Consolidated Financial Report
For the Second Quarter of Fiscal 2021 Ending March 31, 2021 (Japanese GAAP)
Company Name:Grandy House Corporation
Stock Exchange Listing:
Securities Code:
8999
URL:
Representative:
Yasuro Hayashi, President
Inquiries:
Takanori Saito, Administration Manager
Scheduled date of quarterly securities report filing:
November 12, 2020
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
Yes
Quarterly results briefing held:
None

November 9, 2020
Tokyo Stock Exchange
https://www.grandy.co.jp
TEL: +81-28-650-7777(Figures are rounded down to the nearest million yen unless otherwise stated.)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2021
(April 1, 2020 to September 30, 2020)(1) Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Net Sales
Six months ended
September 30, 2020
Six months ended
September 30, 2019
Note: Comprehensive income

Operating Income

Net Income Attributableto Owners of the Parent

Ordinary Income(¥ million)%(¥ million)%(¥ million)%(¥ million)%

21,820(4.2)

466(62.8)

536(60.0)

323(62.9)

22,7697.1

1,254(14.4)

1,341(12.5)

871

5.0

Six months ended September 30, 2020: ¥332 million (-61.6%)
Six months ended September 30, 2019: ¥865 million (5.0%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Six months ended
September 30, 2020
Six months ended
September 30, 2019

11.12

―

30.19

29.80

(2) Consolidated Financial Position

September 30, 2020
March 31, 2020
Reference: Shareholders' equity

Total Assets(¥ million)
58,84055,986
September 30, 2020:
March 31, 2020:

Net Assets(¥ million)
21,80622,143¥21,636 million¥21,972 million

Shareholders' Equity Ratio
%
36.8
39.2

Net Assets per Share(¥)
744.25755.83

2. Dividends
1Q-End2Q-End(¥)――

Fiscal 2020
Fiscal 2021
Fiscal 2021 (Forecast)

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

Period-End

Total

(¥)
23.00

(¥)
23.00

24.00

24.00

Note: Revisions to the most recently announced forecast of cash dividends in the current quarter: Yes• Breakdown of the dividend forecast for fiscal 2021: Ordinary dividend of ¥14.00 and commemorative dividend of ¥10.00• For additional details, please refer to the "Notice of Adjustment of the Financial Forecast, Dividend Forecast, and Numerical Targets
in the Medium-Term Business Plan" (Japanese language only), which was announced today.

3. Consolidated Financial Forecasts for Fiscal 2021 (April 1, 2020 to March 31, 2021)
Net Sales
Full Fiscal Year(¥ million)
48,500Operating Income%
6.5(¥ million)
1,700%(20.6)(Percentage figures show the year-on-year increase (decrease).)Net Income
Ordinary Income
Attributable to
Net Income per ShareOwners of the Parent(¥ million)%(¥ million)%(¥)
1,800 (22.1)
1,200 (15.1)
41.28

Note: Revisions to the most recently announced financial forecasts in the current quarter: Yes• For additional details, please refer to the "Notice of Adjustment of the Financial Forecast, Dividend Forecast, and Numerical Targets
in the Medium-Term Business Plan" (Japanese language only), which was announced today.

* Notes(1) Significant changes to subsidiaries during the period(Transfers of specific subsidiaries with changes in the scope of consolidation): None
Newly included: —Excluded: —(2) Adoption of specific methods for preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting estimates, and restatement of revisions
1) Changes in accounting policies due to revision to accounting standards, etc.: None
2) Changes in accounting policies other than 1):
None3) Changes in accounting estimates:
None4) Restatements:
None(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

