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

Consolidated Financial Report
For the First Quarter of Fiscal 2015 Ending June 30, 2014 (Japanese GAAP)
August 4, 2014
Tokyo Stock Exchange
http://www.grandy.co.jp

Company Name:Grandy House Corporation
Stock Exchange Listing:
Securities Code:
8999
URL
Representative:
Hiroyuki Murata, President
Inquiries:
Atsuo Saito, Senior Managing Director
Scheduled date of quarterly securities report filing:
August 7, 2014―
Scheduled date of dividend payment commencement:
Preparation of quarterly supplementary explanatory materials:
None
Quarterly results briefing held:
NoneTEL: +81-28-650-7777(Figures are rounded down to the nearest million yen unless otherwise stated)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2015 (April 1,2014 to June 30, 2014)(Percentage figures show the year-on-year increase (decrease))(1) Consolidated Operating Results
Three months ended
June 30, 2014
Three months ended
June 30, 2013

Net Sales(¥ million)

Note: Comprehensive income%

Operating Income(¥ million)%

Ordinary Income(¥ million)%

Net Income(¥ million)%

8,041(11.6)

426(43.9)

459(41.8)

271(43.1)

9,097

11.7

759

14.4

789

19.3

477

24.3

Three months ended June 30, 2014: ¥263 million (-44.9%)

Net Income per Share(¥)

Three months ended
June 30, 2014
Three months ended
June 30, 2013

Three months ended June 30, 2013: ¥477 million (24.3%)

Net Income per Share(Diluted)
(¥)

9.44

―

16.60

―

(2) Consolidated Financial Position
Total Assets(¥ million)

June 30, 2014
March 31, 2014
Reference: Shareholders’ equity

34,572
33,524

13,68813,655

Shareholders’ Equity Ratio
%
39.6
40.7

Net Assets per Share(¥)
475.68474.53June 30, 2014: ¥13,688 million March 31, 2014: ¥13,655 million

2. Dividends

Fiscal 2014
Fiscal 2015
Fiscal 2015 (Forecast)

Net Assets(¥ million)

Annual Dividend per Shares
1Q-End2Q-End3Q-EndPeriod-End

Total

(¥)

(¥)
0.00

(¥)

―

(¥)
8.00

(¥)
8.00

―

8.00

8.00

――

0.00

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

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

Interim Period
Full Fiscal YearNet Sales(¥ million)%
19,0003.1
40,000
7.4(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

Note: Revisions to the most recently announced financial forecasts: None* 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) Adoption of specific methods for preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and restatements
1) Changes in accounting policies in connection with revision to accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatements:(4) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding as of theJune 30, 2014
period-end (including treasury shares)
2) Number of treasury shares
June 30, 2014
3) Average number of shares issued and outstanding for
Three months
the periodended June 30,
2014

None
None
None
None

30,823,200 shares March 31, 201430,823,200 shares

2,046,198 shares March 31, 2014

2,046,198 shares

Three months
28,777,002 shares ended June 30,
2013

28,777,002 shares* Disclosure concerning the implementation status of quarterly review proceduresThis Quarterly Consolidated Financial Report is exempt from the quarterly review procedures required by the Financial Instruments and Exchange Act ofJapan. At the time of this report’s disclosure, the quarterly review process for quarterly consolidated financial statements under the Financial Instruments
and Exchange Act has not been completed.
* Explanation concerning the appropriate use of forecasts and other special instructions
The forecast data presented in this report are based on currently available information and contain a significant number of uncertainties. Actual results may
differ from forecast data due to changes in business conditions.

