Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience.
Since no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company.
This summary does not constitute any guarantee and will not compensate any losses and/or damage stemming from actions taken based on thesestatements. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.

Consolidated Financial Report
For the Second Quarter of Fiscal 2020 Ending March 31, 2020 (Japanese GAAP)
November 11, 2019
Company Name:Grandy House Corporation
Stock Exchange Listing:Tokyo Stock Exchange
Securities Code:
8999
URL:
https://www.grandy.co.jp
Representative:
Yasuro Hayashi, President
Inquiries:
Nobuyasu Takeuchi, Director & General Administration Manager
TEL: +81-28-650-7777
Scheduled date of quarterly securities report filing:
November 13, 2019
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
Yes
Quarterly results briefing held:
Yes (For institutional investors and analysts)(Figures are rounded down to the nearest million yen unless otherwise stated.)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2020
(April 1, 2019 to September 30, 2019)(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)%

22,7697.1

1,254(14.4)

1,341(12.5)

871

5.0

21,268

(4.6)

1,464

10.1

1,532

11.2

830

(10.6)

Six months ended
September 30, 2019
Six months ended
September 30, 2018
Note: Comprehensive income

Six months ended September 30, 2019: ¥865 million (5.0%)
Six months ended September 30, 2018: ¥824 million (-10.8%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Six months ended
September 30, 2019
Six months ended
September 30, 2018

30.19

29.80

28.79

28.33

Total Assets(¥ million)
54,641
46,864

Net Assets(¥ million)
21,48821,124(2) Consolidated Financial Position

September 30, 2019
March 31, 2019
Reference: Shareholders' equity

Shareholders' Equity Ratio
%
39.0
44.7

Net Assets per Share(¥)
736.89725.35September 30, 2019: ¥21,301 million
March 31, 2019:¥20,932 million

2. Dividends
1Q-End2Q-End(¥)——

Fiscal 2019
Fiscal 2020
Fiscal 2020 (Forecast)

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

Period-End

Total

(¥)
18.00

(¥)
18.00

23.00

23.00

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

3. Consolidated Financial Forecasts for Fiscal 2020 (April 1, 2019 to March 31, 2020)

Net Sales

Full Fiscal Year(¥ million)
48,500%
9.1(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)
%
(¥)
3,200
2.2
3,400
3.4
2,200
6.5
76.24

Note: Revisions to the most recently announced financial forecasts in the current quarter: None* Explanatory Notes(1) Changes of important subsidiaries during the period(changes in specified subsidiaries resulting in a change in the scope of consolidation): None
Newly included: —Excluded: —(2) Adoption of specific methods for preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and restatements
1) Changes in accounting policies in connection with revision to accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatements:(4) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding
September 30,
as of the period-end (including treasury shares) 2019
September 30,
2) Number of treasury shares
3) Average number of shares issued andoutstanding for the period

2019
Six months ended
September 30,
2019

None
None
None
None

30,823,200 shares

March 31, 201930,823,200 shares

1,915,245 shares

March 31, 2019

1,965,245 shares

28,879,384 shares

Six months ended
September 30,
201828,837,955 shares*This consolidated quarterly financial report is not subject to auditing by a certified public accountant or an audit firm.

*

Explanation concerning the appropriate use of forecasts and other special instructions
Results forecasts and other forward-looking statements contained in this report are based on assumptions, beliefs, anduncertainties in light of information available to the Company's management as of the publication date. Actual results may
differ materially from forecasts due to a variety of factors. Therefore, the Company does not guarantee the accuracy of
forecasts and other forward-looking statements and its ability to achieve stated targets.

Attachment Materials: Table of Contents
1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS.................................................................. 2(1) Explanation regarding Operating Results ................................................................................................................ 2(2) Explanation regarding Financial Position ................................................................................................................ 3(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts ............................................ 4
2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES................................................. 5(1) Quarterly Consolidated Balance Sheets................................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............. 7(Quarterly Consolidated Statements of Income) .....................................................................................................7(Consolidated cumulative second quarter) ........................................................................................................ 7(Quarterly Consolidated Statements of Comprehensive Income)............................................................................8(Consolidated cumulative second quarter) ........................................................................................................ 8(3) Quarterly Consolidated Statements of Cash Flows ................................................................................................. 9(4) Notes to Quarterly Consolidated Financial Statements ......................................................................................... 10(Notes on Going Concern Assumptions) ...............................................................................................................10(Notes on Significant Changes in the Amount of Shareholders' Equity) ...............................................................10(Segment Information) ..........................................................................................................................................10―1―

