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 Third Quarter of Fiscal 2016 Ending March 31, 2016 (Japanese GAAP)
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:
February 12, 2016
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
None
Quarterly results briefing held:
None

February 8, 2016
Tokyo Stock Exchange
http://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 Third Quarter of the Fiscal Year Ending March 31, 2016
(April 1, 2015 to December 31, 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)%

30,785

13.8

2,086

29.3

2,162

28.3

1,365

32.1

27,056

(2.3)

1,613

(27.6)

1,685(27.0)

1,033(26.1)

Nine months ended
December 31, 2015
Nine months ended
December 31, 2014
Note: Comprehensive Income

Nine months ended December 31, 2015: ¥1,354 million (29.9%)
Nine months ended December 31, 2014: ¥1,042 million (−25.7%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Nine months ended
December 31, 2015
Nine months ended
December 31, 2014

47.44

—

35.91

—

Total Assets(¥ million)
38,81535,846

Net Assets(¥ million)
16,28315,084(2) Consolidated Financial Position

December 31, 2015
March 31, 2015
Reference: Shareholders' equity

Shareholders' Equity Ratio
%
41.6
41.9

Net Assets per Share(¥)
560.63521.57

December 31, 2015: ¥16,133 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
December 31,
as of the period-end (including treasury shares) 2015
December 31,
2) Number of treasury shares
3) Average number of shares issued andoutstanding for the period

2015
Nine months
ended December
31, 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

Nine months
ended December
31, 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 ............................................................ 3
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) Notes to Quarterly Consolidated Financial Statements ........................................................................................... 9(Notes on Going Concern Assumptions) .................................................................................................................9(Notes on Significant Changes in the Amount of Shareholders' Equity) .................................................................9(Segment and Other Information)............................................................................................................................9―1―

1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
During the nine months ended December 31, 2015, the Japanese economy was expected to sustain its
recovery owing to improvements in corporate earnings and the employment and income environment. However,with the economic slowdown in China and emerging countries becoming obvious, overseas economies remained
uncertain, as manifested by an interest rate rise in the United States and a collapse in oil prices.
In the housing sector, the favorable environment continued due to the continuation of measures to stimulate
housing demand including income tax credit for housing loans, mortgage rates remaining at a low level, andfurther improvements in the employment and income environment. Nevertheless, new housing starts were weak,
showing a year-on-year decrease for a second consecutive quarter.
Under these circumstances, the Grandy House Group implemented efforts aimed at "continuous growththrough reinforcement of the core operation (new homes)" and "expansion of business through enhancement of
the stock business" in accordance with its medium-term business plan (announced in November 2015). In new
home sales, at our "Grandy Plaza" showrooms, we provided information on a new subdivision in housing lots (ata "Town Opening" event) and held a number of sales promotion events to introduce our houses to customers in a
way that enabled them to experience the features of the houses, with a view to boosting our efforts to provide
customers with information about the merits of our offerings and our efforts to cultivate existing markets more
extensively. We also opened our new Mito Showroom in December 2015 to strengthen the aforementioned efforts
outside Tochigi Prefecture. In addition, in terms of expanding our long-standing markets, we made efforts tocover the whole of the key area stretching from southern Ibaraki Prefecture to Kashiwa City in Chiba Prefecture.
Meanwhile, in existing home sales, we worked on building up inventory in order to expand our sales.
As a result of these factors, the Grandy House Group's consolidated results for the third quarter (cumulative)of Fiscal 2016 were as follows. Net sales were ¥30,785 million, up 13.8% from the same period of the previous
fiscal year; operating income rose to ¥2,086 million, an increase of 29.3%; ordinary income was ¥2,162 million,
an increase of 28.3%; and net income attributable to owners of the parent company totaled ¥1,365 million, an
increase of 32.1%.
Results by business segment are presented as follows.
Real Estate Sales
In the new home sales business, since there were concerns at the beginning of this quarter about the effect onhome buyers' sentiment of the flood disaster resulting from the torrential rain in the Kanto and Tohoku regions in
September 2015, we focused on eliminating the anxieties of customers by promoting the safety and assurance,such as in terms of the locations of our offerings, that is supported by our group services that span the entire
process from site development to construction of housing lots and after-sales maintenance. Furthermore, we
worked on cultivating existing markets more extensively by holding a number of events that families could enjoy,
such as "Town Openings" of new subdivisions in housing lots and "Whole Townscape Viewing Tour" events,
with our "Grandy Plaza," a showroom where customers can experience the features of our houses, being used as abase for the provision of information. Following the opening in May 2015 of the Inter Park Branch (inUtsunomiya City, Tochigi Prefecture), which also houses a "Grandy Plaza," we opened the Mito Showroom (inMito City, Ibaraki Prefecture) in December 2015, making a total of four bases for the provision of information. In
addition, in terms of expanding our long-standing markets, we positioned the area stretching from southern
Ibaraki Prefecture to Kashiwa City in Chiba Prefecture as the key area for expanding our business, and advanced
efforts to cover the wide areas stretching along the Joban Line and Tsukuba Express Line, incorporating theMoriya Branch (Moriya City, Ibaraki Prefecture) established in April 2015. As a result of these efforts, new homeorders increased steadily in almost all our areas.
In existing home sales, we promoted the broadening of our marketing area by adding metropolitan areas to theareas subject to the procurement of properties, which had previously consisted of the North Kanto area only, andworked on increasing the proportion of existing apartment buildings in the composition of properties. As a result,the inventory level increased to the target level of 100 homes that was planned at the beginning of this fiscal year.
In sales of existing homes, while circumstances continued to be tough as an increase in the number of new
entrants to the market and price competition with low-cost new homes were seen, we also worked on improving
profitability, focusing on maximizing added value at the property acquisition and renovation stages.