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

1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
During the three months ended June 30, 2014, the Japanese economy continued to see a moderate recovery
buoyed by continuing improvement in the employment situation and maintaining of business sentiment at afavorable level, albeit with a drop in consumer spending and housing investment following the increased demand
experienced prior to the increase in Japanese consumption tax.
In the housing sector, home orders were sluggish during the period under review—new housing starts in andafter February 2014 fell for both custom-built and built-for-sale houses on a year-on-year basis. This decline wasmainly attributed to a pullback following the demand increase, despite there being measures implemented in order tomitigate the burden of the consumption tax increase, such as expanded income tax credit for housing loans and aprovision of benefits for housing acquisition (housing allowances).
Under these circumstances, the Grandy House Group worked diligently to expand its operating base andincrease market share in line with its medium-term target to “further strengthen the Group’s core business (realestate sales).” Orders for new homes, the main business of the Group, were robust in key areas—Gunma prefecturein which a branch opened in March 2014 and Chiba prefecture, particularly in Kashiwa City, which we position as anew and priority area. However, consumers became more cautious in making home-buying decisions after the tax
increase in spite of their firm eagerness to buy homes, resulting in a slowdown in the growth of orders in operatingareas as a whole.
As a result of these factors, the Grandy House Group’s consolidated results for the first quarter of Fiscal 2015
were as follows. Net sales were ¥8,041 million, down 11.6% from the same period of the previous fiscal year;
operating income fell to ¥426 million, a decline of 43.9%; ordinary income was ¥459 million, a decline of 41.8%;
and net income totaled ¥271 million, a decline of 43.1%.
Results by business segment are presented as follows.
Real Estate Sales
In the new home sales business, we focused on sales promotion activities with the aim of expanding ouroperating base and increasing market share. The activities included the holding of promotional campaigns, such as a
housing fair during Golden Week holidays and private viewing of model houses, and contributed to a favorable
growth in orders in Chiba Prefecture as a new and priority area and in Gunma Prefecture, in which a branch opened
in March 2014. However, overall operating areas witnessed a pullback following the surge in demand and cautiousconsumer behaviors—namely, they took longer to make purchasing decisions. A similarly cautious trend continued
in the existing home sales business as well. As a result, new home sales for the first quarter of Fiscal 2015 weredown 27 units at 250 units and existing home sales were down 18 units at 25 units on a year-on-year basis.
Accounting for each of these factors, revenues in the real estate sales segment declined 13.4% year-on-year to¥7,310 million. Segment profit lowered to ¥432 million, down 42.9% from the same period of the previous fiscalyear.
Construction Material Sales
In the construction material sales segment, we worked hard to improve profitability through careful sales
targeting of customers and focused on selling processed construction materials in addition to pre-cut materials amid
the harsh circumstances due to a drop in housing starts caused by a pullback following the increased demand andsustained high timber prices.
As a result from these initiatives taken, revenues in the construction material sales segment increased 11.0%
year-on-year to ¥661 million. Segment profit rose ¥44 million, up 42.3% from the same period of the previous fiscalyear.
Real Estate Leasing
In the real estate leasing segment, although there was no acquisition or sale of leasing properties during theperiod under review, we continued to work to increase the occupancy rate of existing properties by obtaining newclients and discouraging existing tenants from leaving. Specific approaches include the offering of flexible pricing
schemes after analyzing competitors’ prices.
As a result, revenues in the real estate leasing segment totaled ¥69 million, up 7.9% from the same period ofthe previous fiscal year. Segment profit rose 14.1% to ¥39 million.

―2―(2) Explanation regarding of Financial Position
Total assets stood at ¥34,572 million as of June 30, 2014, up ¥1,047 million compared with the end of theprevious fiscal year. This upswing was mainly due to an increase of ¥1,069 million in the current assets reflecting
the higher balance of land for sale (real estate for sale) as of June 30, 2014 resulted from a slowdown in the growthof orders after the tax increase as well as the pullback following the demand surge experienced prior to the tax rise.
Total liabilities grew ¥20,884 million as of June 30, 2014, up ¥1,014 million compared with the end of theprevious fiscal year. This increase mainly consisted of the rise in total current liabilities (up ¥920 million), whichreflected the higher levels of short-term loans payable as of June 30, 2014 accompanying the higher balance of landfor sale (real estate for sale).
Total net assets stood at ¥13,688 million as of June 30, 2014. This represents an increase of ¥33 million fromthe balance recorded as of March 31, 2014. After accounting for the payment of dividends, this increase was largely
attributable to net income for the three months under review.
(3) Explanation regarding Future Prospects Including Consolidated Financial Forecasts
There is no change to financial forecasts announced on May 7, 2014
2. MATTERS CONCERNING SUMMARY INFORMATION (Notes)(1) Changes of 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 Restatements of Revisions
Not applicable.

