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 Second Quarter of Fiscal 2016 Ending March 31, 2016 (Japanese GAAP)
November 9, 2015
Company Name:Grandy House Corporation
Stock Exchange Listing:Tokyo Stock Exchange
Securities Code:
8999
URL:
http://www.grandy.co.jp
Representative:
Hiroyuki Murata, President
Inquiries:
Atsuo Saito, Senior Managing Director
TEL: +81-28-650-7777
Scheduled date of quarterly securities report filing:
November 12, 2015
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
None
Quarterly results briefing held:
Yes (institutional investors and analysts)(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, 2016
(April 1, 2015 to September 30, 2015)(1) Consolidated Operating Results

Net Sales(Percentage figures show the year-on-year increase (decrease).)Net Income Attributableto Owners of the Parent
Operating Income
Ordinary Income
Company(¥ million)%(¥ million)%(¥ million)%(¥ million)%

20,659

15.2

1,367

36.0

1,418

34.5

894

39.6

17,931

(2.7)

1,005

(30.8)

1,054(30.2)

640(30.7)

Six months ended
September 30, 2015
Six months ended
September 30, 2014
Note: Comprehensive Income

Six months ended September 30, 2015: ¥892 million (43.0%)
Six months ended September 30, 2014: ¥623 million (−32.5%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Six months ended
September 30, 2015
Six months ended
September 30, 2014

31.07

—

22.26

—

Total Assets(¥ million)
37,80235,846

Net Assets(¥ million)
15,79515,084(2) Consolidated Financial Position

September 30, 2015
March 31, 2015
Reference: Shareholders' equity

Shareholders' Equity Ratio
%
41.5
41.9

Net Assets per Share(¥)
544.57521.57

September 30, 2015: ¥15,670 million
March 31, 2015: ¥15,009 million

2. Dividends
1Q-End2Q-End(¥)——

Fiscal 2015
Fiscal 2016
Fiscal 2016 (Forecast)

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

Period-End

Total
(¥)
8.00

(¥)
8.00

12.00

12.00

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

3. Consolidated Financial Forecasts for Fiscal 2016 (April 1, 2015 to March 31, 2016)

Net Sales

Full Fiscal Year(¥ million)
40,500%
8.1(Percentage figures show the year-on-year increase (decrease) for each corresponding period.)
Net Income
Attributable toOperating Income
Ordinary Income
Net Income per ShareOwners of the Parent
Company(¥ million)%(¥ million)%(¥ million)
%
(¥)
2,700
11.8
2,750
9.4
1,700
8.4
59.07

Note: Revisions to the most recently announced financial forecasts in the current quarter: None* Explanatory notes(1) Changes 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
September 30,
as of the period-end (including treasury shares) 2015
September 30,
2) Number of treasury shares
3) Average number of shares issued andoutstanding for the period

2015
Six months ended
September 30,
2015

Yes
None
None
None

30,823,200 shares

March 31, 2015

30,823,200 shares

2,046,245 shares

March 31, 2015

2,046,198 shares

28,776,955 shares

Six months ended
September 30,
2014

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 of Japan. 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 Important Subsidiaries during the Period ............................................................................................. 3(2) Adoption of Specific Methods for Preparation of the Quarterly Consolidated Financial Statements ..................... 3(3) Changes in Accounting Policies, Accounting Estimates, and Restatements ........................................................... 4
3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS ........................................................................ 5(1) Quarterly Consolidated Balance Sheets................................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............. 7(Quarterly Consolidated Statements of Income) .....................................................................................................7(Quarterly Consolidated Statements of Comprehensive Income)............................................................................8(3) Consolidated Statements of Cash Flows.................................................................................................................. 9(4) Notes to Quarterly Consolidated Financial Statements ......................................................................................... 10(Notes on Going Concern Assumptions) ...............................................................................................................10(Notes on Significant Changes in the Amount of Shareholders' Equity) ...............................................................10(Segment and Other Information)..........................................................................................................................10―1―

