its retention rate, Grandy House
provides new employees with substantial education and on-the-job training. Every effort is made to ensurethat all employees are conversant with the Company’s sales and marketing activities that are deeply rooted
in the local community. In the event, however, that Grandy House is unable to secure sales staff on a stablebasis and according to plans, is unable to sufficiently foster the necessary human resources required tocarry out the important role of driving the Company’s business forward, and fails to improve its retention
rate, the potential exists for the Group’s performance and financial position to be affected.
Natural and other disasters
Large-scale natural and other disasters may give rise to substantial repair expenditure due to thedamage to business assets including operating bases as well as other damage to such merchandise as
detached houses. At the same time, any of the aforementioned disasters may force a suspension or delay ofoperations at business bases and work sites owing to physical injuries, property damage, and interruptions
to essential lifelines and social infrastructure. Furthermore, disasters may result in delays in construction
and delivery reflecting such factors as the time required to complete repairs and delays in the delivery of
construction materials. In each case, the potential exists for the Group’s performance and financial position
to be affected.

2) Risks relating to financial position and operating resultsi.
Dependence on debt
In the conduct of its real estate sales activities, the Grandy House Group procures all or a portion of thefunds required to purchase land earmarked for development and to meet development as well as building
construction expenses from financial and other institutions on an individual project basis. The subject land isgenerally lodged as collateral for each loan. In addition, debt finance is primarily the source of funds used topurchase and/or construct properties that underpin the Group’s real estate leasing activities as well aspurchase and/or construct properties that are used to establish business bases. As of March 31, 2014, thebalance of interest-bearing liabilities stood at ¥15,396 million.
―5―

ii.

iii.

iv.

In this context, a rise in interest rates or a prolonged period during which interest rates hover at a highlevel due to such factors as changes in economic conditions and restrictions on the access to debt and otherfunding owing to a deterioration in the Group’s credit standing can lead to difficulties in the conduct ofbusiness such as an increase in the interest expense burden, or a change in business plans. As a result, thepotential exists for the Group’s performance and financial position to be affected.
Decline in the values of noncurrent assets and real estate for saleWith its operating base in the North Kanto area, the Grandy House Group engages in such wide-ranging
activities as the acquisition, development, sale, and leasing of real estate. In the event of a deterioration in realestate market conditions, the Group may incur an impairment of its noncurrent assets or a major write-downof its real estate for sale and other assets. This then has the potential to affect the Group’s performance andfinancial position.
Change in performance due to delays in delivery
Revenues from the sale of detached housing are recorded for accounting purposes at the time of delivery.
While certain large-scale projects require a considerable amount of time through to delivery, the periodrequired from the purchase of land to building completion is generally around eight months. Naturally, strict
management is undertaken to monitor progress. In the event, however, of a delay in construction due to suchfactors as natural disasters or other unforeseen circumstance, or a substantial delay in delivery owing to
unexpected contingencies that result in the carryover of sales into the next period, the potential exists for theGroup’s performance to be affected. In addition, in the event that a hit product that contributes to theshortening of sales periods emerges, or orders received exceed the forecast number of properties sold due toa variety of factors including economic trends, and a drop-off in the supply of products for sale arises
thereafter, the potential exists for the Group’s performance and financial position to be affected.
Sharp rise in material prices
The detached housing products handled by the Group employ timber- and petroleum-related materials.
On this basis, and in the event of difficulties in reducing costs or passing on to consumers any increase in theprices of materials procured owing to fluctuations in market conditions and foreign currency exchange rates,
the potential exists for the Group’s performance and financial position to be affected.

