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. Thissummary 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 Reportfor Fiscal 2022 (Fiscal Year Ended March 31, 2022 under Japanese GAAP)
Company Name: Grandy House Corporation
Stock Exchange Listing:
Securities Code: 8999
URL:
Representative:
Yasuro Hayashi, President
Inquiries:
Atsuo Saito, Vice President, General Administration Manager
Scheduled date of the Ordinary General Meeting of Shareholders: June 29, 2022
Scheduled date of securities report filing:
June 29, 2022
Scheduled date of dividend payment commencement:
June 30, 2022
Preparation of annual supplementary explanatory materials:
Yes
Annual results briefing held:
None

May 9, 2022
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 Fiscal 2022 (April 1, 2021 to March 31, 2022)(1) Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Net Income Attributable to
Net Sales
Operating Income
Ordinary Income
Owners of the Parent(¥ million)%(¥ million)%(¥ million)%(¥ million)%
Fiscal 2022
54,884
16.4
4,022
74.9
3,810
81.8
2,583
49.8
Fiscal 2021
47,154
—
2,299
—
2,095
—
1,724
—
Note: Comprehensive income
Fiscal 2022: ¥2,581 million (47.9%)
Fiscal 2021: ¥1,745 million (—%)
Net Income per
Net Income per
Ordinary Income /Operating Income /Return on Equity
Share
Share (Diluted)
Total Assets
Net Sales
(¥)
(¥)
%
%
%
Fiscal 2022
88.06
87.56
10.9
6.4
7.3
Fiscal 2021
59.30
59.12
7.7
3.7
4.9
Reference: Equity in earnings of affiliates
Fiscal 2022: — (¥ million)
Fiscal 2021: — (¥ million)
Note: As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) and other standards havebeen applied since the beginning of the consolidated fiscal year under review, financial results related to the fiscal year ended March 2021
reflect figures calculated after the retroactive application of such standards. Accordingly, percentage changes representing the year-onyear increase (decrease) between the fiscal year ended March 2021 and the previous fiscal year are not stated.

(2) Consolidated Financial Position
Total Assets
Net Assets
Shareholders' Equity Ratio
Net Assets per Share(¥ million)(¥ million)%(¥)
March 31, 2022
60,901
24,66040.4
850.82
March 31, 2021
58,07023,16039.6
786.57
Reference: Shareholders' equity
Fiscal 2022: ¥24,592 million
Fiscal 2021: ¥23,007 million
Note: Figures related to the fiscal year ended March 31, 2021 reflect those calculated after the retroactive application of the "AccountingStandard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) and other standards.

(3) Consolidated Cash Flows

Fiscal 2022
Fiscal 2021

Cash Flows fromOperating Activities(¥ million)
(444)
3,481

Cash Flows from
Investing Activities(¥ million)
(481)
(410)

Cash Flows from
Financing Activities(¥ million)(1,339)(58)

Cash and Cash Equivalents
at the End of the Period(¥ million)
11,083
13,3492. Dividends
Annual Dividend per Share

Total
Dividends

Payout Ratio(Consolidated)

Ratio of
Dividends to
Net Assets(Consolidated)
%
3.1
3.7

PeriodTotal
End
(¥)
(¥)
(¥)
(¥)
(¥)
(¥ million)%
Fiscal 2021
—
0.00
—
24.00
24.00
702
40.5
Fiscal 2022
—
0.00
—
30.00
30.00
902
34.1
Fiscal 2023 (Forecast)
—
0.00
—
32.00
32.00
35.6
Note: Total dividends include dividends (¥35 million for the fiscal year ended March 2022) paid to shares in the Company held by "GrandyHouse Employee Stock Holding Partnership Exclusive Trust Account."
1Q-End2Q-End3Q-End3. Consolidated Financial Forecasts for Fiscal 2023 (April 1, 2022 to March 31, 2023)
Net Sales
Full Fiscal Year(¥ million)
58,000Operating Income%
5.7(¥ million)
4,070

%
1.2

(Percentage figures show the year-on-year increase (decrease).)Net Income
Ordinary Income
Attributable to
Net Income per ShareOwners of the Parent(¥ million)%(¥ million)
%
(¥)
3,820
0.3
2,600
0.6
89.95

* 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) Changes in accounting policies, accounting estimates, and restatement of revisions
1) Changes in accounting policies due to revision to accounting standards, etc.:
Yes2) Changes in accounting policies other than 1):
None3) Changes in accounting estimates:
None4) Restatements:
None
Note: For details, please refer to "(5) Notes to Consolidated Financial Statements (Changes in Accounting Policies)" in "4.
CONSOLIDATED FINANCIAL STATEMENTS AND NOTES" on page 15 of the Attachment Materials.
(3) 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

March 31, 2022

30,823,200 shares

March 31, 2021

30,823,200 shares

March 31, 2022
1,918,845 shares March 31, 2021
1,572,645 shares
March 31, 2022
29,343,893 shares March 31, 2021
29,086,124 shares
Note: The number of treasury shares at the end of the fiscal year includes shares in the Company held by "Grandy House Employee Stock
Holding Partnership Exclusive Trust Account" (1,194,000 shares for the fiscal year ended March 2022). The shares in the Company
held by "Grandy House Employee Stock Holding Partnership Exclusive Trust Account" are included in treasury shares that are
excluded when calculating the average number of shares during the period (184,477 shares for the fiscal year ended March 2022).