1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
During the six months ended September 30, 2015, the Japanese economy saw continuous improvement incorporate earnings and the employment situation on the back of the economic and monetary policies followed by
the government and the Bank of Japan. However, with elements of instability in overseas economies, including
economic slowdowns in China and emerging Asian countries, the Japanese economy, which was on a recovery
track, also became uncertain.
In the housing sector, the favorable circumstances surrounding home buying continued, owing to a series of
incentives offered by the government to stimulate housing demand and mortgage rates remaining at a low level.
As a result, an increase was observed in new housing starts for houses to let and home orders for detached houses(custom-built and built-for sale) also remained strong.
Under these circumstances, the Grandy House Group stood by its basic policy of "aiming for continuous
growth while reinforcing the core operation of property sales with an emphasis on new homes" and worked on
expanding its business. In new home sales, we strengthened our efforts to provide customers with informationfrom our "Grandy Plaza" showroom and in the key area stretching from southern Ibaraki Prefecture to Kashiwa
City in Chiba Prefecture, sales at the Moriya Branch (Moriya City, Ibaraki), established in April, showed steady
growth. As a result, a sales network along the Tsukuba Express line has been developed. In addition, we worked
on expanding our long-standing markets through launching the sale of housing lots in Hitachi City in Ibaraki
Prefecture and due to this orders increased strongly. In existing home sales, the Company continued to sufferfrom the severe conditions involved in ensuring overall number of good properties available across the entire
industry, although the situation regarding building up inventory began to improve.
As a result of these factors, the Grandy House Group's consolidated results for the second quarter(cumulative) of Fiscal 2016 were as follows. Net sales were ¥20,659 million, up 15.2% from the same period of
the previous fiscal year; operating income rose to ¥1,367 million, an increase of 36.0%; ordinary income was¥1,418 million, an increase of 34.5%; and net income attributable to owners of the parent company totaled ¥894
million, an increase of 39.6%.
Results by business segment are presented as follows.
Real Estate Sales
In the new home sales business, we held "Grandy Plaza Day" events at our "Grandy Plaza" locations (two in
Utsunomiya City, Tochigi and one in another city), whose establishment we have been promoting as bases for theprovision of information. Through such events, we provided information on a new subdivision in housing lots("Town Opening" event), and introduced to visitors our attractive "All-in-One Homes," which feature all-electricfacilities, exterior facilities, parking spaces for multiple vehicles and fitted lights in all rooms, as well as a safety
and security system through one-stop production and with a long-term warranty. In addition, we held "Whole
Townscape Viewing Tour" and "Model House Tour" events in all our areas, as part of our work to attract more
visitors. As a result of the above efforts, new home sales for the six months ended September 30, 2015, came to623 homes, up 63 from the same period last year. In existing home sales, circumstances continued to be tough as
we were affected by moves to sell off low-cost new homes, although the volume of inventories increased to thetarget level as a result of performance of Ibaraki Branch (Joso City, Ibaraki) which opened in the previous fiscal
year for the purpose of building up inventory. As a result, existing home sales for the six months ended
September 30, 2015, came out to be 59 homes, exactly the same as during the same period last year.
As a result of these factors, revenues in the real estate sales segment increased 15.3% year-on-year to ¥19,040
million. Segment profit rose to ¥1,266 million, up 33.4% from the same period of the previous fiscal year.
Construction Material Sales
New home orders for detached houses remained flat despite a moderately increasing trend after a pullback indemand following the hike in Japan's consumption tax. The prices of wood also remained flat on the back ofsluggish demand. Under such circumstances, we continued to work on expanding sales to excellent purchasers
through focusing on orders for non-residential buildings such as nursing care facilities, while securing orders andoutsourcing part of the production process. As a result, both sales and profit increased in the six months ended
September 30, 2015 from a year earlier.
As a result of these initiatives, revenues in the construction materials sales segment increased 16.4% year-onyear to ¥1,488 million. Segment profit rose to ¥94 million, up 21.9% from a year earlier.