1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
During the six months ended September 30, 2019, the Japanese economy was considered to be on a moderate
recovery trend despite some weaknesses mainly in exports.
In the housing sector, new housing starts exceeded those in the same period of the previous fiscal year due to thefavorable environment for acquiring new homes including the continuous low levels in the interest rate on housing
loans, and the upcoming increase in the consumption tax. However, there was not significant last-minute demand for
new homes thanks to various measures taken by the government to mitigate abrupt changes in demand around the tax
hike.
Under these circumstances, the Grandy House Group continued to strive to expand and reinforce business underthe basic policy in its second medium-term business plan (from the fiscal year ending March 2019 to the fiscal year
ending March 2021) of "continuous growth through reinforcing the core operation (new homes)" and "expansion ofbusiness through enhancing the stock business."
With regard to new home sales, one of our core operations, we endeavored to strengthen organizational structuresof subsidiaries, boost sales of strategic large housing lots, reinforce our product appeal, expand a business area to
Saitama Prefecture and so on, as well as acquired shares in two business companies in Kawasaki City and made themsubsidiaries for the purpose of expanding into Kanagawa Prefecture. In existing home sales, we continued the effort
to build up product inventory toward expanding home sales.
Through initiatives such as these, both the number of homes sold and net sales of new and existing homes for thesecond quarter increased year-on-year. However, they were not enough to absorb an increase in personnel expenses
associated with investment in human resources toward expanding operations in the future and M&A expenses, and as
a result operating income and ordinary income decreased. Net income attributable to owners of the parent company
increased compared to the same period of the previous fiscal year where an extraordinary loss was recorded.
As a result of these initiatives, the Grandy House Group's consolidated results for the second quarter (cumulative)of Fiscal 2020 were as follows. Net sales were ¥22,769 million, an increase of 7.1% year-on-year; operating income
decreased to ¥1,254 million, a decrease of 14.4% year-on-year; ordinary income was ¥1,341 million, a decrease of
12.5% year-on-year; and net income attributable to owners of the parent company totaled ¥871 million, an increaseof 5.0% year-on-year.
Results by business segment are presented as follows.
a. Real Estate Sales
In the new home sales, we reviewed the structure of officers of subsidiaries in April 2019 for the purpose ofactivating subsidiaries that were not able to achieve the sales plan in the previous period, and made efforts toreinforce the organization and structure and endeavored to increase orders received. Furthermore, toward expanding
sales, we continued to strengthen sales promotion activities with a focus on efforts toward early sales of strategic
large housing lots such as Yotsuba no Mori housing lots (211 lots in Tsukuba in Ibaraki Prefecture) and GRANDBEAT PARK Kaminokawa (141 lots, Kaminokawamachi in Tochigi Prefecture). In terms of products, we continued
to differentiate our products from those of our competitors by pursuing our "Townscape creation" policy that gave atheme to each housing lot and harmonized the distinctive appearance of homes and the uniform image of the housing
lot, and by providing products that are excellent in design, functionality, energy saving and safety.
As for expanding our sales area, we established a sales department at Saitama Regional Office, which waspreviously Saitama Branch (Saitama, Saitama Prefecture), in April 2019 in Saitama Prefecture, where contributions
are expected to be made on a full scale to operating results from the second half of Fiscal 2020, and started sales ofcompleted homes. Moreover, in July 2019, for the purpose of expanding into Kanagawa Prefecture, we acquired
shares in Plaza House Inc. (Kawasaki in Kanagawa Prefecture) and Welcome House Inc. (Kawasaki in Kanagawa
Prefecture), which operate real estate sales and brokerage businesses primarily along the Den-en-toshi Line, to makethem subsidiaries.
Through initiatives such as these, the number of new homes sold for the second quarter (cumulative) of Fiscal
2020 was 683 homes (an increase of 46 homes year-on-year).
In existing home sales, we continued making efforts to expand existing home sales, and so on. by enhancing
product inventory. Amid competition intensifying related to purchasing, the number of homes in inventory wasalmost above the target as a result of our efforts to reinforce procurement and shorten the period forcommercialization of product by setting up a goal of keeping 80 completed homes in inventory at any time. As aresult, orders received were increasing and the number of homes sold during the six months ended September 30,
2019 was 80 homes (an increase of 8 homes year-on-year).
―2―