3) Risks relating to statutory and regulatory requirements
The Grandy House Group engages in business activities that are regulated by such wide-ranging legislation as
Building Lots and Buildings Transaction Business Act, Construction Business Act, and Act on Architects andBuilding Engineers. In addition, the Group is subject to a variety of statutory and regulatory requirements including
those stipulated under Japan’s City Planning Act, National Land Use Planning Act, Act on Regulation of Residential
Land Development, Building Standards Act, Housing Quality Assurance Act, and the Act on Assurance of
Performance of Specified Housing Defect Warranty. In the event that a revision or abolition of any of theaforementioned or other applicable statutory and regulatory requirements, or the establishment of any new statute or
regulation leads to an increase in expenditure or delays in assessment periods by governing agencies, the potential
exists for the Group’s performance to be affected.
Legislation related to such key issues as permits and approvals including Building Lots and Buildings
Transaction Business Act, Construction Business Act, and Act on Architects and Building Engineers stipulate theduration of validity and causes for cancellation. The Grandy House Group adheres strictly to all statutory andregulatory requirements and as of the date of this report has not incurred any cancellation or refusal to renew permits
and approvals. However, if for whatever reason a permit or approval is cancelled, or renewal is refused, and the Group
incurs difficulties in carrying out its mainstay business activities, the potential exists for the Group’s performance tobe seriously affected.
Details of the Grandy House Group’s principal permits and approvals as well as durations of validity and causesof cancellation are presented in the following table.

―6―

Name of Permit,
Approval, etc.

Company NameGrandy House Corporation
IBARAKI Grandy House
Corporation
Real estate operator
licenseGUNMA Grandy House
Corporation
CHIBA Grandy House
Corporation
Chukojutaku Johokan
Corporation
Grandy House Corporation

Construction license
IBARAKI Grandy House
Corporation

Grandy House Corporation

IBARAKI Grandy House
Corporation

Architect officeregistration
GUNMA Grandy House
Corporation

CHIBA Grandy House
Corporation

Chukojutaku Johokan
Corporation

General Livetech Corporation

Grandy Reform Corporation

Permits / Approval Number
Period of Validity

Regulation /StatuteCauses ofPermit,Approval, etc.
Cancellation,
Other

Minister of Land, Infrastructure and Transportation(3) No. 5942
October 21, 2009 – October 20, 2014
The Governor of Ibaraki Prefecture (2) No. 6548
Building Lots
December 1, 2012 – November 30, 2017
andArticle 65,
The Governor of Gunma Prefecture (2) No. 6860
Buildings
Article 66,
December 12, 2012 – December 11, 2017
Transaction Article 67
The Governor of Chiba Prefecture (1) No. 16460
Business Act
April 4, 2013 – April 3, 2018
Minister of Land, Infrastructure and Transportation(1) No. 8039
September 1, 2010 – August 31, 2015
The Governor of Tochigi Prefecture
Authorization (Special-24) No. 22719
Article 28,
February 1, 2013 – January 31, 2018
Construction
Article 29,
Business Act
The Governor of Ibaraki Prefecture
Article 29-2
Authorization (General-24) No. 32248
March 6, 2013 – March 5, 2018
First class architect office registration
The Governor of Tochigi Prefecture
Registration A(c) No. 2430
November 28, 2011 – November 27, 2016
First class architect office registration
The Governor of Tochigi Prefecture
Registration A(b) No. 2694
January 4, 2011 – January 3, 2016
First class architect office registration
The Governor of Ibaraki Prefecture
Registration No. A3316
March 6, 2013 – March 5, 2018
Second class architect office registration
The Governor of Ibaraki Prefecture
Registration No. B5348
Act onMarch 29, 2013 – March 28, 2018
Architects
Article 26
and Building
First class architect office registration
Engineers
The Governor of Gunma Prefecture
Registration No. 4164
November 30, 2012 – November 29, 2017
First class architect office registration
The Governor of Chiba Prefecture
Registration No. 1-1304-7782
April 19, 2013 – April 18, 2018
Second class architect office registration
The Governor of Tochigi Prefecture
Registration No. B(a) 4320
April 25, 2012 – April 24, 2017
Second class architect office registration
The Governor of Tochigi Prefecture
Registration No. B4467
March 1, 2011 – February 29, 2016
Second class architect office registration
The Governor of Tochigi Prefecture
Registration No. B4539
June 7, 2013 – June 6, 20184) Personal information protection
The Grandy House Group handles individual, customer, and related personal information in the normal course of
its order activities. The Group takes great care to put in place a sound information management structure and systems
which are complemented by the continuous update of internal rules and regulations. In the event, however, of theleakage of personal information to external parties that leads to a loss of credibility or the payment of compensation
for damages, the potential exists for the Group’s performance and financial position to be affected.
―7―