September 30, 2020

30,823,200 shares

March 31, 2020

30,823,200 shares

September 30, 2020
Six months ended
September 30, 2020

1,752,445 shares

March 31, 2020
Six months ended
September 30, 2019

1,752,445 shares

29,070,755 shares

28,879,384 shares*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 ............................................ 4
2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ................................................. 5(1) Quarterly Consolidated Balance Sheets................................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income........................................................... 7(Quarterly Consolidated Statements of Income)(Consolidated cumulative second quarter)........................................................................................................7(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative second quarter)........................................................................................................8(3) Quarterly Consolidated Statements of Cash Flows ................................................................................................. 9(4) Notes to Quarterly Consolidated Financial Statements ......................................................................................... 10(Notes on Going Concern Assumptions) ...............................................................................................................10(Notes on Significant Changes in the Amount of Shareholders' Equity) ...............................................................10(Segment Information) ..........................................................................................................................................10― 1 ―1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
During the first six months of the consolidated fiscal year under review, the Japanese economy recorded its largest
ever postwar negative growth in real GDP in the April-June 2020 period, marking three consecutive terms of negative
growth. This was caused by measures implemented in response to the spread of COVID-19, such as voluntary restraints
on going out and corporate activities. Confidence in the Japanese economy remains weak, although economic activities
and personal consumption have shown some signs of recovery since the declaration of a state of emergency was liftedin May this year.
In the housing sector, the business environment has also been in a severe situation due to restrictions on businessactivities, voluntary restraints on customers going out, and other measures that have been implemented, particularly
those introduced during the period of a state of emergency. Furthermore, the number of new housing starts dropped
significantly compared to the previous fiscal year due to concerns about issues such as a recurrence of infections anddeterioration of the employment situation. However, new trends are also emerging, including increased customer
interest in detached houses due to factors such as the need to “Avoid the Three Cs” and the expansion of working fromhome.
Under these circumstances, the Grandy House Group has continued its efforts to build a business foundation thatcan respond to an emergency by not only continuing infection control measures, but also creating a sales structure thatutilizes IT technologies and a production system that responds flexibly to changes in the environment, while placing
top priority on the safety of its customers and the health of its employees.
With regard to new home sales, one of our core operations, we have worked to enhance our online sales activities
while taking thorough measures against infections, and increase sales by continuing to reinforce the sales structure in
Saitama and Kanagawa Prefectures, where we had expanded our sales areas in the previous fiscal year. In existinghome sales, we endeavored to secure inventory with a view to expanding the number of completed home sales amid
worsening purchasing environment, such as suspension of auction bidding.
Thanks to these efforts, the number of orders received for new homes recovered to a record high level in the second
quarter on a quarterly basis and increased year-on-year in the first half of fiscal 2021 as well. However, both the numberof completed new and existing home sales and net sales decreased year-on-year. Profit decreased year-on-year due toa decrease in net sales and other factors, such as a decline in the gross margin ratio coming from tighter inventory
controls, and an increase in selling, general and administrative expenses and in the amortization cost of goodwill of
the subsidiary acquired in the previous fiscal year.
As a result of these factors, the Grandy House Group's consolidated cumulative operating results for the second
quarter of fiscal 2021 were as follows: Net sales were ¥21,820 million, a decrease of 4.2% year-on-year; operating
income decreased to ¥466 million, a decrease of 62.8% year-on-year; ordinary income was ¥536 million, a decreaseof 60.0% year-on-year; and net income attributable to owners of the parent totaled ¥323 million, a decrease of 62.9%
year-on-year.
Operating results by business segment are presented as follows.
a) Real Estate Sales
In the new home sales, we have continued to endeavor to increase non-contact sales activities, where properties are
introduced online, while also offering inspections of newly completed homes by appointment only in order to prevent
the COVID-19 infection thoroughly. In Saitama Prefecture, where we added as a new sales area in the previous fiscal
year, we strengthened our advertising activity to improve our brand recognition and increased the number of sales
personnel. Meanwhile, our subsidiary in Kanagawa Prefecture, which we acquired in the previous fiscal year, actively
purchased select housing lots to expand sales.
In terms of products, we have continued to differentiate ourselves from our competitors by providing high valueadded products, including the creation of a townscape that excels in comfort and safety in consideration of families
with children as well as houses with enhanced countermeasures against natural disasters such as typhoons and flooding.
We have also proposed a new lifestyle aimed at balancing life and work in response to changing housing environment
needs to cope with the Corona (COVID-19) related crisis. We did this through initiatives such as offering homesfeaturing multipurpose spaces that can be used for working from home as well as homes situated in "outer urban city"
locations featuring a spacious living environment and good access to the Central Business District (CBD).