As a result of these initiatives, sales in the real estate sales segment increased 8.7% year-on-year to ¥21,252
million. Segment profit decreased to ¥1,193 million, down 12.4% year-on-year.
b. Construction Material Sales
In the construction material sales, new housing starts for wooden houses decreased in the second quarter year-onyear due to a decrease in built-for-rent housing starts and a decrease in owner-occupied housing starts before a rise in
the consumption tax. Wood material prices are on a declining trend under the influence of a decrease in demand, andso on, in the U.S. and China, which are the two largest consuming countries.
Under such circumstances, the Grandy House Group made efforts to improve the gross margin rate of pre-cut
materials, which are main materials, and to increase orders received for home building materials. Sales among theGroup companies increased, but sales to external companies decreased because the selection of customers was
conducted. Meanwhile, profit decreased due to an increase in personnel expenses associated with addition of
manpower starting from the end of the previous period and occurrence of uncollectible accounts receivable despite
the gross margin rate improved.
As a result of these initiatives, sales in the construction material sales segment during the first half of Fiscal 2020
decreased 13.1% year-on-year to ¥1,387 million. Segment profit declined to ¥62 million, down 37.9% year-on-year.
c. Real Estate Leasing
In the real estate leasing, more stores were opened in or relocated to the city center in the office building market
in and around Utsunomiya, which is our main market, and vacancy rates were improving continuously. In theparking lot market, competition remained intense between parking lots in the vicinity.
In this context, the Grandy House Group made efforts to improve the operation rate of existing assets and reducemanagement costs. Consequently, sales in the real estate leasing segment during the second quarter (cumulative) of
Fiscal 2020 were ¥129 million, an increase of 2.0% year-on-year, and segment profit was ¥89 million, an increase of
5.8% year-on-year.
(2) Explanation regarding Financial Position
a. Balance Sheet
As of the end of the second quarter of Fiscal 2020, total consolidated assets increased to ¥54,641 million, an
increase of ¥7,776 million compared to the end of the previous consolidated fiscal year. This was mainly due to anincrease in current assets through the acquisition of large housing lots and others, while making efforts to expand thereal estate sales business and an increase in non-current assets such as goodwill due to the acquisition of shares in
two companies that have been made subsidiaries.
Liabilities increased to ¥33,152 million, up ¥7,411 million compared to the end of the previous consolidated
fiscal year due mainly to an increase in loans payable to fund the acquisition of the above-mentioned housing lots
and the shares in two companies that were made subsidiaries. Furthermore, we are making efforts that are continued
from the previous fiscal year to switch our fund procurement method to financing by bonds for part of our loans inorder to reduce the burden of interest payments and to flexibly use funds.
Total net assets stood at ¥21,488 million as of September 30, 2019. This represents an increase of ¥364 million
from the balance recorded as of March 31, 2019. This is largely due to the acquisition of net income attributable toowners of the parent company despite the payment of dividends.
b. Cash Flows
Cash and cash equivalents (hereinafter, "cash flows") as of the end of the second quarter of Fiscal 2020 decreasedby ¥10 million compared to the end of the previous consolidated fiscal year to ¥9,990 million as a result of decreased
cash flows from operating activities and investing activities, and increased cash flows from financing activities.
Factors contributing to movements in the Company's cash flows during the six months ended September 30,
2019, are as follows.
(Cash Flows from Operating Activities)
Net cash used in operating activities amounted to ¥2,704 million (an increase of ¥708 million for the six months
ended September 30, 2018). This was mainly due to an increase in inventory as a result of the acquisition of large
housing lots, and others, as mentioned above despite an increase in net income before income taxes.

―3―

(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to ¥2,060 million (a decrease of ¥252 million for the six months
ended September 30, 2018). This was mainly due to acquisition of shares in subsidiaries and acquisition of property,
plant and equipment such as building material processing machines.
(Cash Flows from Financing Activities)
Net cash provided by financing activities amounted to ¥4,754 million (a decrease of ¥822 million for the six
months ended September 30, 2018). This was mainly due to an increase in inventory and an increase in loans payableassociated with the acquisition of shares in subsidiaries, and so on, despite the payment of dividends. As mentioned
above, we switched our fund procurement method to financing by bonds for part of our loans.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
As announced on July 8, 2019, Grandy House Corporation decided to acquire shares in Plaza House Inc. andWelcome House Inc., and on July 19, 2019, it acquired those shares and made both companies subsidiaries according
to the announced schedule. The impact of the acquisition on Grandy House Corporation’s consolidated financial
forecasts for the fiscal year ending March 31, 2020, which was announced on May 7, 2019, is expected to beminimal.