2. OVERVIEW OF THE CORPORATE GROUP
The Grandy House Group (Grandy House and the Company’s affiliated companies) is comprised of GrandyHouse and six subsidiary companies. The Group’s principal business activities include the sales of real estate, the saleof construction materials, and the leasing of real estate.
Details of the business activities of the Group and the activities undertaken by the Company and each subsidiarycompany are presented as follows.
(1) Real Estate Sales
The Grandy House Group engages in a wide range of real estate-related activities from the procurement of landfor sale in lots through the acquisition of related permits and approvals to the management of housing landdevelopment work, housing design and construction, sales, and after-sales maintenance and service.
In its mainstay detached housing sale, design, and construction activities, the Group has adopted an oversight
structure by individual operating area. This takes into account the Group’s focus on operations that remain deeply
rooted in the local community. Each company is active within its own basic area of operations. Grandy House operates
mainly in Tochigi Prefecture and a portion of Ibaraki Prefecture. IBARAKI Grandy House and GUNMA GrandyHouse operate mainly in Ibaraki Prefecture and Gunma Prefecture, respectively. CHIBA Grandy House operates
mainly in Chiba Prefecture.
Chukojutaku Johokan is primarily engaged in the sale of existing homes. Grandy Reform is active in housing
maintenance and after-sales service as well as housing renovations.
(2) Construction Material Sales
General Livetech is involved mainly in the sale of construction materials and items focusing primarily on precut
materials.
(3) Real Estate Leasing
Grandy House is engaged in such activities as the leasing of its own buildings for rent as well as condominiums
and other properties. The Company is also active in the parking business.
The following schematic provides an overview of the structure and businesses of the Grandy House Group (as ofMarch 31, 2014).

Grandy House Corporation
Supply of pre-cut and other materials
Leasing of residential properties, shops, andbuildings; parking facility business

Sale of pre-cut andother materials

Housingrenovations

General Livetech

Maintenance and aftersales service

Sale of existing homes

Grandy Reform

Chukojutaku Johokan

Maintenance and aftersales service consignment

Sale of detached housing and related activities(Ibaraki, Gunma and Chiba Prefecture)

Sale of detached housing and related activities(Tochigi Prefecture and others)

IBARAKI Grandy HouseGUNMA Grandy HouseCHIBA Grandy House

Customers
Construction
Material Sales

Real Estate Sales―8―

Real Estate
Leasing

3. MANAGEMENT POLICY(1) Basic Management Policy
The Grandy House Group’s basic management policy entails providing homes that deliver comfort and peace ofmind to help realize a rich and abundant society. Guided by this policy, we have continued to nurture our housing landdevelopment capabilities since foundation. With this as our core competence, we have taken consistently positive
steps to add significant value to both land and buildings and provide attractive and appealing homes through aproprietary integrated system that extends from the purchase of land through housing design to construction, sales,
maintenance, and after-sales service. Looking ahead, we will continue to make every effort toward delivering better
homes by developing new technologies, enhancing quality, and upgrading and expanding our menu of services. At thesame time, we will do our utmost to meet the expectations of society as a good corporate citizen.
(2) Target Management Benchmarks
The Grandy House Group targets stable and sustainable growth. In this context, we place considerable
importance on various benchmarks that measure the growth potential and earning capacity of net sales and ordinary
income. In specific terms, we are targeting annual growth of 10% or more.
(3) Medium- and Long-Term Management Strategies
The medium-term basic policy of the Grandy House Group is to aim for sustainable growth by strengthening
our core business, namely real estate sales focusing on new homes. As a strategy to ensure such growth, we havebeen expanding our operating base and increasing market share in each area. During the previous fiscal year, westarted restructuring operations for the Kashiwa area of Chiba Prefecture. In March 2014, we opened a branch in
Isesaki City, Gunma Prefecture, and we started initiatives to increase order volume in the Gunma area.
In addition, we seek to ensure an even stronger management base by developing and enhancing our production
system in line with the Group’s growth strategy. In the detached home sales business, productivity and quality areboth secured at a high level through one-stop operations within the Group, encompassing land procurement throughto land development, housing design, and construction management. We will continue to focus on developing andstrengthening our construction system as well as enhancing our land procurement capability in an effort todistinguish ourselves from competitors.
(4) Pending Issues
Expectations are that the Japanese economic recovery will continue against the backdrop of improved corporate
earnings and a better employment environment (e.g., wage increases), though concerns remain about decreases in
consumer spending resulting from the higher consumption tax rate and a drop in housing investment following theincreased demand experienced prior to the tax hike.
Under such an economic environment, the Grandy House Group has consistently sought to achieve sustainablegrowth by strengthening the Group’s core business, namely real estate sales focusing on new homes, as its basic
policy. The Group’s management priority is to ensure a broader operating base and higher market share in each area.
To this end, we will further strengthen our management base through various initiatives in order to enhance our
production system (e.g., by increasing the number of staff members in charge of land-for-sale procurement andsecuring construction personnel for new areas). With such a stronger management base, we will focus on sales
activities closely tailored to each region in which we operate, thereby pursuing higher profitability.
(5) Other Matters Important to the Company’s Management
The products and services handled by the Grandy House Group are essentially geared toward the individual
customer. In this regard, there are instances where members of the Board of Directors pursue dealings with theCompany. This includes the purchase and/or construction of homes. In each case, transactions are conducted at thesame price and profit level as those that apply to the Group’s general customer base. Again, this includes the price forhouses built for sale and ensures that transactions are conducted at an appropriate level of profit. For other products
such as custom-built homes, the terms and conditions of transactions are based on calculations regarding fair andappropriate prices as well as formal appraisals. Moreover, transactions are subject to prior approval by the Company’s
Board of Directors.