Reference: Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for Fiscal 2022 (April 1, 2021 to March 31, 2022)(1) Non-Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Fiscal 2022
Fiscal 2021

Net Sales(¥ million)
26,92023,595%
14.1—

Operating Income(¥ million)
%
1,833
38.3
1,326
—

Ordinary Income(¥ million)
%
2,653
23.3
2,152
—

Net Income(¥ million)
2,134
1,914

%
11.5
—

Net Income per Share(Diluted)(¥)(¥)
Fiscal 2022
72.73
72.32
Fiscal 2021
65.82
65.62
Note: As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) and other standards havebeen applied since the beginning of the consolidated fiscal year under review, financial results related to the fiscal year ended March
2021 reflect figures calculated after the retroactive application of such standards. Accordingly, percentage changes representing theyear-on-year increase (decrease) between the fiscal year ended March 2021 and the previous fiscal year are not stated.
Net Income per Share(2) Non-Consolidated Financial Position
Total Assets
Net Assets
Shareholders' Equity Ratio
Net Assets per Share(¥ million)(¥ million)%(¥)
March 31, 2022
40,231
21,51153.3
741.90March 31, 2021
37,794
20,461
53.7
694.32
Reference: Shareholders' equity Fiscal 2022: ¥21,444 million
Fiscal 2021: ¥20,309 million
Note: Figures related to the fiscal year ended March 31, 2021 reflect those calculated after the retroactive application of the "AccountingStandard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) and other standards.

2. Non-Consolidated Financial Forecasts for Fiscal 2023 (April 1, 2022 to March 31, 2023)(Percentage figures show the year-on-year increase (decrease).)Full Fiscal YearNet Sales(¥ million)
27,500%2.2

Ordinary Income(¥ million)
%
2,740
3.3

Net Income(¥ million)
2,230

Net Income per Share
%
4.5

(¥)
77.15

*

This consolidated financial report is not subject to auditing by a certified public accountant or an audit firm.

*

Explanation concerning the appropriate use of financial forecasts and other special instructions
Disclaimer:
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. Please refer to "1. OVERVIEW OFOPERATING RESULTS (1) Overview of Operating Results for Fiscal 2022" on page 2 of the Attachment Materials for
information regarding the underlying assumptions for financial forecasts and an explanation concerning the appropriate use of
forecasts and other notes.