―2―

As a result of the above efforts, for the nine months ended December 31, 2015, new home sales came to 939
homes, up 99 from the same period of the previous year, and existing home sales came to 87 homes, up five fromthe same period of the previous year.
As a result of these factors, revenues in the real estate sales segment increased 13.8% year-on-year to ¥28,394
million. Segment profit rose to ¥1,924 million, up 28.8% from the same period of the previous fiscal year.
Construction Material Sales
In the construction material sales segment, demand for pre-cut materials remained strong owing to the steady
volume of orders for wooden houses, even though new housing starts hovered at weak volumes. On the other
hand, wood prices remained on an upward trend as the balance between supply and demand tightened as a resultof production curtailment and inventory adjustment. Under such circumstances, we continued to work on
strengthening production capacity, capturing demand for pre-cut materials for non-residential buildings, andsecuring orders for building materials other than pre-cut materials. As a result, both sales and profit increased in
the nine months ended December 31, 2015 compared to the same period of the previous year.
As a result of these initiatives, revenues in the construction materials sales segment increased 16.2% year-onyear to ¥2,194 million. Segment profit rose to ¥140 million, up 9.9% from a year earlier.
Real Estate Leasing
In the real estate leasing segment, while there were no material changes in the office market in and around
Utsunomiya City, Tochigi Prefecture, which is our primary market, circumstances surrounding the parking
market continued to be tough due to the increased number of pay-by-the-hour parking lots. Under suchcircumstances, we worked on increasing the occupancy ratio of existing real estate for leasing. However, bothsales and profit decreased in the nine months ended December 31, 2015 from a year earlier. This was because
during the quarter under review we changed the use of some assets so that they changed from being assets forleasing to assets for business use and because during the previous year we sold other assets (one rental apartmentbuilding and one pay-by-the-hour parking lot).
As a result, revenues in the real estate leasing segment totaled ¥196 million, down 7.6% from a year earlier,while segment profit totaled ¥129 million, down 1.4% from a year earlier.
(2) Explanation regarding Financial Position
Total assets stood at ¥38,815 million as of December 31, 2015, up ¥2,968 million compared with the end of
the previous fiscal year. This was largely due to an increase in current assets, which resulted from an increase in
cash and deposits, as well as an increase in real estate for sale brought about by the efforts in expanding ourmarketing area for new home sales and in building up inventory aiming for the expansion of existing-home sales.
Total liabilities grew ¥1,769 million compared with the end of the previous fiscal year to ¥22,532 million.
This was mainly due to an increase in current liabilities, which was brought about by an increase in short-termloans payable since funds to acquire real estate for sale were financed mainly by loans.
Total net assets stood at ¥16,283 million as of December 31, 2015. This represents an increase of ¥1,199
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.
(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) Changes in Accounting Policies, Accounting Estimates, and Restatements(Changes in accounting policies)(Application of accounting standards for business combinations, etc.)―3―

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 nine month period ended December
31, 2014.