―9―

4. CONSOLIDATED FINANCIAL STATEMENTS(1) Consolidated Balance Sheets(Thousands of Yen)FY2013(As of March 31, 2013)
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
Merchandise and finished goods
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts

FY2014(As of March 31, 2014)

5,218,245
394,082
6,171,787
10,1597,404,313
252,665
113,328
124,336
256,258(2,788)5,562,541
584,984
8,903,433
9,388
7,373,275
174,064
138,064
126,944
321,913（4,196)

19,942,389

23,190,415

4,663,682(1,324,144)

4,680,319(1,435,893)

Buildings and structures, net

3,339,538

3,244,425

Machinery, equipment and vehicles
Accumulated depreciation

16,171(11,627)

25,121(13,112)

Total current assets
Noncurrent 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
Lease assets
Accumulated depreciation
Lease assets, net
Total property, plant and equipment
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 noncurrent assets
Total assets

―10―

4,543

12,009276,085(231,095)

273,207(231,169)

44,98942,0385,915,880
253,914(99,175)

5,817,230
256,360(114,981)

154,738

141,378

9,459,690

9,257,082

64,062

68,487514,882
29,98786,29557,245(36,283)

744,408
41,707
100,514155,166(32,818)

652,127

1,008,979

10,175,880

10,334,548

30,118,269

33,524,964

(Thousands of Yen)FY2013(As of March 31, 2013)
Liabilities
Current liabilities
Accounts payable for construction contracts
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Provision for warranties for completed construction
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Provision for retirement benefits
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities

FY2014(As of March 31, 2014)

2,299,933
11,639,900
482,61249,630579,31355,433644,494

2,636,832
13,347,080
410,495
49,770735,391
63,040666,258

15,751,317

17,908,869

1,828,171
123,134
221,276
17,241

1,461,426
103,482—

66,493

286,655
63,8252,256,316

1,960,555

18,007,633

19,869,425

2,077,500
2,205,165
8,179,785(351,814)

2,077,500
2,205,165
9,712,087(351,814)

12,110,636

13,642,938—

12,600—12,600—45,166

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets―11―

12,110,636

13,655,539

30,118,269

33,524,964

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Thousands of Yen)
Fiscal 2013
(From April 1, 2012
to March 31, 2013)

Fiscal 2014
(From April 1, 2013
to March 31, 2014)