Attachment Materials: Table of Contents
1. OVERVIEW OF OPERATING RESULTS ............................................................................................................. 2(1) Overview of Operating Results for Fiscal 2022 ................................................................................................. 2(2) Overview of Financial Position for Fiscal 2022 ................................................................................................. 3(3) Overview of Cash Flows for Fiscal 2022 ........................................................................................................... 4(4) Outlook for Fiscal 2023 ..................................................................................................................................... 5(5) Basic Policy concerning the Allocation of Profits and Dividends for Fiscal 2022 and Fiscal 2023................... 5
2. OVERVIEW OF THE CORPORATE GROUP ....................................................................................................... 6
3. BASIC APPROACH TO THE SELECTION OF ACCOUNTING STANDARDS ................................................ 7
4. CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ........................................................................... 8(1) Consolidated Balance Sheets .............................................................................................................................. 8(2) Consolidated Statements of Income and Comprehensive Income ................................................................... 10(Consolidated Statements of Income) ..............................................................................................................10(Consolidated Statements of Comprehensive Income) .................................................................................... 11(3) Consolidated Statements of Changes in Net Assets ......................................................................................... 12(4) Consolidated Statements of Cash Flows ........................................................................................................... 14(5) Notes to Consolidated Financial Statements .................................................................................................... 15(Notes on Going Concern Assumptions) ..........................................................................................................15(Changes in Accounting Policies) ....................................................................................................................15(Additional Information) ..................................................................................................................................15(Segment Information) .....................................................................................................................................16― 1 ―1. OVERVIEW OF OPERATING RESULTS
As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020)and other standards have been applied since the beginning of the consolidated fiscal year under review, thecomparative analysis with the previous consolidated fiscal year in "Explanation regarding Operating Results" and"Explanation regarding Financial Position" for the consolidated fiscal year under review reflects figures
calculated after the retroactive application of such standards.
(1) Overview of Operating Results for Fiscal 2022
In the consolidated fiscal year under review, economic conditions in Japan remained difficult, mainly due to astate of emergency declared twice in the wake of the spread of COVID-19. Regarding the domestic economic
situation, there were favorable factors, such as the first positive growth in two quarters in the real GDP for
October to December 2021, which raised expectations that the economy could pick up. However, the outlook
stayed uncertain owing to fear of the impact of economic sanctions that some countries imposed on Russia
following its invasion of Ukraine this past February.
In the housing section, the number of new housing starts has remained on a moderate recovery path toward
the pre-pandemic level. This has mainly been due to a rise in consumer appetite for home acquisition induced bychanges to lifestyles during the coronavirus (COVID-19) crisis, the support measures taken to promote homeacquisition, and the continued low interest rates.
Under these circumstances, the Grandy House Group has upheld the basic policies of "Strengthen ourbusiness foundations and expand business areas for sustainable growth in the new home sales business," "Expand
the scale of the housing stock business and maximize synergies with the new home sales business" and"Strengthening our response to sustainability (ESG) issues" in the third medium-term business plan (from thefiscal year ended March 31, 2022 to the fiscal year ending March 31, 2024), which was announced in August2021. Accordingly, the Group has made efforts to further improve its corporate value and expand its businesses.
With regard to new home sales, one of our core operations, the cumulative number of homes sold exceeded
20,000 in February 2022 partly due to sales promotional measures, including the commemorative campaign forthe 30th anniversary of our founding. In the sales area of Saitama Prefecture, a focal point for the Group,
construction of the Saitama Branch's new office building (Midori Ward, Saitama City) was completed, and theGroup strove to strengthen the foundation of the production and sales structures. Moreover, the Fujimino Branch(in Fujimi City) started selling homes in Nishi-Oizumi, Nerima Ward, for the first time in Tokyo. In the sales areaof Kanagawa Prefecture, Plaza House, Inc. changed its company name in an effort to speed up businessexpansion under the Grandy House brand.
On the other hand, for existing home sales in the housing stock business, we endeavored to reinforce
coordination with brokers to lift the number of homes sold and enhance product inventory through measures suchas participating in auctions.
Following these initiatives, the Grandy House Group's results for the consolidated fiscal year ended March2022 were record highs in both net sales and income. Net sales totaled ¥54,884 million, an increase of 16.4%
year-on-year; operating income rose to ¥4,022 million, an increase of 74.9% year-on-year; ordinary income was¥3,810 million, a rise of 81.8% year-on-year; and net income attributable to owners of the parent totaled ¥2,583
million, an increase of 49.8% year-on-year.
Operating results by business segment are presented as follows.
a. Real Estate Sales
In new home sales, we have worked to expand the sales areas and further cultivate existing areas while
continuing to implement thorough infection prevention measures and focus on our non-contact sales activities,
prioritizing the peace of mind and safety of customers and employees. In this period, the cumulative numberof new homes sold by the Group reached 20,000 in February 2022.
The situations for Saitama Prefecture and Kanagawa Prefecture, focal areas for business expansion, are as
follows:
In Saitama Prefecture, the Saitama Branch's (Midori Ward, Saitama City) new office building, which isfitted out with a showroom, was completed in October 2021, and the Saitama Branch worked to strengthen the
production and sales system, covering the territory from the prefectural center to the western area, in
cooperation with the Fujimino Branch (in Fujimi City) that was opened in April. In the Fujimino Branch's
sales territory, we started selling properties in "Sakura Oizumi" (a total of four lots) in the first sales phase of
our first housing project in Tokyo, Nishi-Oizumi, Nerima Ward (a planned total of 21 lots) in December. With