―2―Real Estate Leasing
In the real estate leasing segment, as there was no material changes in the office market in and around
Utsunomiya City, Tochigi, which is our primary market, vacancy rates remained flat. Sales from this segment
saw a decline from the previous year, when we sold off some assets (one rental apartment building and one payby-the-hour parking lot), but segment profit increased as the profitability of existing real estate for leasing
improved.
As a result, revenues in the real estate leasing segment totaled ¥130 million, down 7.4% from a year earlier,while segment profit rose 0.6% to ¥86 million.
(2) Explanation regarding Financial Position
a. Balance Sheet
Total assets stood at ¥37,802 million as of as of September 30, 2015, up ¥1,956 million compared with theend of the previous fiscal year. This was largely due to an increase in current assets, which resulted from anaggressive effort in expanding its business mainly in real estate sales, including the expansion of our marketingarea.
Total liabilities grew ¥1,244 million compared with the end of the previous fiscal year to ¥22,006 million.
This was mainly due to an increase in current liabilities, which was brought about by an increase in short-termloans payable stemming from the increase in the amount of real estate for sale.
Total net assets stood at ¥15,795 million as of September 30, 2015. This represents an increase of ¥711
million from the balance recorded as of March 31, 2015. After accounting for the payment of dividends, thisincrease was largely due to the acquisition of net income attributable to owners of the parent company.
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 during
the six months ended September 30, 2015. As a result, the balance of cash and cash equivalents at the end of theperiod amounted to ¥7,112 million, up ¥498 million from the end of the previous fiscal year. The status of theCompany's cash flows and factors contributing to changes thereto for the six months ended September 30, 2015,
are as follows.
(Cash Flows from Operating Activities)
Net cash used in operating activities amounted to ¥161 million (increase of ¥256 million for the six months
ended September 30, 2014). This was mainly due to an increase in inventories and payment of income taxes, in spiteof an increase in net income before income taxes.
(Cash Flows from Investment Activities)
Net cash used in investment activities amounted to ¥377 million (decrease of ¥57 million for the six months
ended September 30, 2014). This was mainly attributable to cash outflow for the purchase of property, plant andequipment for the opening of Inter Park Branch (in Utsunomiya City, Tochigi) which also houses "Grandy Plaza," ashowroom where customers can experience the features of our houses, as well as for the purchase of investment
securities.
(Cash Flows from Financing Activities)
Net cash provided by financing activities amounted to ¥1,038 million (decrease of ¥26 million for the six
months ended September 30, 2014).This was mainly due to an increase in short-term loans payable accompanied by
the rise in inventories, in spite of dividend payments and repayment in long-term loans payable.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There is no change to financial forecasts announced on May 11, 2015.
2. MATTERS CONCERNING SUMMARY INFORMATION (Notes)(1) Changes of Important Subsidiaries during the Period
Not applicable.
(2) Adoption of Specific Methods for Preparation of the Quarterly Consolidated Financial Statements
Not applicable.
―3―(3) Changes in Accounting Policies, Accounting Estimates, and Restatements(Changes in accounting policies)(Application of accounting standards for business combinations, etc.)
We started to apply the "Revised Accounting Standard for Business Combinations" (ASBJ Statement No.
21, September 13, 2013), "Revised Accounting Standard for Consolidated Financial Statements" (ASBJ
Statement No. 22, September 13, 2013) and "Revised Accounting Standard for Business Divestitures" (ASBJ
Statement No. 7, September 13, 2013) in the three month period ended June 30, 2015, which have resulted inchanges in the way we present the net income, etc. for the quarter. To better reflect such changes, we alsochanged the way we present the consolidated financial statements for the six month period ended September
30, 2014.