Net sales
Cost of sales

32,540,755
26,484,807

37,259,532
30,207,471

Gross profit

6,055,947

7,052,061

Selling, general and administrative expenses

3,738,810

4,119,884

Operating income

2,317,137

2,932,176

Non-operating income
Interest income
Dividends income
Operations consignment fee
Office work fee
Other

900
139
161,020
135,062
31,747

1,435
138
195,811
142,160
26,881

Total non-operating income

328,869

366,427

Non-operating expenses
Interest expenses
Commission for syndicate loan
Other214,420
32,198
6,909

263,944

Total non-operating expenses——

253,527

263,9442,392,479

3,034,659

Loss on retirement of noncurrent assets
Impairment loss
Loss on cancellation of lease contracts
Environmental expenses

20,251
46,26041
27,39918,192
112,590
3,575—

Total extraordinary loss

93,953

134,358

Net income before income taxes

Ordinary income
Extraordinary loss

2,298,525

2,900,301

Income taxes-current
Income taxes-deferred

947,629(10,435)

1,161,509(23,726)

Total income taxes

937,194

1,137,782

Income before minority interests

1,361,331

1,762,518

Net income

1,361,331

1,762,518―12―

(Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Fiscal 2013
(From April 1, 2012
to March 31, 2013)
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income

Fiscal 2014
(From April 1, 2013
to March 31, 2014)

1,361,331

1,762,518—

12,600—12,6001,361,331

1,775,119

1,361,331—

1,775,119—

Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests―13―(3) Consolidated Statements of Changes in Net Assets
Fiscal 2013 (From April 1, 2012 to March 31, 2013)(Thousands of Yen)
Shareholders’ equity

Balance as of the beginning of the period

Capital stock

CapitalsurplusRetainedearnings

Treasury
stock

Total
shareholders’equityTotal net assets

2,077,500

2,205,165

7,106,226(351,780)

11,037,110

11,037,110

Changes of items during the period
Dividends from surplus(287,772)(287,772)(287,772)

Net income

1,361,331

1,361,331

1,361,331

(33)

(33)

Purchase of treasury stock(33)

Net changes to items other than shareholder
equityTotal changes of items during the period
Balance as of the end of the period——

1,073,559(33)

1,073,525

1,073,525

2,077,500

2,205,165

8,179,785(351,814)

12,110,636

12,110,636

Fiscal 2014 (From April 1, 2013 to March 31, 2014)(Thousands of Yen)
Valuation andtranslation adjustments

Shareholders’ equity

Balance as of the beginning of the period

Capitalstock

CapitalsurplusRetained Treasury
earnings
stock2,077,500

2,205,165

8,179,785

Total
shareholders’equity(351,814) 12,110,636

Valuation
Total
difference
valuation Total net assetsonandavailabletranslation
for-saleadjustments
securities——

12,110,636

Changes of items during the period
Dividends from surplus(230,216)(230,216)(230,216)

Net income

1,762,518

1,762,518

1,762,518

Net changes to items other than shareholder
equityTotal changes of items during the period
Balance as of the end of the period——

1,532,302

2,077,500

2,205,165

9,712,087―14―

12,60012,6001,532,302

12,60012,6001,544,903(351,814) 13,642,938

12,60012,60013,655,539—

12,600(4) Consolidated Statements of Cash Flows(Thousands of Yen)
Fiscal 2013
(From April 1, 2012
to March 31, 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

Fiscal 2014
(From April 1, 2013
to March 31, 2014)

2,298,525
220,766
41,5972,900,301
230,359(221,276)

17,241

27,924

4,218

7,606

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
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(8,998)—(1,039)214,420
46,26020,251
19,355(4,331,279)
455,622(52,645)(2,057)
286,655(1,574)
263,944
112,590
18,192(187,423)(2,645,973)
336,899(25,659)

Subtotal(1,055,703)

1,100,510

1,039(214,353)(830,434)

1,574(280,858)(1,006,985)(2,099,451)(185,759)(353,103)(19,192)(499,880)
—
5,517
(41)
4,063
(21,600)
18,000(108,956)(20,833)(210,000)(14,700)
4,179(111,582)
1,176(15,500)
21,440Interest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments of loans receivableCollection of loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other payments
Other proceeds
Net cash provided by (used in) investing activities(866,236)(454,776)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Cash dividends paid
Repayments of lease obligations

3,155,270
943,000(1,008,734)(33)(286,913)(47,678)

1,707,180
50,000(488,862)—(229,828)(51,157)

Net cash provided by (used in) financing activities

2,754,910

987,332

Net increase (decrease) in cash and cash equivalents(210,776)

346,796

Cash and cash equivalents at beginning of the period

5,418,522

5,207,745

Cash and cash equivalents at end of the period

5,207,745

5,554,541―15―

(5) Notes to Consolidated Financial Statements(Notes Concerning Going Concern Assumptions)Not applicable.