this project, we are now selling homes in every prefecture of the Kanto region.
In Kanagawa Prefecture, Plaza House, Inc., which became a subsidiary of the Group through M&A (in― 2 ―July 2019), added and strengthened human resources to prepare for business growth, and reinforced the
production and sales systems for homes from in-house production. As the final stage of post-merger
integration (PMI), Plaza House, Inc. changed its company name to "Kanagawa Grandy House, Inc." in March2022 to clarify that the company is a member of the Grandy House Group and speed up the enhancement of
the brand power and business expansion.
Regarding products, we endeavored to develop products that accommodate new lifestyles in response tochanges in living environment needs arising from the Coronavirus (COVID-19) crisis and create high valueadded products that pay special attention to the child-rearing generation. Furthermore, to meet a rise inawareness toward sustainability, we have pushed forward with initiatives such as the sales of homes in "Sora
Town Tsukuba Matsushiro (with a total of 96 lots in Tsukuba City, Ibaraki Prefecture)." This is a large-scale
housing project in which all new homes employ the net-zero-energy house system (ZEH). In the 2022 Oricon
Customer Satisfaction Survey to rank the tract-home builders in the northern Kanto region, announced in
February 2022, Grandy House took the No. 1 spot for all survey items including "Housing structure andlayout," "Housing equipment" and "Design." As a result, we have ranked overall No. 1 for three consecutive
years.
Through these efforts, the number of homes sold for the consolidated fiscal year under review reached arecord high of 1,510 (an increase of 124 year-on-year).
Regarding existing-home sales, demand for existing homes was so high during the Coronavirus (COVID19) crisis that selling prices remained on an upward trend. On the other hand, as competition intensified interms of purchasing, we increased product inventory mainly through strengthening cooperation with brokers
and actively bidding at auctions. Consequently, the number of homes sold for the consolidated fiscal year
under review was 148, an increase of 11 year-on-year.
As a result of these initiatives, sales in the real estate sales segment during the fiscal year under review
increased 15.3% year-on-year to ¥51,024 million, while segment profit was ¥3,272 million, up 88.7% from theprevious fiscal year.
b. Construction Material Sales
In construction material sales business, although the shortage of imported timber materials and the surge
in their prices—the so-called "wood shock"—is easing, the situation remains difficult with domestic timbermaterials such as plywood running short, and their selling prices again reaching record levels. Nevertheless,
new housing starts for wooden houses for the fiscal year ended March 31, 2022 (from April 2021 to March
2022) stayed robust, posting a year-on-year increase each month except February 2022. As for purchasing raw
materials, on the other hand, the outlook is uncertain because Russian timber has been included in the list of
economic sanctions that the international community imposed on Russia following its invasion of Ukraine,
which started in February, even though the global surge in wood prices caused by the "wood shock" has begun
to subside.
Under these conditions, we focused on measures such as maintaining purchase volumes throughstrengthening the supply chain and making the prices of received orders reasonable, leading to year-on-yearincreases in both net sales and profits. As a result, sales in the construction materials sales segment during theconsolidated fiscal year under review rose by 35.4% year-on-year to ¥3,577 million, with a segment profit of¥405 million, an increase of 80.7% year-on-year.
c. Real Estate Leasing
Regarding the real estate leasing business, vacancy is on a recovery trend in the office leasing market in
the key Utsunomiya area, primarily due to new demand and better locations. Nonetheless, properties with apoor location and outdated equipment stay vacant for longer, pushing market polarization. Although theparking market has seen the impact of COVID-19 ease, areas with high restaurant-related demand haveendured tough market conditions.
In this light, we endeavored to increase leasing assets and improve the operational rate of existing assets,
which boosted sales year-on-year, but profits decreased due to a rise in management costs, resulting frommoving regular renovations, etc. forward. As a result, sales in the real estate leasing segment for the
consolidated fiscal year under review were ¥282 million, an increase of 6.0% year-on-year, with a segment
profit of ¥118 million, a decrease of 23.1% year-on-year.
(2) Overview of Financial Position for Fiscal 2022
As of the end of the consolidated fiscal year under review, consolidated total assets rose to ¥60,901 million, arise of ¥2,831 million compared to the end of the previous consolidated fiscal year. This was primarily due to an― 3 ―increase in inventories through acquiring housing lots associated with the area expansion of real estate sales. Thiswas despite a decline in cash and deposits resulting from repayments of short-term loans payable.
Liabilities increased to ¥36,241 million, an increase of ¥1,331 million from the end of the previous fiscal year.
This was mainly due to a rise in accounts payable for construction contracts primarily resulting from progress
made in acquiring of housing lots while repaying loans that the Company had increased to secure liquidity on
hand during the Coronavirus (COVID-19) crisis. Borrowings to finance projects that are due in one year or moreare included in long-term loans payable instead of short-term loans payable effective as of the fiscal year underreview.
Total net assets stood at ¥24,660 million as of March 31, 2022. This represents an increase of ¥1,499 million
from the balance recorded as of March 31, 2021. This was due to acquiring net income attributable to owners of
the parent despite the payment of dividends.
(3) Overview of Cash Flows for Fiscal 2022
Cash and cash equivalents (hereinafter, "cash flows") as of the end of the consolidated fiscal year underreview decreased by ¥2,265 million from the end of the previous fiscal year, as a result of smaller cash flows
from operating activities and reduced cash flows from investing activities and financing activities, to reach¥11,083 million.
The Company's cash flows and their factors that cause them to fluctuate during the consolidated fiscal year
under review are presented as follows.
(Cash Flows from Operating Activities)
Net cash used in operating activities amounted to ¥444 million (a rise of ¥3,481 million in the previous fiscal
year). This was mainly due to an increase in inventories and payments of income taxes despite earning net
income before income adjustment for taxes.
(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to ¥481 million (a decrease of ¥410 million in the previous
fiscal year). This was mainly due to the construction of new branch buildings, the acquisition of leasing
properties, and other items.
(Cash Flows from Financing Activities)
Net cash provided by financing activities amounted to ¥1,339 million (a decrease of ¥58 million in theprevious fiscal year). This was mainly due to payments of dividends, the acquisition of treasury shares, andothers.
With respect to acquiring treasury shares, since the Company adopted a "trust-type employee stock holding
incentive plan" in February 2022, shares acquired by such trust were included in treasury shares.
Trends in the Group's cash flow-related indices are presented as follows.
Shareholders' equity ratio (%)
Equity ratio on market value basis (%)
Interest-bearing liabilities to cash flow ratio (years)
Interest coverage ratio (times)

