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 onthese statements. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to becorrect.

Consolidated Financial Reportfor the Third Quarter of Fiscal 2014 Ending March 31, 2014 (Japanese GAAP)
February 3, 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:
February 6, 2014
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
None
Quarterly results briefing meeting held:
None

TEL: +81-28-650-7777(Figures are rounded down to the nearest million yen.)1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2014
(April 1, 2013 to December 31, 2013)(1) Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Operating Income
Ordinary Income
Net Income(¥ million)%(¥ million)%(¥ million)%

Net Sales(¥ million)%

27,688

14.1

2,229

27.8

2,307

28.5

1,398

35.5

24,266

11.4

1,744

44.4

1,796

46.2

1,032

53.5

Nine months ended
December 31, 2013
Nine months ended
December 31, 2012
Note: Comprehensive IncomeNine months ended December 31, 2013: ¥1,402 million (35.8%)
Nine months ended December 31, 2012: ¥1,032 million (53.5%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Nine months ended
December 31, 2013
Nine months ended
December 31, 2012

48.61

—

35.87

—

Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split. Net income per share is calculated on the assumption thatstock split was conducted at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total Assets

Net Assets(¥ million)
33,67630,118December 31, 2013
March 31, 2013

Shareholders’ Equity
Ratio(¥ million)
13,282
12,110Net Assets per Share%
39.4
40.2

(¥)
461.57420.84

Reference: Shareholders’ equity

December 31, 2013: ¥13,282 million
March 31, 2013: ¥12,110 million
Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split. Net assets per share are calculated on the assumption thatstock split was conducted at the beginning of the previous fiscal year.

2. Dividends
1Q-End2Q-End(¥)——

Fiscal 2013
Fiscal 2014
Fiscal 2014 (Forecast)

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

Period-End

Total

(¥)
24.00

(¥)
24.00

8.00

8.00

Note: Revisions to the most recently announced forecast of cash dividends in the current quarter: None
Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split.

3. Consolidated Financial Forecasts for Fiscal 2014 (April 1, 2013 to March 31, 2014)

Full Fiscal YearNet Sales(¥ million)%
37,00013.7(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)
%
(¥)
2,900
25.2
3,000
25.4
1,680
23.4
58.38

Note: Revisions to the most recently announced financial forecasts in the current quarter: None
Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split.

* Explanatory notes(1) Changes in significant subsidiaries during the term (changes in specified subsidiaries resulting in a change in the scope ofconsolidation): None
Newly included: —Excluded: —(2) Adoption of specific accounting methods for preparation of the quarterly consolidated financial statements: None(3) Changes in accounting policies, accounting estimates and restatement of revisions
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 of revisions:(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 stock) 2013
December 31,
2) Number of treasury stock3) Average number of shares issued andoutstanding for the period

2013
Nine months
ended December
31, 2013

None
None
None
None

30,823,200 shares

March 31, 201330,823,200 shares

2,046,198 shares

March 31, 2013

2,046,198 shares

28,777,002 shares

Nine months
ended December
31, 2012

28,777,066 shares

Note: Effective April 1, 2013, Grandy House conducted a 1:3 common stock split. Number of shares issued and outstanding (commonstock) is calculated on the assumption that stock split was conducted at the beginning of the previous fiscal year.

*Disclosure concerning the implementation status of quarterly review proceduresThis quarterly financial report is exempt from the quarterly review procedure provisions stipulated under the Financial
Instruments and Exchange Act of Japan. As of the date of disclosure, quarterly review procedures in connection with quarterly
consolidated financial statements as stipulated under the Financial Instruments and Exchange Act have not been completed.

*Explanation concerning the appropriate use of financial forecasts and other special instructions
The forecast data presented in this report are based on currently available information and contain a significant number ofuncertainties. 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) .................................................................... 4(1) Changes in Significant Subsidiaries during the Term ............................................................................................. 4(2) Adoption of Specific Accounting Methods for Preparation of the Quarterly Consolidated Financial Statements .. 4(3) Changes in Accounting Policies, Accounting Estimates and Restatement of Revisions ......................................... 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) 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
In the third quarter, or nine month period from April 1, 2013 to December 31, 2013 of fiscal 2014 (the fiscalyear ending March 31, 2014) the Japanese economy exhibited signs of a modest economic recovery. Amid
expanded public investment, large-scale monetary easing measures by the Bank of Japan, and other factors,
trends in personal consumption were firm with indications of an improvement in corporate-sector earnings andcapital investment.
In the housing sector, in order to mitigate market fluctuations accompanying the increase to consumer tax, theintroduction of provisions such as expanded tax reductions for housing loans and benefits for housing acquisition(housing allowances) were announced. Despite this announcement demand spiked, and trends in new housing
starts were positive. However, since October of last year, in custom-built housing orders with the period forcontracts under the old tax rate expired and a downturn apparent, the industry is in a period of future uncertainty.
Under these circumstances, our Group is working diligently to strengthen housing land development site
procurement capabilities, and to expand sales and marketing areas, while increasing market share in each area, asa part of the medium-term target of further bolstering the Group's core business segment (real estate sales). Dueto efforts to increase market share in all areas, including the priority Chiba region, the number of new homes soldin the third quarter of fiscal 2014 were 857, up 132 from the corresponding period of the previous year.
Additionally, in November 2013, the cumulative number of new homes sold (since 1996) reached 9,000.
As a result of these factors, consolidated net sales in the third quarter of fiscal 2014 were ¥27,688 million, up
14.1% compared with the corresponding period of the previous fiscal year. Operating income was¥2,229 million, up 27.8%, ordinary income was ¥2,307 million, up 28.5%, and net income was ¥1,398 million,
up 35.5% compared with the corresponding period of the previous fiscal year.