―16―

(Segment and Other Information)
Segment Information
1. Overview of reportable segments
The reportable segments of the Group are components for which separate financial information is available andwhose 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 real estate- and housing-related business activities. The Group’s
principal real estate, product, and service activities include the manufacture of general wood frame housing, whichmainly comprise houses built for sale, and pre-cut materials, sale of construction materials, and the provision of office,parking facility, and other leasing services. The Group puts forward comprehensive plans on an individual real estate,product, and service basis as a part of its business development activities. Taking each of the aforementioned into
consideration, the Grandy House Group’s business is classified into the three Real Estate Sales, Construction Material
Sales, and Real Estate Leasing segments based on real estate, products, and services.
In the Real Estate Sales business, activities include the sale of such properties as new detached housing andexisting homes. In the Construction Material Sales business, the Group engages in the manufacture and sale of precut
materials as well as the sale of construction materials for housing use. In the Real Estate Leasing business, activities
comprise the leasing of office, homes, related properties, and parking facilities.
2. Calculation method of net sales, profit and loss, assets, liabilities, and other items by reportable segment
The accounting method for reportable segments is the same as that outlined under “Important Items Fundamental
to the Preparation of Consolidated Financial Statements (This part is omitted on this translation).” Segment profit andloss are based on ordinary income. Inter-segment sales or transfers are calculated based on market prices.
3. Information relating to the amounts of net sales, profit and loss, assets, liabilities, and other items by reportablesegment
The fiscal year ended March 31, 2013 (April 1, 2012 to March 31, 2013)(Thousands of Yen)
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

30,117,269

2,095,652

327,833

Total

Adjustments(Note 1)

AmountRecorded on
Consolidated
Financial
Statements(Note 2)—32,540,755

Net sales
Sales to outside customers
Inter-segment sales and transfers
Total

32,540,755—

2,204,599

59,3142,263,913(2,263,913)—

30,117,269

4,300,252

387,147

34,804,669(2,263,913)

32,540,755

Segment profit

2,078,680

164,725

193,157

2,436,563(44,084)

2,392,479

Segment assets

20,337,501

1,936,179

4,717,452

26,991,132

3,127,137

30,118,269

Segment liabilities

16,533,145

1,623,026

100,194

18,256,367(248,733)

18,007,633

128,704

39,31152,750220,766—

220,766

Other items
Depreciation and amortization
Interest income

869

31

—

900

—

900

Interest expenses

202,590

11,145684

214,420—

214,420

Increase in property, plant andequipment and intangible assets

384,339

21,203285

405,827—

405,827―17―

The fiscal year ended March 31, 2014 (April 1, 2013 to March 31, 2014)(Thousands of Yen)
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

34,388,656

2,609,566

261,308

Total

Adjustments(Note 1)

AmountRecorded on
Consolidated
Financial
Statements(Note 2)—

37,259,532

Net sales
Sales to outside customers
Inter-segment sales and transfers
Total

37,259,532—

2,677,549

73,4852,751,035(2,751,035)—

34,388,656

5,287,116

334,794

40,010,567(2,751,035)

37,259,532

Segment profit

2,809,029

120,697

133,173

3,062,899(28,240)

3,034,659

Segment assets

23,668,428

2,096,663

4,501,781

30,266,873

3,258,090

33,524,964

Segment liabilities

18,357,219

1,750,983

89,332

20,197,535(328,110)

19,869,425

138,886

40,45851,014230,359—

230,359

Other items
Depreciation and amortization
Interest income

1,395

39

—

1,435

—

1,435

Interest expenses

251,612

11,886446

263,944—

263,944

Increase in property, plant andequipment and intangible assets

122,499

41,596

5,174

169,270—

169,270

Note 1: Details of adjustments are presented as follows.