Fiscal 2020
39.2
18.6
—
—

Fiscal 2021
39.6
24.3
8.3
12.4

Fiscal 2022
40.4
24.8
—
—

Shareholders' equity ratio: Shareholders' equity/total assets
Equity ratio on a market value basis: Market capitalization/total assets
Interest-bearing liabilities to cash flow ratio: Interest-bearing liabilities/cash flows
Interest coverage ratio: Cash flows/interest payments
Notes: 1. Each index is calculated based on consolidated financial data.
2. Market capitalization is calculated based on the number of issued shares as of the period-end (after
deducting treasury shares).
3. Cash flows from operating activities are used as "cash flows" in the above calculation. As operating
cash flows for the fiscal year ended March 31, 2020 and the fiscal year ended March 31, 2022 were
negative, the interest-bearing liabilities to cash flow ratio and interest coverage ratio data have been
omitted for these years.
4. Interest-bearing liabilities include all liabilities that bear interest under the liabilities section recordedon consolidated balance sheets.

― 4 ―(4) Outlook for Fiscal 2023
The Japanese economy is forecast to remain uncertain in the future because there are concerns that several
factors will affect domestic demand. Such factors include a prolonged pandemic, shortages of natural resources
and their price surges triggered by economic sanctions that some countries have imposed on Russia following
Russia's invasion of Ukraine, shortages of electricity, and low stock prices. Under such circumstances, thehousing market is expected to see lifestyle changes arising from the Coronavirus (COVID-19) crisis, support
measures put in place by the central and local governments to promote home acquisition, and continued low
interest rates. We expect the consumer appetite for home acquisition to remain high, mainly in the metropolitan
area.
In the third medium-term business plan (from the fiscal year ended March 31, 2022 to the fiscal year ending
March 31, 2024), announced in August 2021, we have taken the business environment that is changing drastically
due to the impact of COVID-19 as an opportunity for the Grandy House Group to grow significantly, and haveresolved to keep working to strengthen business foundations for sustainable growth.
In accordance with this thinking, the new home sales business, one of our core operations, has made progressin establishing a sales base in the Tokyo metropolitan region (Chiba Prefecture, Saitama Prefecture andKanagawa Prefecture), positioned as a priority area for business growth, and will strive to expand further throughefforts such as securing human resources and acquiring housing lots.
In the housing stock business, the renovation business will offer a reliable after-sales system for former newhome customers in an ongoing effort to maximize synergies with the new home sales business. In the existinghome business, we will grow sales through strengthening relationships with brokers and leveraging theaccumulated purchasing expertise to increasing the number of properties handled and securing properties across a
broad geographic area.
In terms of strengthening our response to sustainability (ESG) issues, we will promote disaster prevention andmitigation, energy-saving and energy creation, etc. through building safe and secure houses and providing
comfortable and healthy homes.
The Group's consolidated financial forecast for the fiscal year ending March 31, 2023 is expected to be as
follows: net sales of ¥58,000 million, an increase of 5.7% year-on-year; operating income of ¥4,070 million, arise of 1.2% year-on-year; ordinary income of ¥3,820 million, growth of 0.3% year-on-year; and net income
attributable to owners of the parent of ¥2,600 million, an increase of 0.6% year-on-year.
(5) Basic Policy concerning the Allocation of Profits and Dividends for Fiscal 2022 and Fiscal 2023
Grandy House focuses on increasing the corporate value and returning more profits to shareholders as one ofits priority management issues. For shareholders, we will follow a dividend policy that is based on businessperformance and work to enhance the policy while aiming for a consolidated dividend payout ratio of 35%.
Purchase of treasury shares will be made in a timely manner and in accordance with the Company's financial
position in order to enhance shareholder returns and capital efficiency.
The dividend per share for fiscal 2022 under review will be ¥30 per share in accordance with the dividend
forecast that we announced on February 7, 2022. The annual dividend forecast for the year ending March 31,
2023 is ¥32 per share.

― 5 ―2. OVERVIEW OF THE CORPORATE GROUP
The Grandy House Group (Grandy House Corporation and its affiliates) consists of Grandy House
Corporation and eight subsidiaries. The Group is mainly engaged in real estate sales, construction material sales,
and real estate leasing.
The business operations of the Group and the positions of the Grandy House Corporation and its main
subsidiaries (seven companies) in those operations are as follows.
(1) Real Estate Sales
The Grandy House Group purchases housing lots, obtains permits and approvals for development, manages
residential construction works, designs and builds houses, and handles sales and after-sales maintenance.
Sales, design, and construction of detached houses, which are our main business, are in general supervised byGrandy House Corporation and its subsidiaries by trading area, from the perspective of promoting region-based
sales. General sales areas of each company are as follows:
Grandy House Corporation: Tochigi Prefecture, western part of Ibaraki Prefecture, and Saitama Prefecture
Ibaraki Grandy House Co., Ltd.: Ibaraki Prefecture (excluding the western part)
Gunma Grandy House Co., Ltd.: Gunma Prefecture
Chiba Grandy House Co., Ltd.: Chiba Prefecture
Kanagawa Grandy House, Inc.: Kanagawa Prefecture
Furthermore, Chuko Jutaku Joho Kan Co., Ltd. is engaged in sales of existing homes and Grandy Reform Co.,
Ltd. is engaged in the after-sales maintenance and renovation business.
(2) Construction Material Sales
General Livetech Co., Ltd. is engaged in sales of construction materials and components, mainly pre-cut
materials.
(3) Real Estate Leasing
Grandy House Corporation and some of its subsidiaries are engaged in the leasing business of tenantbuildings, apartments and other properties owned by these companies, and the parking lot business.
[Business Group Organization Chart] (As of March 31, 2022)
The matters described above are shown in the following Business Group Organization Chart.
Grandy House Corporation
Supply of pre-cut materials, etc.

Sales of pre-cut
materials, etc.

Leasing of houses, stores, and buildings and the parking lot business

General Livetech Co., Ltd.
Sales of existinghomes, etc.

Renovation

Sales of detachedhouses, etc.
(Kanagawa Prefecture)

After-sales maintenance

Chuko Jutaku Joho Kan Co., Ltd.

Grandy Reform Co., Ltd.

Kanagawa Grandy House, Inc.

Entrustment of after-sales maintenance

Sales of detached houses, etc.
(Ibaraki, Gunma, and Chiba Prefectures)

Sale of detached houses, etc. (Tochigi Prefecture, etc.)

Ibaraki Grandy House Co., Ltd.
Gunma Grandy House Co., Ltd.
Chiba Grandy House Co., Ltd.

Customers
Construction
material sales

Real estate sales― 6 ―Real estateleasing

3. BASIC APPROACH TO THE SELECTION OF ACCOUNTING STANDARDSAt present, the Grandy House Group operates its business only in Japan and most of its stakeholders areshareholders, lenders, and business partners in Japan. The Group has no plan to raise funds from overseas
markets. Against this background, the Group will prepare its consolidated financial statements based on Japanese
GAAP for the time being.
For the application of International Financial Reporting Standards (IFRS), we will take adequate actions while
paying attention to various situations inside and outside Japan.

