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 the Third Quarter of Fiscal 2023 Ending March 31, 2023 (Japanese GAAP)
February 13, 2023
Grandy House Corporation
Stock Exchange Listing:Tokyo Stock Exchange
8999
URL:
https://www.grandy.co.jp
Yasuro Hayashi, President
Atsuo Saito, Executive Vice President, General Manager, Corporate
Inquiries:
TEL: +81-28-650-7777
Administrative Division
Scheduled date of quarterly securities report filing:
February 13, 2023
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
None
Quarterly results briefing held:
None
Company Name:
Securities Code:
Representative:(Figures are rounded down to the nearest million yen unless otherwise stated.)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2023
(April 1, 2022 to December 31, 2022)(1) Consolidated Operating Results
Net Sales(Percentage figures show the year-on-year increase (decrease).)Net Income Attributable
Operating Income
Ordinary Income
to Owners of the Parent(¥ million)%(¥ million)%(¥ million)%(¥ million)%

40,6890.4

2,586(15.7)

2,433(16.5)

1,677(14.5)

40,507

20.0

3,069

126.0

2,913

140.8

1,962

156.5

Nine months ended
December 31, 2022
Nine months ended
December 31, 2021
Note: Comprehensive income

Nine months ended December 31, 2022: ¥1,716 million (−12.0%)
Nine months ended December 31, 2021: ¥1,950 million (157.8%)(¥)

Net Income per Share(Diluted)
(¥)

57.73

57.36

66.80

66.24

Total Assets(¥ million)
69,28260,901Net Assets(¥ million)
25,61924,660Net Income per Share

Nine months ended
December 31, 2022
Nine months ended
December 31, 2021

(2) Consolidated Financial Position

December 31, 2022
March 31, 2022
Reference: Shareholders' equity

Shareholders' Equity Ratio
%
36.9
40.4

Net Assets per Share(¥)
875.64850.82

December 31, 2022: ¥25,562 million
March 31, 2022: ¥24,592 million

2. Dividends
1Q-End2Q-End(¥)——

Fiscal 2022
Fiscal 2023
Fiscal 2023 (Forecast)

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

Period-End

Total

(¥)
30.00

(¥)
30.00

32.00

32.00

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

3. Consolidated Financial Forecasts for Fiscal 2023 (April 1, 2022 to March 31, 2023)

Net Sales

Full Fiscal Year(¥ million)
58,000Operating Income%
5.7(¥ million)
4,070

%
1.2

(Percentage figures show the year-on-year increase (decrease).)Net Income
Ordinary Income
Attributable to
Net Income per ShareOwners of the Parent(¥ million)%(¥ million)
%
(¥)
3,820
0.3
2,600
0.6
89.95

Note: Revisions to the most recently announced financial forecasts in the current quarter: None

* Notes(1) Significant changes to subsidiaries during the period(Changes in significant subsidiaries resulting in changes in the scope of consolidation): None
Newly included: —Excluded: —(2) Adoption of specific methods for preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting estimates, and restatements
1) Changes in accounting policies due to revision to accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatements:(4) 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

December 31, 2022

30,823,200 shares

March 31, 2022

December 31, 2022
Nine months ended
December 31, 2022

1,629,645 shares

March 31, 2022
1,918,845 shares
Nine months ended
29,382,655 shares
December 31, 2021

29,059,695 shares

30,823,200 shares

Note: The number of treasury shares at the end of the fiscal year includes shares held by "Grandy House Employee Stock
Holding Partnership Exclusive Trust Account" (993,200 shares on December 31, 2022, 1,194,000 shares on March
31, 2022). In addition, shares held by "Grandy House Employee Stock Holding Partnership Exclusive Trust
Account" are included in the treasury shares that are deducted from the calculation of the average number of shares
during the period is calculated. The number of shares excluded from the average number of shares during the ninemonth periods ended December 31, 2022 and December 31, 2021 were 1,085,440 shares and – shares, respectively.
*

This consolidated quarterly financial report is not subject to quarterly review by a certified public accountant or an
audit firm.