― 2 ―Through these efforts, the number of orders received for new homes recovered to a record high level in the second
quarter on a quarterly basis and increased over the same period of the previous year in the first half of fiscal 2021 as
well. However, the number of completed home sales in the consolidated cumulative second quarter of fiscal 2021 underreview was 642 (a decrease of 41 homes year-on-year), which was partly due to the timing of the delivery of completed
homes for orders received during this period.
In existing home sales, we have continued our efforts to build up our inventory with a view to expanding thenumber of completed home sales. However, both purchasing and sales activities have been affected by the spread of
COVID-19, including restraints on customers going out and the suspension of auction bidding through July 2020, andtherefore the number of completed home sales in the consolidated cumulative second quarter of fiscal 2021 underreview was 67 (a decrease of 13 homes year-on-year).
As a result, sales in the real estate sales segment in the consolidated cumulative second quarter of fiscal 2021
decreased by 4.2% year-on-year to ¥20,363 million. We had a segment profit of ¥385 million, a decrease of 67.7%
year-on-year.
b) Construction Material Sales
In the construction material sales, the situation continues to be challenging even though the number of new housing
starts for wooden houses, which had fallen considerably, has shown some signs of recovery. Wood material prices
continued to remain generally low, as exemplified by the fact that the distribution price of laminated wood for homes
fell to its lowest level in the last seven years.
Under these circumstances, the volume of construction material sales decreased year-on-year due to a decrease in
the number of new housing starts for wooden houses, though the Grandy House Group made efforts to focus on
securing orders for construction materials and ensuring thorough credit management.
As a result of these factors, sales in the construction material sales segment in the consolidated cumulative second
quarter of fiscal 2021 under review decreased by 4.5% year-on-year to ¥1,325 million. We had a segment profit of ¥61
million, a decrease of 1.4% year-on-year.
c) Real Estate Leasing
In the real estate leasing, tenants whose businesses had deteriorated either requested a reduction or exemption fromrent or went out of business due to the economic slowdown caused by the spread of COVID-19, thus the operation rate
exhibited a worsening trend in both the office building and parking markets.
The Grandy House Group continued to face severe conditions as well, despite an increase in the number ofproperties leased year-on-year, because it supported for rent reduction or exemption, and other measures for leased
offices and the like to prevent a deterioration in the operation rate, even though the operation rate for parking lots andothers, which had previously decreased due to voluntary restraints on going out, was gradually recovering.
As a result, sales in the real estate leasing segment in the consolidated cumulative second quarter of fiscal 2021
under review were ¥131 million, an increase of 1.7% year-on-year. We had a segment profit of ¥79 million, a decreaseof 11.1% year-on-year, mainly due to an increase in repair expenses.
(2) Explanation regarding Financial Positiona) Balance Sheet
As of the end of the second quarter of consolidated fiscal 2021 under review, total consolidated assets rose to¥58,840 million, an increase of ¥2,854 million compared to the end of the previous consolidated fiscal year. This wasprimarily due to an increase in cash and deposits caused by the acquisition of housing lots to reflect the expanded areaof the real estate sales business and having secured liquidity in hand.
Liabilities increased to ¥37,033 million, an increase of ¥3,190 million from the end of the previous consolidated
fiscal year. This was mainly due to an increase in short-term loans payable following the acquisition of housing lots
and having secured liquidity in hand.
Total net assets stood at ¥21,806 million as of September 30, 2020, down ¥336 million compared with the end of
the previous fiscal year. This was due to the payment of dividends despite the acquisition of net income attributable toowners of the parent.
b) Cash Flows― 3 ―Cash and cash equivalents (hereinafter, "cash flows") as of the end of the second quarter of consolidated fiscal
2021 increased by ¥2,801 million compared to the end of the previous consolidated fiscal year to ¥13,138 million as aresult of increased cash flows from operating and financing activities and decreased cash flows from investing activities.
The Company’s cash flows and their factors that cause them to fluctuate during the six months ended September
30, 2020, are as follows.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥612 million (a decrease of ¥2,704 million for the six
months ended September 30, 2019). This was mainly due to an increase in net income before income taxes despite anincrease in inventory resulting from the acquisition of housing lots and others.
(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to ¥229 million (a decrease of ¥2,060 million for the six months
ended September 30, 2019). This was mainly due to the acquisition of property, plant and equipment in relation to
the construction of new offices and others.
(Cash Flows from Financing Activities)
Net cash provided by financing activities amounted to ¥2,418 million (an increase of ¥4,754 million for the six
months ended September 30, 2019). This was mainly due to an increase in loans payable associated with theacquisition of housing lots and having secured liquidity in hand, despite the payment of dividends.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
Consolidated financial forecasts for fiscal 2021 had not been decided yet because it was difficult to reasonably
assess the impact that the COVID-19 outbreak would have on our financial results. However, we are announcing
these forecasts now as we calculate them based on the information that is currently available to us.
We are announcing our dividend forecast for fiscal 2021, which also had not been decided yet, as follows: anordinary dividend of ¥14.00 per share based on our financial forecasts, and a commemorative dividend of ¥10.00 per
share to commemorate the fact that fiscal 2021 is the 30th anniversary of the Company's foundation. Therefore, thedividend per share for fiscal 2021 under review will be ¥24.00. In terms of the number of dividend payments per
year, Grandy House plans to continue paying a single annual dividend to shareholders of record as of March 31 eachyear.
For additional details, please refer to the "Notice of Adjustment of the Financial Forecast, Dividend Forecast, andNumerical Targets in the Medium-Term Business Plan" (Japanese language only), which was announced today(November 9, 2020).