―4―

3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2015(As of March 31, 2015)

Second Quarter of FY2016(As of September 30, 2015)

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

6,621,018

7,113,703

734,021697,599

10,704,928

11,294,851

6,251

9,885

6,688,779

7,276,168

Merchandise and finished goods

145,413

182,025

Raw materials and supplies

111,279

122,654

Deferred tax assets

122,613133,155

Other

401,046404,637

Allowance for doubtful accounts(5,344)(5,021)

25,530,008

27,229,659

3,083,718

3,159,380

8,785

11,123

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets

48,98649,3025,851,832

5,851,832

107,325

81,95558,652

8,591

9,159,301

9,162,186

67,616

69,068

767,434

979,047

Investments and other assets
Investment securities
Long-term loans receivable

19,87020,711

Deferred tax assets

108,270

121,559

Other

197,708

237,572

Allowance for doubtful accounts(3,816)(17,282)

Total investments and other assets

1,089,467

1,341,608

10,316,385

10,572,863

35,846,393

37,802,523

Total non-current assets
Total assets―5―

(Thousands of Yen)FY2015(As of March 31, 2015)

Second Quarter of FY2016(As of September 30, 2015)

Liabilities
Current liabilities
Accounts payable for construction contracts

2,772,752

2,895,868

Short-term loans payable

14,074,690

15,590,200

Current portion of long-term loans payable

400,508

356,808

Current portion of bonds

21,00021,000

Lease obligations

43,99939,886

Income taxes payable582,687

437,320

Provision for warranties for completed construction

51,16753,173

Other

721,606

668,982

18,668,411

20,063,238

129,000

118,500

Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable

1,409,644

1,240,112

Lease obligations

69,52545,952

Provision for directors' retirement benefits

71,20486,079Net defined benefit liability

358,010394,017

Asset retirement obligations

—

4,180

Other
Total non-current liabilities
Total liabilities

56,41654,444

2,093,801

1,943,286

20,762,212

22,006,524

2,077,500

2,077,500

Net assets
Shareholders' equity
Capital stock
Capital surplus

2,205,165

2,205,165

Retained earnings

11,049,455

11,713,328

Treasury shares(351,814)(351,831)

14,980,306

15,644,162

Valuation difference on available-for-sale securities

28,874

26,836

Total accumulated other comprehensive income

28,874

26,83675,000125,000

15,084,180

15,795,998

35,846,393

37,802,523

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 Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of Yen)
Six months ended
September 30, 2014
(From April 1, 2014 toSeptember 30, 2014)

Six months ended
September 30, 2015
(From April 1, 2015 to
September 30, 2015)

Net sales

17,931,904

20,659,159

Cost of sales

14,790,130

17,033,311

Gross profit

3,141,774

3,625,847

Selling, general and administrative expenses

2,136,051

2,258,056

Operating income

1,005,722

1,367,791

Non-operating income
Interest income

711

892

Dividends income

2,141

2,455

Operations consignment fee

99,626

110,742

Office work fee

65,18072,279Other

21,63812,678

Total non-operating income

189,298

199,047

140,565

148,697

Non-operating expenses
Interest expenses
Total non-operating expenses
Ordinary income

140,565

148,697

1,054,456

1,418,141

Extraordinary loss
Loss on sale of non-current assets

1,070

—

Loss on retirement of non-current assets

6,239

4,168

Loss on cancellation of lease contracts

1,143

—

Total extraordinary loss
Net income before income taxes
Income taxes – current
Income taxes – deferred

8,453

4,168

1,046,002

1,413,972

398,932

542,753

6,590(22,870)

Total income taxes

405,523

519,883

Net income

640,479

894,088

Net income attributable to owners of the parent company

640,479

894,088―7―

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Six months ended September 30,
2014 (From April 1, 2014
to September 30, 2014)
Net income

Six months ended September 30,
2015 (From April 1, 2015
to September 30, 2015)

640,479

894,088(16,801)(2,038)Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income(16,801)(2,038)623,677