*

Explanation concerning the appropriate use of financial forecasts and other special instructions
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.

Attachment Materials: Table of Contents
1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS.................................................................. 2(1) Explanation regarding Operating Results........................................................................................................... 2(2) Explanation regarding Financial Position .......................................................................................................... 3(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts ....................................... 3
2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ................................................. 4(1) Quarterly Consolidated Balance Sheets ............................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ..................................................... 6(Quarterly Consolidated Statements of Income)(Consolidated cumulative third quarter) ......................................................................................................6(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative third quarter) ......................................................................................................7(3) Notes to Quarterly Consolidated Financial Statements ...................................................................................... 8(Notes on Going Concern Assumptions)............................................................................................................8(Notes on Significant Changes in the Amount of Shareholders' Equity) ...........................................................8(Additional Information) ....................................................................................................................................8(Segment Information) .......................................................................................................................................9― 1 ―1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
In the cumulative nine month period ended December 31, 2022, the Japanese economy continued to recoverslowly as the impact of COVID-19 infections weakened and the situation returned to normal. On the other hand,
there were events that may affect the business environment in the future, such as a further rise in prices in Japanand a change to the policy for controlling long-term interest rates by the Bank of Japan.
In the housing sector, the number of new housing (detached houses for sale) in the survey for Statistics on
Building Construction Started publicized by the Ministry of Land, Infrastructure, Transport and Tourism marked
a year-on-year increase for 18 consecutive months until October 2022, but started declining year on year fromthis past November.
The Grandy House Group has upheld the basic policies of "Strengthen our business foundations and expand
business areas for sustainable growth in the new home sales business," "Expand the scale of the housing stockbusiness and maximize synergies with the new home sales business" and "Strengthening our response tosustainability (ESG) issues" in the third medium-term business plan (from the fiscal year ended March 31, 2022
to the fiscal year ending March 31, 2024). Accordingly, the Group has made efforts to further improve its
corporate value and expand its businesses.
As a result of these initiatives, the Construction Material Sales Business and the Real Estate Leasing Business
continued to perform well. However, the Real Estate Sales Business, the Group's core business, saw orders
received were affected mainly by a surge in housing prices, resulting from a rise in construction materials, and adeterioration in the economic conditions. Accordingly, consolidated cumulative operating results for the third
quarter of fiscal 2023 were as follows: Net sales were ¥40,689 million, an increase of 0.4% year-on-year;
operating income was ¥2,586 million, a decrease of 15.7% year-on-year; ordinary income was ¥2,433 million, adecrease of 16.5% year-on-year; and net income attributable to owners of the parent totaled ¥1,677 million, adecrease of 14.5% year-on-year.
Operating results by business segment were as follows.
a. Real Estate Sales
In the real estate sales, we have continued to implement thorough infection prevention measures and focus on
non-contact sales activities with the safety and security of customers and employees given top priority.
In new home sales, as measures to strengthen business foundations for growth, we engaged in broadening thearea of activity centered on sales bases through activities in the Tokyo metropolitan area (Tokyo, Saitama, Chiba
and Kanagawa) including preparations for opening a new branch (the city of Chiba), a shift to an in-house
construction system in the Kanagawa area, the securing of valuable properties in each sales area, and theacquisition of land and reinforcement of a sales system with an eye to expanding business in Tokyo.
In the product side, we focused on building sustainable housing such as "Sora Town Tsukuba Matsushiro" (atotal of 96 lots in the city of Tsukuba, Ibaraki Prefecture) in which houses in all lots employed a net-zero-energy
house system (ZEH), and "Higashimine Terrace (a total of 87 lots in the city of Utsunomiya, Tochigi Prefecture)"
in which all houses were equipped with insulation specifications as per the ZEH standards, under the concept ofbeing in harmony with the environment of the local community and safe, healthy and comfortable housing.
However, the number of new homes sold for the cumulative third quarter of the fiscal year under review was
1,052, a decrease of 75 homes year-on-year, as a result of a shortage of products for sale in some areas and signsof cautiousness in consumer sentiment caused by impacts of events such as a surge in housing prices.
In existing home sales, purchase and selling prices were on an upward trend mainly in the Tokyo
metropolitan area as the price of new homes kept increasing, which raised the need for existing homes whose
selling prices were lower than those of new housing.
Under these circumstances, we engaged in enhancing our cooperative relationships with brokers andscrutinizing properties for auction in order to select properties to purchase. However, partly due to a decline in
consumer purchasing appetite resulting from the price rise, the number of homes sold for the consolidated
cumulative third quarter of fiscal year under review was 99, a decrease of 17 homes year-on-year.
As a result, sales in the real estate sales segment in the consolidated cumulative third quarter of fiscal 2023
decreased by 1.0% year-on-year to ¥37,352 million, with a segment profit of ¥1,977 million, a decrease of 21.2%
year-on-year.