― 4 ―2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2020(As of March 31, 2020)

Second Quarter of FY2021(As of September 30, 2020)

10,351,397

13,152,543

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Real estate for sale607,498

510,722

16,799,116

18,385,880

7,198

6,034

Real estate for sale in process

13,899,184

12,867,461

Merchandise and finished goods

238,209

211,129

Costs on uncompleted construction contracts

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

113,833

102,381

1,039,355

627,792(4,934)(3,753)43,050,859

45,860,191

3,418,991

3,368,449

43,85537,204Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment

55,94955,133

6,002,977

6,019,598

105,071

91,304

8,411

144,692

9,635,258

9,716,382

1,302,697

1,234,134

102,366

92,827

1,405,064

1,326,962

329,226

337,073

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

35,91423,890

Deferred tax assets

457,977

477,064

1,045,367

1,057,502

Other
Allowance for doubtful accounts(9,148)(4,343)

Total investments and other assets

1,859,337

1,891,188

12,899,659

12,934,532

Bond issuance costs

35,59345,420Total deferred assets

35,59345,42055,986,112

58,840,144

Total non-current assets
Deferred assets

Total assets― 5 ―(Thousands of Yen)FY2020(As of March 31, 2020)

Second Quarter of FY2021(As of September 30, 2020)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,249,367

3,401,817

Short-term loans payable

22,218,600

23,705,700

Current portion of long-term loans payable

695,958

687,790

Current portion of bonds

21,00021,000

Lease obligations

37,32335,671

Income taxes payable

367,350

166,654

Provision for warranties for completed construction

70,87275,667

691,928

779,586

27,352,399

28,873,888

Bonds payable

1,824,000

2,313,500

Long-term loans payable

3,597,965

4,735,033

Lease obligations

77,60364,149Provision for directors' retirement benefits

203,579

202,120

Net defined benefit liability

720,938

779,031

Asset retirement obligations

12,296

12,331

Other

54,20353,4556,490,585

8,159,620

33,842,985

37,033,509

Capital stock

2,077,500

2,077,500

Capital surplus

2,291,248

2,291,248

Retained earnings

17,905,056

17,559,564

Other
Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity(301,297)(301,297)

21,972,507

21,627,015

Valuation difference on available-for-sale securities

―

9,000

Total accumulated other comprehensive income

―

9,000

170,620

170,620

22,143,127

21,806,635

55,986,112

58,840,144

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income

Subscription rights to shares
Total net assets
Total liabilities and net assets― 6 ―(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated cumulative second quarter)(Thousands of Yen)
Six months ended
September 30, 2019
(From April 1, 2019 to
September 30, 2019)

Six months ended
September 30, 2020
(From April 1, 2020 to
September 30, 2020)

Net sales

22,769,973

21,820,404

Cost of sales

18,829,008

18,400,203

Gross profit

3,940,965

3,420,200

Selling, general and administrative expenses

2,686,863

2,953,383

Operating income

1,254,102

466,817447

914

Non-operating income
Interest income

2,953

2,903

Operations consignment fee

116,731102,562

Office work fee

81,57374,584Other

12,78846,087

Total non-operating income

214,494

227,052

Dividends income

Non-operating expenses
118,138

145,239

Commission for syndicate loan

3,485

4,983

Other

5,545

7,112

Interest expenses

127,170

157,335

1,341,426

536,534

Gain on sales of non-current assets

―

3,802

Total extraordinary income

―

3,802

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss
Loss on sales of non-current assets