―2―Results by business segment are presented as follows.
Real Estate Sales
In new home sales, while focusing on further strengthening our land procurement network, we worked
diligently to raise market share in all areas, including strengthening our information collection capabilities in thepriority Chiba area and strengthening supply network architecture. However, existing home sales were impacted
by a prolonged slump in the number of properties available for procurement on the market. As a result, while thenumber of new homes sold during the third quarter of fiscal 2014 was 857, up 132 compared with thecorresponding period of the previous fiscal year, the number of existing homes sold was 101, which is down 40
homes.
As a result of the aforementioned factors, revenues in the real estate sales segment in the third quarter offiscal 2014 were ¥25,594 million, up 14.0% compared with the corresponding period of the previous fiscal year.
Segment profit was ¥2,148 million, up 37.5% compared with the corresponding period of the previous fiscalyear.
Construction Material Sales
In the construction material sales segment, we experienced increased revenue due to efforts to strengthen oursales network and production system. However, after a brief lull in summer, the cost of material began to riseonce again, which in turn affected profits. As a result, revenues in the construction material sales segment in thethird quarter of fiscal 2014 were ¥1,897 million, up 22.3% compared with the corresponding period of theprevious fiscal year, while segment profit was ¥81 million, down 37.2% compared with the corresponding periodof the previous fiscal year.
Real Estate Leasing
In the real estate leasing segment, as leasing demand near Utsunomiya City (Tochigi Prefecture), a principal
area for business development, showed no signs of significant recovery, revenues in the real estate leasing
segment in the third quarter of fiscal 2014 were ¥196 million, down 25.2% compared with the corresponding
period of the previous fiscal year. This largely reflected the transfer of real estate (¥64 million of revenues in thecorresponding period of the previous fiscal year) temporarily used for leasing purposes in the previous fiscal year
to its originally planned use of site for sale (Moka Oyadai New Town). Segment profit was ¥104 million, down
34.3% compared with the corresponding period of the previous fiscal year.
(2) Explanation regarding Financial Position
Total assets stood at ¥33,676 million as of December 31, 2013, up ¥3,557 million compared with the end of
the previous fiscal year. Amid persistently strong new housing sales, the major factor was an increase in thebalance of real estate for sale following the acquisition and development of sites in preparation for the nextperiod.
Total liabilities stood at ¥20,393 million as of December 31, 2013, up ¥2,385 million compared with the endof the previous fiscal year. With the increased acquisition and development of sites, the principal reason for theincrease in liabilities was the increase in short-term loans payable as project funding.
Total net assets stood at ¥13,282 million as of December 31, 2013, up ¥1,171 million compared with the endof the previous fiscal year. While there was payment of dividends to shareholders, this increase is largely due toquarterly net income of ¥1,398 million.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There is no change to financial forecasts announced on October 28, 2013.

―3―

2. MATTERS CONCERNING SUMMARY INFORMATION (Notes)(1) Changes in 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 Restatement of Revisions
Not applicable.

―4―3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2013(As of March 31, 2013)

Third Quarter of FY2014(As of December 31, 2013)

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

5,218,245

5,290,754

394,082591,693

6,171,787

9,011,948

10,15912,930

7,404,313

7,617,770

Merchandise and finished goods

252,665

146,005

Raw materials and supplies

113,328

111,817

Deferred tax assets

124,336

107,147

Other

256,258

385,059

Allowance for doubtful accounts(2,788)(4,100)19,942,389

23,271,027

3,339,538

3,278,468

4,543

13,031

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net

44,98941,9095,915,880

5,915,880

154,738

142,0099,459,690

9,391,299

64,062

67,513

Investment securities

514,882

729,901

Long-term loans receivable

29,98742,279Deferred tax assets

86,295

94,158

Other

57,245

116,377

Allowance for doubtful accounts(36,283)(36,496)

Land
Lease assets, net
Total property, plant and equipment
Intangible assets
Investments and other assets

Total investments and other assets
Total noncurrent assets
Total assets―5―652,127