―4―

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

Third Quarter of FY2016(As of December 31, 2015)

AssetsCurrent assets
Cash and deposits

6,621,018

7,224,977

734,021642,796

10,704,928

10,467,577

6,251

5,076

Real estate for sale in process

6,688,779

8,931,565

Notes and accounts receivable – trade
Real estate for sale
Costs on uncompleted construction contracts
Merchandise and finished goods

145,413

147,812Raw materials and supplies

111,279

115,080

Deferred tax assets

122,613

116,548

Other

401,046

477,808

Allowance for doubtful accounts(5,344)(4,976)25,530,008

28,124,266

3,083,718

3,142,854

8,785

13,544

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

48,986

50,6835,851,832

5,859,511

107,325

72,67458,652

148,441

9,159,301

9,287,709

67,616

67,165

767,434

965,477

Investments and other assets
Investment securities
Long-term loans receivable

19,87020,372

Deferred tax assets

108,270

131,646

Other

197,708

235,901

Allowance for doubtful accounts(3,816)(17,280)

Total investments and other assets

1,089,467

1,336,117

10,316,385

10,690,991

35,846,393

38,815,258

Total non-current assets
Total assets―5―

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

Third Quarter of FY2016(As of December 31, 2015)

Liabilities
Current liabilities
Accounts payable for construction contracts

2,772,752

2,659,343

Short-term loans payable

14,074,690

16,104,000

Current portion of long-term loans payable

400,508

391,440

Current portion of bonds

21,00021,000

Lease obligations

43,99939,312

Income taxes payable582,687

376,020

Provision for warranties for completed construction

51,16753,822

Other

721,606

717,268

18,668,411

20,362,207

129,000

108,000

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

1,409,644

1,463,544

Lease obligations

69,52536,594

Provision for directors' retirement benefits

71,204

93,529Net defined benefit liability

358,010410,311

Asset retirement obligations

—

4,191

Other
Total non-current liabilities
Total liabilities

56,41653,6582,093,801

2,169,828

20,762,212

22,532,036

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

12,184,383

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

14,980,306

16,115,217

Valuation difference on available-for-sale securities

28,87418,004

Total accumulated other comprehensive income

28,87418,00475,000150,000

15,084,180

16,283,221

35,846,393

38,815,258

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)
Nine months ended
December 31, 2014
(From April 1, 2014 toDecember 31, 2014)

Nine months ended
December 31, 2015
(From April 1, 2015 to
December 31, 2015)

Net sales

27,056,351

30,785,492

Cost of sales

22,285,784

25,360,315

Gross profit

4,770,566

5,425,177

Selling, general and administrative expenses

3,157,352

3,338,543

Operating income

1,613,214

2,086,633

Non-operating income
Interest income

843

1,237

Dividends income

4,391

5,205

Operations consignment fee

153,153

167,666

Office work fee

98,058109,232

Other

28,066

17,172

Total non-operating income

284,513300,514208,992

222,950

Non-operating expenses
Interest expenses
Other

3,728

1,548

212,721

224,498

1,685,007

2,162,649

Loss on sale of non-current assets

1,070

—

Loss on retirement of non-current assets

10,647

6,871

Total non-operating expenses
Ordinary income
Extraordinary loss

Loss on cancellation of lease contracts

2,331

181

Total extraordinary loss

14,048

7,052

Net income before income taxes

1,670,958

2,155,596

Income taxes – current

636,808

802,634

Income taxes – deferred

900(12,181)

637,709790,452

Net income

1,033,248

1,365,143

Net income attributable to owners of the parent company

1,033,248

1,365,143

Total income taxes―7―

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Nine months ended December 31,
2014 (From April 1, 2014
to December 31, 2014)
Net income

Nine months ended December 31,
2015 (From April 1, 2015
to December 31, 2015)

1,033,248

1,365,143

9,046(10,870)

Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income

9,046(10,870)

1,042,295

1,354,273

1,042,295

1,354,273——

Comprehensive income attributable to:Comprehensive income attributable to owners of theparentComprehensive income attributable to noncontrolling interests―8―(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.
(Segment and Other Information)
Segment Information
I. The nine months ended December 31, 2014 (April 1, 2014 to December 31, 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)
Amount Recordedon Quarterly
Consolidated
Statements ofIncome (Note 2)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

24,955,452

1,888,402

212,496

27,056,351—

27,056,351—

2,193,798

53,8192,247,617(2,247,617)—

24,955,452
1,494,658

4,082,201
127,834

266,315
130,805

29,303,968
1,753,298(2,247,617)(68,291)

27,056,351
1,685,007

Notes: 1 Adjustments of segment profit (−¥68,291 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 nine months ended December 31, 2015 (April 1, 2015 to December 31, 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)
Amount Recordedon Quarterly
Consolidated
Statements ofIncome (Note 2)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

28,394,963

2,194,195

196,333

30,785,492—

30,785,492—

2,406,086

61,7782,467,864(2,467,864)—

28,394,963
1,924,770

4,600,281
140,537

258,112129,029

33,253,357
2,194,337(2,467,864)(31,688)

30,785,492
2,162,649

Notes: 1 Adjustments of segment profit (−¥31,688 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.

―9―