892,050

623,677

892,050——

Comprehensive income attributable to:Comprehensive income attributable to owners of theparentComprehensive income attributable to noncontrolling interests―8―(3) Consolidated Statements of Cash Flows(Thousands of Yen)
Six months ended September 30, Six months ended September 30,
2014 (From April 1, 20142015 (From April 1, 2015
to September 30, 2014)
to September 30, 2015)
Net cash provided by (used in) operating activities
Net income before income taxes

1,046,002

1,413,972

Depreciation and amortization

117,361

119,935

Stock compensation expense
Increase (decrease) in provision for directors'
retirement benefits
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in allowance for doubtful accounts

25,00050,00011,187

14,875(13,831)

2,005

471

13,143

Increase (decrease) in retirement benefit obligations

43,12036,007

Interest and dividends income(2,853)(3,347)

Interest expenses

140,565

148,697

Loss (gain) on sale of non-current assets

1,070

—

Loss on retirement of non-current assets

6,239

4,168

7,517

22,951

Decrease (increase) in inventories(266,711)(1,228,932)

Increase (decrease) in notes and accounts payable-trade144,147

123,115

Decrease (increase) in notes and accounts receivable-tradeOther(17,727)(36,095)

Subtotal

1,241,559

680,497

2,853

3,300

Interest expenses paid

(140,718)(152,474)

Income taxes paid

(847,358)(693,232)

Net cash provided by (used in) operating activities

256,336(161,908)(57,192)(140,514)

Interest and dividends income received

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

37,757—Purchase of intangible assets(17,312)(2,400)Purchase of investment securities—(214,600)

Payments of loans receivable—(1,500)

Collection of loans receivable

1,217

658

Payments for guarantee deposits(29,010)(24,600)

Other payments(5,040)(6,540)

Other proceeds

12,00012,020Net cash provided by (used in) investing activities(57,580)(377,475)

Net increase (decrease) in short-term loans payable

69,8501,515,510

Proceeds from long-term loans payable

464,300—

Repayment of long-term loans payable(305,437)(213,232)

Redemption of bonds—(10,500)

Purchase of treasury shares

—

(16)

Cash dividends paid

(229,419)(229,705)

Repayments of lease obligations(25,401)(23,985)

Net cash provided by (used in) financing activities(26,108)

1,038,070

Net increase (decrease) in cash and cash equivalents

172,647498,685

Cash and cash equivalents at beginning of the period

5,554,541

6,614,018

Cash and cash equivalents at end of the period

5,727,189

7,112,703

Net cash provided by (used in) financing activities―9―(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in the Amount of Shareholders' Equity)
Not applicable.
(Segment and Other Information)
Segment Information
I. The six months ended September 30, 2014 (April 1, 2014 to September 30, 2014)
1. Information relating to the amounts of net sales, profit and loss by reportable segment
Reportable Segment

Net sales
Sales to outside
customers
Intersegment sales
and 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

16,511,905

1,279,122

140,876

17,931,904—

17,931,904—

1,479,029

35,8691,514,898(1,514,898)—

16,511,905
949,164

2,758,152
77,598

176,745
86,107

19,446,803
1,112,869(1,514,898)(58,413)

17,931,904
1,054,456

Total

Notes: 1 Adjustments of segment profit (−¥58,413 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 six months ended September 30, 2015 (April 1, 2015 to September 30, 2015)
1. Information relating to the amounts of net sales, profit and loss by reportable segment
Reportable Segment

Net sales
Sales to outside
customers
Intersegment sales
and 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

19,040,346

1,488,346

130,466

20,659,159—

20,659,159—

1,612,037

41,186

1,653,223(1,653,223)—

19,040,346
1,266,052

3,100,384
94,627

171,652
86,642

22,312,383
1,447,322(1,653,223)(29,181)

20,659,159
1,418,141

Total

Notes: 1 Adjustments of segment profit (−¥29,181 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.

― 10 ―