946,221

10,175,880

10,405,034

30,118,269

33,676,061

(Thousands of Yen)FY2013(As of March 31, 2013)

Third Quarter of FY2014(As of December 31, 2013)

Liabilities
Current liabilities
Accounts payable for construction contracts

2,299,933

2,394,319

Short-term loans payable

11,639,900

14,168,470

482,612420,447

Current portion of long-term loans payable
Lease obligations

49,63045,423

Income taxes payable579,313453,679

Provision for warranties for completed construction

55,43357,674

Other
Total current liabilities

644,494

802,467

15,751,317

18,342,479

Noncurrent liabilities
Long-term loans payable

1,828,171

1,576,247

Lease obligations

123,134

109,612

Provision for retirement benefits

221,276

269,044

Provision for directors’ retirement benefits

17,24137,804

Other

66,49358,295

Total noncurrent liabilities

2,256,316

2,051,003

18,007,633

20,393,482

Capital stock

2,077,500

2,077,500

Capital surplus

2,205,165

2,205,165

Retained earnings

8,179,785

9,348,497

Treasury stock(351,814)(351,814)

12,110,636

13,279,347

–

3,231

Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

―6―–

3,231

12,110,636

13,282,578

30,118,269

33,676,061

(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, 2012
(From April 1, 2012 toDecember 31, 2012)

Nine months ended
December 31, 2013
(From April 1, 2013 to
December 31, 2013)

Net sales

24,266,411

27,688,827

Cost of sales

19,719,917

22,375,407

Gross profit4,546,493

5,313,419

Selling, general and administrative expenses

2,802,033

3,084,104

Operating income

1,744,459

2,229,314

Interest income

425

838

Dividends income

139

138

Non-operating income

Operations consignment fee

120,970

148,177

Office work fee

101,608

108,152

Other

20,856

16,725

Total non-operating income

244,001

274,032

Interest expenses

159,242

195,666

Commission for syndicate loan

32,198–537–

191,977

195,666

1,796,483

2,307,680

Loss on retirement of noncurrent assets

15,745

15,592

Impairment loss

25,571–41107

Total extraordinary loss

41,35815,700Net income before income taxes

Non-operating expenses

Other
Total non-operating expenses
Ordinary income
Extraordinary loss

Loss on cancel of lease contracts

1,755,125

2,291,980

Income taxes-current

698,981885,495

Income taxes-deferred

23,982

7,556

Total income taxes

722,964

893,052

Income before minority interests

1,032,160

1,398,927

Net income

1,032,160

1,398,927―7―

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Nine months ended
December 31, 2012
(From April 1, 2012 toDecember 31, 2012)

Nine months ended
December 31, 2013
(From April 1, 2013 toDecember 31, 2013)

1,032,160

1,398,927

Valuation difference on available-for-sale securities

–

3,231

Total other comprehensive income

–

3,231

1,032,160

1,402,158

1,032,160

1,402,158––

Income before minority interests
Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority 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)
I. The third quarter of the fiscal year ended March 31, 2013 (April 1, 2012 to December 31, 2012)
1. Information relating to the amounts of net sales, profit and loss by reportable segment
Reportable Segment

Net sales
Sales to outside
customers
Intersegment salesand transfers
Total
Segment profit

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

Real Estate
Sales

ConstructionMaterial Sales

Real Estate
Leasing

22,451,877

1,552,149

262,384

24,266,411–

24,266,411–

1,649,518

44,491

1,694,009(1,694,009)–

22,451,877
1,562,538

3,201,667
129,980

306,876
158,690

25,960,421
1,851,209(1,694,009)(54,726)

24,266,411
1,796,483

Total

Notes: 1. Adjustments of segment profit (¥54,726 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 impairment losses on noncurrent assets, goodwill, and other items by reportablesegment(Material impairment losses on noncurrent assets)
In the real estate sales business, Grandy House recorded an impairment loss. This impairment loss
represented the write-down of the relevant asset group to the recoverable amount in accordance with thechange in classification from business assets to assets for sale. The amount of impairment loss was¥25,571 thousand for the third quarter of the fiscal year under review.
(Material changes in the amount of goodwill)
Not applicable.
(Gain on negative goodwill of a material nature)
Not applicable.
II. The third quarter of the fiscal year ending March 31, 2014 (April 1, 2013 to December 31, 2013)
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
TotalSegment profit

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

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

25,594,691

1,897,942

196,192

27,688,827–27,688,827–

2,040,494

57,0682,097,563(2,097,563)–

25,594,691
2,148,682

3,938,437
81,613

253,261
104,318

29,786,390
2,334,614(2,097,563)(26,934)

27,688,827
2,307,680

Total

Notes: 1. Adjustments of segment profit (¥26,934 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 impairment losses on noncurrent assets, goodwill, and other items by reportablesegment
Not applicable.
―9―