1,143

―

Loss on retirement of non-current assets

7,645

7,979

Loss on cancellation of lease contracts

9,460

913

Total extraordinary loss

18,2488,893

Net income before income taxes

1,323,177

531,443

Income taxes – current

456,875

228,005

Income taxes – deferred(5,466)(19,698)

Total income taxes

451,408

208,307

Net income

871,769

323,135

Net income attributable to owners of the parent

871,769

323,135― 7 ―(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative second quarter)(Thousands of Yen)
Six months ended
September 30, 2019
(From April 1, 2019 to
September 30, 2019)

Six months ended
September 30, 2020
(From April 1, 2020 to
September 30, 2020)

871,769

323,135

Valuation difference on available-for-sale securities(5,910)9,000

Total other comprehensive income(5,910)9,000

865,858

332,135

865,858

332,135――

Net income
Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests― 8 ―(3) Quarterly Consolidated Statements of Cash Flows(Thousands of Yen)

Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investment activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares in subsidiaries resulting from a change
in the scope of consolidation
Collection of loans receivable
Payments for guarantee deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from disposition of treasury shares due to exerciseof subscription rights to shares
Cash dividends paid
Repayments of lease obligations
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period― 9 ―Six months ended
September 30, 2019
(From April 1, 2019 to
September 30, 2019)

Six months ended
September 30, 2020
(From April 1, 2020 to
September 30, 2020)

1,323,177
127,478―

531,443
142,665
68,56317,000(1,458)

2,815

4,795

8,239
49,526(3,400)118,138
1,143
7,645(6,006)(3,579,822)
91,245(71,511)(1,914,330)
4,537(131,900)(663,182)(2,704,876)(5,985)58,092(3,818)145,239(3,802)
7,979
101,566(515,343)
152,450
565,226
1,247,613
4,925(148,151)(492,117)
612,270(128,406)
8,779(19,226)(196,290)
4,210(29,209)(1,887,100)―

589(32,300)(2,631)(2,060,295)

15,823(22,000)(2,308)(229,774)

2,809,300
2,500,000(327,891)
300,000(10,500)

1,487,100
1,480,000(351,100)
500,000(10,500)

18,250―(518,973)(15,913)4,754,272(10,900)
10,001,725
9,990,825(667,761)(19,089)
2,418,649
2,801,145
10,336,889
13,138,034

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in the Amount of Shareholders' Equity)
Not applicable.
(Segment Information)
Segment Information
I. The six months ended September 30, 2019 (April 1, 2019 to September 30, 2019)
1. Information concerning the amounts of net sales and profit or loss by reportable segment
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

Adjustments(Note 1)(Thousands of Yen)
Amount Recordedon Quarterly
Consolidated
Statements ofIncome (Note 2)

Net sales
Sales to external
21,252,775
1,387,481
129,716
22,769,973―
customers
Inter-segment sales or―
1,582,337
42,422
1,624,759(1,624,759)
transfers
Total
21,252,775
2,969,818
172,139
24,394,733(1,624,759)
Segment profit
1,193,408
62,22389,4401,345,073(3,646)
Notes: 1 The adjustments of segment profit (−¥3,646 thousand) is the eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

22,769,973―
22,769,973
1,341,426

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment(Significant changes in the amount of goodwill)In the second quarter of fiscal 2020, Grandy House Corporation acquired all shares in Plaza House Inc.
and Welcome House Inc., and the amount of goodwill in the real estate sales segment has been significantly
changed. Consequently, the amount of increase in goodwill resulting from the event was ¥1,376,460
thousand.
II. The six months ended September 30, 2020 (April 1, 2020 to September 30, 2020)
1. Information concerning the amounts of net sales and profit or loss by reportable segment
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

Adjustments(Note 1)(Thousands of Yen)
Amount Recordedon Quarterly
Consolidated
Statements ofIncome (Note 2)

Net sales
Sales to external
20,363,301
1,325,227
131,875
21,820,404―
customers
Inter-segment sales or―
1,268,061
40,223
1,308,284(1,308,284)
transfers
Total
20,363,301
2,593,289
172,098
23,128,689(1,308,284)
Segment profit
385,554
61,34579,506526,406
10,127
Notes: 1 The adjustments of segment profit (¥10,127 thousand) is the eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

21,820,404―
21,820,404
536,534

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

― 10 ―