― 7 ―4. CONSOLIDATED FINANCIAL STATEMENTS AND NOTES(1) Consolidated Balance Sheets(Thousands of Yen)
Fiscal 2021
(As of March 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade and contract assets
Securities
Real estate for sale
Costs on uncompleted construction contracts
Real estate for sale in process
Merchandise and finished goods
Raw materials and supplies
Other
Allowance for doubtful accounts

Fiscal 2022
(As of March 31, 2022)

13,363,516
496,993
201,921
7,451,307
7,725
22,584,961
237,434
114,678
920,828(2,362)

11,098,044
702,666–
8,129,757
7,246
26,090,400
350,922279,751
1,100,457(4,398)45,377,005

47,754,848

5,644,251(2,337,794)

6,300,048(2,515,788)

Buildings and structures, net

3,306,457

3,784,259

Machinery, equipment and vehicles
Accumulated depreciation

104,070(74,945)

107,170(80,410)

29,12426,759376,891(326,040)

392,491(336,898)

50,85155,593

6,021,604
171,750(97,359)

6,063,224
181,104(88,685)

74,39092,419Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance costs
Total deferred assets
Total assets― 8 ―150,319

19,064

9,632,747

10,041,319

1,165,571
67,192

1,028,445
51,284

1,232,763

1,079,729

145,500
18,993
562,494
1,067,323(4,272)

143,000
14,601
647,621
1,175,569–

1,790,038

1,980,792

12,655,549

13,101,841

38,02545,28638,02545,286

58,070,579

60,901,976

(Thousands of Yen)
Fiscal 2021
(As of March 31, 2021)

Fiscal 2022
(As of March 31, 2022)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,255,232

3,870,228

Short-term loans payable

20,696,600

13,082,700

Current portion of long-term loans payable

1,014,044

2,604,311

21,0001,000,000

Current portion of bonds
Lease obligations

30,98034,201

Income taxes payable

399,719899,770

Provision for warranties for completed construction

185,503

185,469

Other

955,601

1,105,187

26,558,680

22,781,868

Bonds payable

2,303,000

2,300,000

Long-term loans payable

4,904,321

9,820,280

Total current liabilities
Non-current liabilities

Lease obligations

50,55967,647

Provision for directors' retirement benefits

218,520

251,695

Net defined benefit liability

810,289

904,811

Other
Total non-current liabilities
Total liabilities

64,878

115,459

8,351,569

13,459,893

34,910,250

36,241,762

2,077,500

2,077,500

Net assets
Shareholders' equity
Capital stock
Capital surplus

2,343,929

2,592,335

Retained earnings

18,836,131

20,718,007

Treasury shares(270,372)(813,488)

22,987,189

24,574,354

20,50018,000Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets― 9 ―20,50018,000152,640

67,86023,160,329

24,660,214

58,070,579

60,901,976

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Thousands of Yen)
Fiscal 2021
(From April 1, 2020 toMarch 31, 2021)

Fiscal 2022
(From April 1, 2021 toMarch 31, 2022)

Net sales

47,154,284

54,884,855

Cost of sales

38,981,890

44,399,017

Gross profit

8,172,393

10,485,838

Selling, general and administrative expenses

5,872,795

6,462,958

Operating income

2,299,597

4,022,879

Non-operating income
Interest income

1,516

826

Dividends income

5,653

5,698

Office work fee

27,34531,859Subsidy income

27,298

4,138

Other

42,32822,393

Total non-operating income

104,142

64,914

281,191

237,522

Commission for syndicate loan

9,966

12,529Other

16,70827,535

Total non-operating expenses

307,866

277,587

2,095,873

3,810,207

5,623

23,133Non-operating expenses
Interest expenses

Ordinary income
Extraordinary income
Gain on sales of non-current assets
Consumption taxes refund

707,744–

Total extraordinary income

713,368

23,133

Loss on retirement of non-current assets

26,90521,002

Loss on cancellation of lease contracts

2,254

358

Impairment loss

122,561–

Total extraordinary loss

151,721

21,360Net income before income taxes

2,657,519

3,811,980

762,477

1,313,218

Extraordinary loss

Income taxes – current
Income taxes for prior periods

222,919–

Income taxes – deferred(52,820)(85,127)

Total income taxes

932,576

1,228,091

Net income

1,724,943

2,583,889

Net income attributable to owners of the parent

1,724,943

2,583,889― 10 ―

(Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Fiscal 2021
(From April 1, 2020 toMarch 31, 2021)
Net income

Fiscal 2022
(From April 1, 2021 toMarch 31, 2022)

1,724,943

2,583,889

20,500(2,500)

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

20,500(2,500)1,745,443

2,581,389

1,745,443

2,581,389––

Comprehensive income attributable to:Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests― 11 ―

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2021 (From April 1, 2020 to March 31, 2021)

Capital stock
Balance as of the beginning of the period
Cumulative effects of changes in accounting
policies
Restated balance
Changes of items during the period
Dividends from surplus
Net income attributable to owners of the parent
Exercise of subscription rights to shares
Net changes to items other than shareholder equity
Total changes of items during the period
Balance as of the end of the period

Balance as of the beginning of the period
Cumulative effects of changes in accounting
policies
Restated balance
Changes of items during the period
Dividends from surplus
Net income attributable to owners of the parent
Exercise of subscription rights to shares
Net changes to items other than shareholder equity
Total changes of items during the period
Balance as of the end of the period

2,077,500(Thousands of Yen)
Shareholders' equity
Retained
Total shareholders'Capital surplus
Treasury sharesearnings
equity2,291,248
17,905,056(301,297)
21,972,507(125,241)

2,077,500

2,291,248

17,779,815(125,241)(301,297)

21,847,265

30,925(668,627)
1,724,943
83,60730,925(270,372)

1,139,923
22,987,189(668,627)
1,724,943
52,681—
2,077,500

52,681
2,343,929

1,056,316
18,836,131

Accumulated othercomprehensive income
Valuation
Total
Subscription
difference on
accumulated rights to shares Total net assets
availableotherfor-salecomprehensive
securities
income——170,620
22,143,127(125,241)——

170,620(17,980)
20,50020,50020,500― 12 ―

20,50020,50020,500(17,980)
152,640

22,017,885(668,627)
1,724,943
65,627
20,5001,142,443
23,160,329

Fiscal 2022 (From April 1, 2021 to March 31, 2022)