― 2 ―b. Construction Material Sales
The number of new housing starts for wooden houses, an indicator of the market environment, fell year-onyear for nine consecutive months up to December 2022. Although the price of wood remained high, there appeareda move of the price declining due to a slackening in the supply-demand situation resulting from the decrease in
housing starts.
Under these circumstances, we strove to reinforce not only the supply chain but also our salesforce to secure
excellent customers with whom we can trade at a fair selling prices, which led to a year-on-year improvement inearnings. Sales of the construction material sales segment in the consolidated cumulative third quarter of fiscal
2023 under review increased by 20.7% year-on-year to ¥3,113 million, with a segment profit of ¥379 million, an
increase of 18.6% year-on-year.
c. Real Estate Leasing
In the office leasing market in Tochigi Prefecture, the occupancy ratio of properties far from railway stations
stayed low for a longer period as the development of the east entrance of JR Utsunomiya Station progressed andlarge-scale properties were put on the market. In the parking market, the operational rate of pay-by-the-hourparking lots remained on a recovery trend due to the revitalization of social and economic activities.
Under these circumstances, both sales and profit increased due to lower office vacancies, lower renovation
expenditure than the previous year and a recovery in the operation rates at pay-by-the hour parking lots in busy
areas where demand had recovered slowly compared to the pre-pandemic years despite a decrease in the possible
number of cars parked due to the sale of owned properties. As a result, sales in the real estate leasing segment in
the consolidated cumulative third quarter of fiscal 2023 under review were ¥223 million, an increase of 6.9%
year-on-year, with a segment profit of ¥128 million, an increase of 36.3% year-on-year.
(2) Explanation regarding Financial Position
As of the end of the third quarter of consolidated fiscal 2023, consolidated total assets had risen to ¥69,282
million, an increase of ¥8,380 million compared to the end of the previous consolidated fiscal year. This is
primarily the result of an increase in inventories and property, plant and equipment caused by the acquisition of
housing lots to reflect the expanded area of the Real Estate Sales Business and the purchase of properties forleasing with an eye to redirecting them to housing lots in the future.
Liabilities stood at ¥43,663 million, an increase of ¥7,421 million compared to the end of the previous
consolidated fiscal year. This was mainly due to an increase in loans payable for the acquisition of housing lots in
the real estate sales segment.
Total net assets stood at ¥25,619 million as of December 31, 2022. This represents an increase of ¥959
million from the balance as of March 31, 2022. This was due to an increase due to the recording of net income
attributable to owners of the parent despite a decrease caused by the payment of dividends.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There have been no changes from the consolidated financial forecasts announced on May 9, 2022.