Segment profit(Thousands of Yen)
Fiscal 2013
Eliminations of inter-segment translation
Total

Fiscal 2014
(44,084)(28,240)(44,084)(28,240)

Segment assets(Thousands of Yen)
Fiscal 2013

Fiscal 2014

Eliminations of inter-segment receivables(247,517)(331,050)

Eliminations of inter-segment unrealized profit(30,952)(23,452)

3,405,607

3,612,593

3,127,137

3,258,090

Corporate assets
Total

Note: 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 2013
Eliminations of inter-segment payables
Total

―18―

Fiscal 2014
(248,733)(328,110)(248,733)(328,110)Interest income(Thousands of Yen)
Fiscal 2013

Fiscal 2014

Eliminations of inter-segment transactions

—

—

Total

—

—

Interest expenses(Thousands of Yen)
Fiscal 2013

Fiscal 2014

Eliminations of inter-segment transactions

—

—

Total

—

—

Increase in property, plant and equipment and intangible assets(Thousands of Yen)
Fiscal 2013

Fiscal 2014

Eliminations of inter-segment transactions

—

—

Total

—

—

Note 2: Segment profit is adjusted with the ordinary income recorded in consolidated financial statements.

Related Information
The fiscal year ended March 31, 2013 (April 1, 2012 to March 31, 2013)
1.

Information by product and service(Thousands of Yen)
Real Estate Sales

Sales to outside customers

Construction Material
Sales

Real Estate Leasing

2,095,652

327,833

30,117,269

Total
32,540,755

2. Information by geographic segment(1) Net sales
There are no sales to outside customer other than in Japan. Accordingly, there is no applicable information toreport.
(2) Property, plant and equipment
There are no property, plant and equipment located outside of Japan. Accordingly, there is no applicable
information to report.
3.

Information by principal customer
There is no single outside customer who accounts for 10% or more of the total net sales recorded in the
consolidated statements of income. Accordingly, there is no applicable information to report.

The fiscal year ended March 31, 2014 (April 1, 2013 to March 31, 2014)
1.

Information by product and service(Thousands of Yen)
Real Estate Sales

Sales to outside customers

Construction Material
Sales

Real Estate Leasing

2,609,566

261,308

34,388,656

―19―

Total
37,259,532

2. Information by geographic segment(1) Net sales
There are no sales to outside customer other than in Japan. Accordingly, there is no applicable information toreport.
(2) Property, plant and equipment
There are no property, plant and equipment located outside of Japan. Accordingly, there is no applicable
information to report.
3.

Information by principal customer
There is no single outside customer who accounts for 10% or more of the total net sales recorded in the
consolidated statements of income. Accordingly, there is no applicable information to report.

Information concerning Impairment Loss on Noncurrent Assets by Reportable Segment
The fiscal year ended March 31, 2013 (April 1, 2012 to March 31, 2013)(Thousands of Yen)

Impairment loss

Real Estate Sales

Construction
Material Sales

25,571—

Real Estate
Leasing

Total

20,689Adjustment
Amount46,260Total—

46,260The fiscal year ended March 31, 2014 (April 1, 2013 to March 31, 2014)(Thousands of Yen)

Impairment loss

Real Estate Sales

Construction
Material Sales

112,590—

Real Estate
Leasing

Total—

112,590

Adjustment
AmountTotal—

112,590

Information concerning the Amount of Goodwill Amortization and the Balance of Unamortized Goodwill by
Reportable Segment
The fiscal year ended March 31, 2013 (April 1, 2012 to March 31, 2013)
Not applicable.
The fiscal year ended March 31, 2014 (April 1, 2013 to March 31, 2014)
Not applicable.
Information concerning Gain on Negative Goodwill by Reportable Segment
The fiscal year ended March 31, 2013 (April 1, 2012 to March 31, 2013)
Not applicable.
The fiscal year ended March 31, 2014 (April 1, 2013 to March 31, 2014)
Not applicable.

―20―