―3―3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2014(As of March 31, 2014)

First Quarter of FY2015(As of June 30, 2014)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade

5,562,541
584,984

5,377,395
623,446

Real estate for sale
Costs on uncompleted construction contracts

8,903,433
9,388

10,870,012
11,877

Real estate for sale in process
Merchandise and finished goods

7,373,275174,064

6,461,676
205,179

Raw materials and supplies
Deferred tax assets

138,064
126,944

118,295
82,408

Other
Allowance for doubtful accounts

321,913(4,196)

514,767(4,973)23,190,415

24,260,087

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

3,244,425
12,0093,217,064
11,206

Tools, furniture and fixtures, net
Land42,0385,817,230

40,246
5,817,230

141,378—

128,127
17,957

9,257,082

9,231,833

68,487

69,196

Investment securities
Long-term loans receivable

744,408
41,707

731,414
41,250

Deferred tax assets
Other100,514
155,166

113,833
157,748

Allowance for doubtful accounts(32,818)(32,654)

Total current assets
Non-current assets
Property, plant and equipment

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

Total investments and other assets
Total non-current assets
Total assets―4―

1,008,979

1,011,592

10,334,548

10,312,622

33,524,964

34,572,710

(Thousands of Yen)FY2014(As of March 31, 2014)

First Quarter of FY2015(As of June 30, 2014)

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

2,636,832
13,347,080

2,773,773
14,580,900

Current portion of long-term loans payable
Lease obligations

410,495
49,770427,224
47,921

Income taxes payable
Provision for warranties for completed construction

735,391
63,040104,475
47,951

Other

666,258

847,563

17,908,869

18,829,808

1,461,426
103,482

1,542,936
89,894

Provision for directors’ retirement benefits
Net defined benefit liability

45,166286,655

48,929311,125

Other

63,82561,446

Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations

Total non-current liabilities

1,960,555

2,054,331

19,869,425

20,884,140

Shareholders’ equity
Capital stock

2,077,500

2,077,500

Capital surplus
Retained earnings

2,205,165
9,712,087

2,205,165
9,753,518

Total liabilities
Net assets

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets―5―(351,814)(351,814)

13,642,938

13,684,369

12,6004,200

12,6004,200

13,655,539

13,688,569

33,524,964

34,572,710

(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of Yen)
Three months ended June 30,
2013 (From April 1, 2013

Three months ended June 30,
2014 (From April 1, 2014

to June 30, 2013)

to June 30, 2014)

Net sales

9,097,354

8,041,238

Cost of sales

7,364,033

6,612,488

Gross profit

1,733,320

1,428,749

Selling, general and administrative expenses

973,487

1,002,469

Operating income

759,833

426,279

151

131

Dividend income
Operations consignment fee

138
47,8772,141
49,408

Office work fee
Other37,8495,961

29,878
19,958

Total non-operating income

91,978

101,518

62,75768,75562,75768,755

789,054459,042

3,346

2,494

—

1,143

3,346

3,638

Income before income taxes and minority interests

785,708

455,404

Income taxes – current
Income taxes – deferred

273,605
34,330147,940
35,816

Total income taxes

307,936

183,757

Income before minority interests

477,772

271,647

Net income

477,772

271,647

Non-operating income
Interest income

Non-operating expenses
Interest expenses
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on cancellation of leases
Total extraordinary loss

―6―

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Three months ended June 30,
2013 (From April 1, 2013

Three months ended June 30,
2014 (From April 1, 2014

to June 30, 2013)

to June 30, 2014)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income

477,772

271,647—(8,400)—(8,400)Comprehensive income

477,772

263,246

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

477,772

263,246——

Comprehensive income attributable to minority interests―7―(3) Notes to Quarterly Consolidated financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in Amount of Shareholders’ Equity)
Not applicable.
(Segment and Other Information)
Segment Information
I. The first quarter of the fiscal year ended March 31, 2014 (April 1, 2013 to June 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
Quarterly
Consolidated
Statements ofIncome(Note 2)

9,097,354－

9,097,354

754,478(754,478)－

84,271

9,851,832(754,478)

9,097,354

34,544

823,194(34,139)

789,054

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

8,437,474595,503

64,376－

734,583

19,894

8,437,474

1,330,086

757,669

30,979Total

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

1 Adjustments of segment profit (¥-34,139 thousand) are eliminations of intersegment transactions.
2 Segment profit has been adjusted to ordinary income described in quarterly consolidated statements of income.

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

II The first quarter of the fiscal year ending March 31, 2015 (April 1, 2014 to June 30, 2014)
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
Quarterly
Consolidated
Statements ofIncome(Note 2)

8,041,238－

8,041,238

16,430751,426(751,426)－

1,396,097

85,901

8,792,664(751,426)

8,041,238

44,07039,399516,151(57,108)

459,042

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

7,310,665

661,101

69,471－

734,996

7,310,665
432,681Total

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

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

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

―8―