― 3 ―2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2022(As of March 31, 2022)

Third Quarter of FY2023(As of December 31, 2022)

AssetsCurrent assets
Cash and deposits

11,098,044

8,115,766

702,666

708,097

8,129,757

10,848,854

7,246

47,466

Real estate for sale in process

26,090,400

33,317,742

Merchandise and finished goods

350,922411,072

Raw materials and supplies

279,751

191,546

1,100,457

1,348,104(4,398)(3)

47,754,848

54,988,648

Notes and accounts receivable – trade andcontract assets
Real estate for sale
Costs on uncompleted construction contracts

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

3,784,259

3,862,229

Machinery, equipment and vehicles, net

26,75921,048Tools, furniture and fixtures, net

55,59360,000Land

6,063,224

7,261,402

Leased assets, net

92,41985,637

Construction in progress

19,064－

10,041,319

11,290,318

1,028,445

925,600

51,28470,573

1,079,729

996,174

143,000

182,000

Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

14,601

9,454

Deferred tax assets

647,621580,806

1,175,569

1,185,260

Other
Total investments and other assets

1,980,792

1,957,520

13,101,841

14,244,014

Bond issuance costs

45,28650,110Total deferred assets

45,28650,11060,901,976

69,282,774

Total non-current assets
Deferred assets

Total assets― 4 ―(Thousands of Yen)FY2022(As of March 31, 2022)

Third Quarter of FY2023(As of December 31, 2022)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,870,228

3,653,070

Short-term loans payable

13,082,700

16,574,000

Current portion of bonds

1,000,000

1,500,000

Current portion of long-term loans payable

2,604,311

3,257,765

Lease obligations

34,20135,764

Income taxes payable

899,770

177,365

Provision for warranties for completed construction

185,469

181,058

Other

1,105,187

984,714

Total current liabilities

22,781,868

26,363,737

Bonds payable

2,300,000

2,600,000

Long-term loans payable

9,820,280

13,260,989

Non-current liabilities

Lease obligations

67,64758,818Provision for directors' retirement benefits

251,695

250,249

Net defined benefit liability

904,811

991,669

Other

115,459

137,551

13,459,893

17,299,278

36,241,762

43,663,015

Capital stock

2,077,500

2,077,500

Capital surplus

2,592,335

2,618,236

Retained earnings

20,718,007

21,492,644

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Treasury shares(813,488)(682,422)

24,574,354

25,505,958

Valuation difference on available-for-sale securities

18,00057,000Total accumulated other comprehensive income

18,00057,00067,86056,80024,660,214

25,619,758

60,901,976

69,282,774

Total shareholders' equity
Accumulated other comprehensive income

Subscription rights to shares
Total net assets
Total liabilities and net assets― 5 ―(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated cumulative third quarter)(Thousands of Yen)
Nine months ended
December 31, 2021
(From April 1, 2021 to
December 31, 2021)

Nine months ended
December 31, 2022
(From April 1, 2022 to
December 31, 2022)

Net sales

40,507,662

40,689,563

Cost of sales

32,618,997

33,276,391

Gross profit

7,888,665

7,413,172

Selling, general and administrative expenses

4,819,158

4,827,086

Operating income

3,069,506

2,586,086

740

99

Non-operating income
Interest income
Dividends income

5,611

5,611

Commission

24,25023,419Other

20,25135,437

Total non-operating income

50,85364,568178,263

190,421

Commission for syndicate loan

8,974

11,344Other

19,904

15,629Total non-operating expenses

207,143

217,395

2,913,216

2,433,259

18,62095,810－2,220

18,62098,030Loss on retirement of non-current assets

16,124

10,827

Loss on cancellation of lease contracts

358－

Total extraordinary loss

16,482

10,827

Net income before income taxes

Non-operating expenses
Interest expenses

Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary loss

2,915,354

2,520,461

Income taxes – current

930,089

776,059

Income taxes – deferred

22,58566,814

Total income taxes

952,675

842,874

Net income

1,962,679

1,677,587

Net income attributable to owners of the parent

1,962,679

1,677,587― 6 ―(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative third quarter)(Thousands of Yen)
Nine months ended
December 31, 2021
(From April 1, 2021 to
December 31, 2021)