Capital stock
Balance as of the beginning of the period
Changes of items during the period
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury shares
Disposal of treasury shares
Exercise of subscription rights to shares
Net changes to items other than shareholder
equityTotal changes of items during the period
Balance as of the end of the period

Balance as of the beginning of the period
Changes of items during the period
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury shares
Disposal of treasury shares
Exercise of subscription rights to shares
Net changes to items other than shareholder
equityTotal changes of items during the period
Balance as of the end of the period

2,077,500(Thousands of Yen)
Shareholders' equity
Retained
Total shareholders'Capital surplus
Treasury sharesearnings
equity2,343,929
18,836,131(270,372)
22,987,189(702,013)
2,583,889(700,997)
12,059145,821(702,013)
2,583,889(700,997)
12,059394,227

1,881,876
20,718,007(543,116)(813,488)

1,587,165
24,574,354

Subscription
rights to shares

Total net assets

152,640

23,160,329(84,780)(702,013)
2,583,889(700,997)
12,059309,447

248,405—
2,077,500

248,405
2,592,335

Accumulated othercomprehensive income
Valuation
Total
difference on
accumulated
availableotherfor-salecomprehensive
securities
income20,50020,500(2,500)(2,500)(2,500)18,000(2,500)18,000― 13 ―(2,500)(84,780)
67,8601,499,885
24,660,214

(4) Consolidated Statements of Cash Flows(Thousands of Yen)

Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortization of goodwill
Impairment loss
Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in provision for warranties for completed
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 investing activities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
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 exercise ofsubscription rights to shares
Purchase of treasury shares
Proceeds from sale of treasury 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― 14 ―

Fiscal 2021
(From April 1, 2020 toMarch 31, 2021)

Fiscal 2022
(From April 1, 2021 toMarch 31, 2022)

2,657,519
284,114137,126
122,561

3,811,980
283,996
137,126–

14,94133,17534,035(33)(7,447)89,351(7,169)281,191(5,623)
26,905
115,295
564,481
5,865
387,649
4,700,799
7,237(281,327)(945,366)
3,481,342(2,236)
94,521(6,524)
237,522(23,133)
21,002(201,408)(4,461,971)
614,996
65,083604,097
8,948(237,706)(819,826)(444,486)–(365,667)
7,437(32,246)
21,421(43,500)
2,192(410,362)

200,000(710,029)
109,495(9,114)
4,391(43,853)(32,659)(481,769)(1,522,000)
2,519,000(894,558)
500,000(21,000)(7,613,900)
9,623,000(3,207,374)
1,000,000(24,000)

65,627309,447––(668,506)(37,424)(58,861)
3,012,118
10,336,889
13,349,007(700,997)
12,059(701,501)(35,949)(1,339,215)(2,265,472)
13,349,007
11,083,535

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Changes in Accounting Policies)(Application of Accounting Standard and Other Standards for Revenue Recognition)
The Grandy House Group has adopted the "Accounting Standard for Revenue Recognition" (ASBJ
Statement No. 29, issued on March 31, 2020; hereinafter, "Revenue Recognition Accounting Standard") andother standards since the beginning of the consolidated fiscal year under review. Accordingly, we have decided
to recognize revenue of the amount that we expect to receive in exchange for promised goods or services upon
the transfer of control over such promised goods or services to the customer. With this change of accounting
policies being applied retroactively in principle, the previous consolidated fiscal year is presented in the
consolidated financial statements after the relevant retroactive application.
Due to the application of the Revenue Recognition Accounting Standard and other standards, "Notes andaccounts receivable – trade," which was presented under "Current assets" in the consolidated balance sheet forthe previous fiscal year, has been included and presented under "Notes and accounts receivable – trade andcontract assets" since the consolidated fiscal year under review. As a result, compared to figures prior to theretroactive adoption of such standards, for the previous consolidated fiscal year, net sales rose by ¥129,300
thousand with cost of sales decreasing by ¥220,264 thousand, selling, general and administrative expenses
increasing by ¥8,953 thousand, operating income rising by ¥340,610 thousand, and ordinary income and net
income before income taxes each decreasing by ¥10,756 thousand. With the cumulative impact reflected in net
assets at the beginning of the previous consolidated fiscal year, the balance of retained earnings at the
beginning of the previous fiscal year in Consolidated Statements of Changes in Net Assets decreased by¥125,241 thousand.
In Consolidated Statement of Cash Flows for the previous consolidated fiscal year, net income before
income taxes decreased by ¥10,756 thousand, an increase in the provision for warranties for completed
construction increased by ¥8,953 thousand, and the reduction in inventories increased by ¥1,803 thousand.
The impact on information per share is described in the relevant section (in Japanese only).
(Application of Accounting Standard for Fair Value Measurement)
The Grandy House Group has adopted the "Accounting Standard for Fair Value Measurement" (ASBJ
Statement No. 30, issued on July 4, 2019; hereinafter, "Accounting Standard for Fair Value Measurement")
and other standards since the beginning of the consolidated fiscal year under review. Accordingly, we havedecided to apply new accounting policies stipulated by the Accounting Standard for Fair Value Measurement
and other standards in the future, pursuant to the transitional treatments stipulated in paragraph 19 of the
Accounting Standard for Fair Value Measurement and paragraph 44-2 of the Accounting Standard for
Financial Instruments (ASBJ Statement No. 10, issued on July 4, 2019).
There is no impact on the Consolidated Financial Statements.
(Additional Information)(Accounting Estimates concerning the Impact of COVID-19)
The Group makes its accounting estimates based on the information available as of the date of theconsolidated financial statements. At present, the COVID-19 outbreak has had a limited impact on the Group's
financial results and we assume that there will be no material impact in and after the next consolidated fiscal
year, either.
In the case, however, that the impact of COVID-19 becomes more serious, it may affect our financial
position and operating results for the next consolidated fiscal year onward.