Nine months ended
December 31, 2022
(From April 1, 2022 to
December 31, 2022)

1,962,679

1,677,587

Valuation difference on available-for-sale securities(12,000)

39,000Total other comprehensive income(12,000)

39,0001,950,679

1,716,587

1,950,679

1,716,587－－

Net income
Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests― 7 ―(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in the Amount of Shareholders' Equity)
Not applicable.
(Additional Information)(Accounting Estimates concerning the Impact of COVID-19)
Note that there has been no significant change to our assumptions concerning the impact of COVID-19 that
we described as additional information in our securities report for fiscal 2022.
(Transactions for Distributing the Company's Own Stock to Employees, etc. through Trusts)
The Company has adopted the "trust-type employee stock holding incentive plan (E-Ship®)" (hereinafterreferred to as "the Plan") for the purpose of providing its employees with incentives to enhance the corporate
value of the Company on a medium-to long-term basis.
(1) Overview of transactions
The Plan is an incentive plan for all employees who are members of "the Grandy House Employee Stock
Holding Partnership" (hereinafter referred to as "the Stock Partnership"). The Company has established the"Grandy House Employee Stock Holding Partnership Exclusive Trust" (hereinafter referred to as "the Trust") in atrust bank. The Trust will acquire in advance after its establishment the number of Grandy House shares to be
expected to be acquired by the Stock Partnership over a six-year period. At a later date, the Trust will sell its
holdings of Grandy House shares to the Stock Partnership on a continual basis. If an amount equivalent to thegains from sale of shares is accumulated at the end of the term of the Trust, the relevant amount equivalent to thegains from the sale of shares will be distributed as residue assets to those who satisfy the criteria of beneficiaries.
The Company warranties the repayment of loans payable for the Trust to acquire shares of the Company.
Therefore, if an amount equivalent to the loss from sale of shares accumulates due to a decline in the price ofshares of the Company, causing a debt equivalent to a loss from sale of the relevant shares remains in the Trust at
the end of the term of the Trust, the Company will assume the repayment of the relevant remaining borrowing.
(2) Grandy House's own company stock remaining in the TrustGrandy House's own company stock remaining in the Trust is recorded as treasury shares in net assets inaccordance with the book value (excluding the amount of incidental expenses) in the Trust. The book value andthe number of the relevant treasury shares are ¥688,938 thousand and 1,194,000 shares for the previous
consolidated fiscal year, and ¥573,076 thousand and 993,200 shares for the consolidated third quarter of fiscal
2023 under review.
(3) The book value of loans payable recorded by the application of the gross method
The previous consolidated fiscal year: ¥690,870 thousand
The consolidated third quarter of fiscal 2023 under review: ¥572,180 thousand― 8 ―(Segment Information)
I. The cumulative nine months ended December 31, 2021 (April 1, 2021 to December 31, 2021)
1. Information concerning the amounts of net sales and profit or loss by reportable segment
Reportable Segment

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

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

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

37,718,493

2,579,884

209,284

40,507,662—

40,507,662

37,5302,888,881

60,923

2,987,334(2,987,334)—

37,756,023
2,508,652

5,468,766
319,668

270,207
93,931

43,494,997
2,922,252(2,987,334)(9,035)40,507,662
2,913,216

Notes: 1 Adjustments of segment profit (−¥9,035 thousand) are eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.
II. The cumulative nine months ended December 31, 2022 (April 1, 2022 to December 31, 2022)
1. Information concerning the amounts of net sales and profit or loss by reportable segment
Reportable Segment

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

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

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

37,352,449

3,113,473

223,640

40,689,563—

40,689,563

40,1403,689,595

61,355

3,791,090(3,791,090)—

37,392,589
1,977,121

6,803,068
379,176

284,995
128,041

44,480,654
2,484,340(3,791,090)(51,081)

40,689,563
2,433,259

Notes: 1 Adjustments of segment profit (−¥51,081 thousand) are eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

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

― 9 ―