― 15 ―

(Segment Information)
1. Overview of reportable segments
The reportable segments of the Group are components for which separate financial information is available
and whose operating results are regularly reviewed by the Company's Board of Directors when making decisions
about the allocation of management resources and assessing performance.
The Grandy House Group is engaged in the following businesses: new home sales, existing home sales, homerenovation, construction material sales and real estate leasing (all of which are operated in Japan). A portion or allof operations for new home sales, existing home sales and home renovation are conducted by subsidiaries. Fromthe perspective of similarity, relationships, and sharing of common management resources, these three businesses
are regarded as one business segment, Real Estate Sales. The Company devises overall strategies for this realestate sales segment and conducts business activities.
Accordingly, the Group's three reportable segments are classified as Real Estate Sales, Construction Material
Sales, and Real Estate Leasing.
The Real Estate Sales business includes sales of new homes (including building contracts and sale of land,etc.) and existing homes and home renovation. The Construction Material Sales business comprises the
production and sale of pre-cut materials for housing and sale of construction materials and home facilities andequipment. In the Real Estate Leasing business, activities comprise the leasing of office, homes, related
properties, and parking facilities, etc.
2. Calculation method of net sales, profit or loss, assets, liabilities, and other items by reportable segment
The accounting method for reportable segments complies with the accounting policy that is applied to the
preparation of consolidated accounting statements. Segment profit and loss are based on ordinary income. Intersegment sales or transfers are calculated based on market prices.
As described in (Changes in accounting policies), The Grandy House Group has adopted the "AccountingStandard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) and other standards
since the beginning of the consolidated fiscal year under review. Accordingly, we changed accounting treatment
methods concerning revenue recognition and, similarly, changed the calculation method for business segment
profits.
Segment Information concerning the previous consolidated fiscal year is presented after applying the
calculation method for profits after the change.
3. Information concerning the amounts of net sales, profit or loss, assets, liabilities, and other items by reportablesegment
Fiscal 2021 (From April 1, 2020 to March 31, 2021)(Thousands of Yen)
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

44,244,908

2,642,889

266,486

55,6802,919,019

80,653Adjustments(Note 1)

AmountReported on
Consolidated
Financial
Statements(Note 2)47,154,284—

47,154,284

3,055,353(3,055,353)

—

Total

Net sales
Sales to outside customers
Inter-segment sales or transfers

44,300,588

5,561,909

347,139

50,209,637(3,055,353)

47,154,284

Segment profit

Total

1,734,345

224,682

153,686

2,112,714(16,840)

2,095,873

Segment assets

41,750,600

2,114,346

4,045,500

47,910,448

10,160,130

58,070,579

Segment liabilities

33,302,053

1,568,159

423,722

35,293,935(383,685)

34,910,250

Depreciation and amortization

207,374

24,46652,273

284,114—284,114

Amortization of goodwill

137,126——

137,126—

137,126

Other items

Interest income

1,513

2

—

1,516

—

1,516

Interest expenses

274,336

5,992

862

281,191—

281,191

Increase in property, plant and equipment
and intangible assets

208,893

2,055

169,543

380,492—

380,492― 16 ―

Fiscal 2022 (From April 1, 2021 to March 31, 2022)(Thousands of Yen)
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

51,024,739

3,577,749

282,366

50,0404,097,718

81,273Adjustments(Note 1)

AmountReported on
Consolidated
Financial
Statements(Note 2)54,884,855—

54,884,855

4,229,032(4,229,032)

—

Total

Net sales
Sales to outside customers
Inter-segment sales or transfers

51,074,779

7,675,468

363,640

59,113,887(4,229,032)

54,884,855

Segment profit

Total

3,272,867

405,997

118,220

3,797,085

13,1213,810,207

Segment assets

45,425,009

2,859,339

4,153,668

52,438,017

8,463,959

60,901,976

Segment liabilities

34,177,530

2,193,432

441,236

36,812,198(570,436)

36,241,762

Depreciation and amortization

209,619

18,85955,517283,996—

283,996

Amortization of goodwill

137,126——

137,126—

137,126

Other items

Interest income

823

2

—

826

—

826

Interest expenses

231,459

5,280

782

237,522—

237,522

126,169

223,072

779,413—779,413

Increase in property, plant and equipment
430,172
and intangible assets
Note 1: Details of adjustments are presented as follows.

Segment profit(Thousands of Yen)
Fiscal 2021
Eliminations of inter-segment transactions
Total

Fiscal 2022
(16,840)

13,121(16,840)

13,121

Segment assets(Thousands of Yen)
Fiscal 2021

Fiscal 2022

Eliminations of inter-segment receivables(378,876)(570,436)

Eliminations of inter-segment unrealized profit(64,534)(56,877)

10,603,541

9,091,272

10,160,130

8,463,959

Corporate assets*
Total* Corporate assets mainly comprise cash and deposits as well as investment securities which are not attributable to reportable segments.

Segment liabilities(Thousands of Yen)
Fiscal 2021
Eliminations of inter-segment payables
Total

Fiscal 2022
(383,685)(570,436)(383,685)(570,436)

Note 2: Segment profit has been adjusted with the ordinary income described in consolidated financial statements.

― 17 ―