―4―

2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2019(As of March 31, 2019)

Second Quarter of FY2020(As of September 30, 2019)

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

10,001,725

10,005,332

547,282553,703

17,322,784

15,704,566

7,244

3,157

7,062,704

14,598,960

Merchandise and finished goods

244,048

245,401

Raw materials and supplies

128,188

129,849

Other

816,802751,466

Allowance for doubtful accounts(3,305)(4,955)36,127,474

41,987,481

3,201,619

3,172,830

Machinery, equipment and vehicles, net

4,171

41,477

Tools, furniture and fixtures, net

68,52363,621

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Land5,576,884

5,767,705

Lease assets, net

80,456

88,212

Construction in progress

1,011

184,6228,932,666

9,318,469–

1,376,460

Total property, plant and equipment
Intangible assets
Goodwill
Other

80,07784,397

Total intangible assets

80,0771,460,858

Investment securities

363,031353,378

Long-term loans receivable

13,701

38,273

Investments and other assets

Deferred tax assets

413,834

466,517

Other

897,508

984,008

Allowance for doubtful accounts(1,030)(9,155)

Total investments and other assets

1,687,045

1,833,023

10,699,789

12,612,350

Bond issuance costs

37,512

41,294

Total deferred assets

37,512

41,294

46,864,776

54,641,127

Total non-current assets
Deferred assets

Total assets―5―

(Thousands of Yen)FY2019(As of March 31, 2019)

Second Quarter of FY2020(As of September 30, 2019)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,132,890

3,400,688

Short-term loans payable

17,324,800

22,246,242

Current portion of long-term loans payable

503,345593,228

Current portion of bonds

21,00021,000

Lease obligations

28,366

31,914

Income taxes payable

544,514337,252

Provision for warranties for completed construction

85,85389,070Other

758,230

640,277

22,398,999

27,359,672

1,545,000

1,834,500

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

881,461

2,963,687

Lease obligations

58,58263,804

Provision for directors' retirement benefits

168,654

185,654

Net defined benefit liability

629,972

679,499

Asset retirement obligations

12,227

12,261

Other
Total non-current liabilities
Total liabilities

45,73053,1693,341,627

5,792,576

25,740,627

33,152,249

2,077,500

2,077,500

Net assets
Shareholders' equity
Capital stock
Capital surplus

2,228,898

2,243,548

Retained earnings

17,011,385

17,363,774

Treasury shares
Total shareholders' equity(337,899)(329,299)

20,979,883

21,355,523

Accumulated other comprehensive income
Valuation difference on available-for-sale securities(47,634)(53,545)

Total accumulated other comprehensive income(47,634)(53,545)

191,900

186,900

21,124,148

21,488,877

46,864,776

54,641,127

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)(Consolidated cumulative second quarter)(Thousands of Yen)
Six months ended
September 30, 2018
(From April 1, 2018 toSeptember 30, 2018)

Six months ended
September 30, 2019
(From April 1, 2019 to
September 30, 2019)

Net sales

21,268,322

22,769,973

Cost of sales

17,351,210

18,829,008

Gross profit

3,917,111

3,940,965

Selling, general and administrative expenses

2,452,308

2,686,863

Operating income

1,464,803

1,254,102

Interest income

452

447

Dividends income

2,953

2,953

Non-operating income

Operations consignment fee

113,897

116,731

Office work fee

75,83881,573

Other

16,332

12,788

Total non-operating income

209,473

214,494

Non-operating expenses
133,404

118,138

Commission for syndicate loan

Interest expenses

3,333

3,485

Other

4,766

5,545

Total non-operating expenses
Ordinary income

141,504

127,170

1,532,772

1,341,426

Extraordinary loss
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on cancellation of lease contracts

–

1,143

7,269

7,645

2,179

9,460

Directors' retirement benefits

300,000–

Total extraordinary loss

309,449

18,248Net income before income taxes

1,223,323

1,323,177

Income taxes – current

378,625

456,875

Income taxes – deferred

14,583(5,466)

Total income taxes

393,208

451,408

Net income

830,114871,769

Net income attributable to owners of the parent company

830,114871,769―7―

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative second quarter)(Thousands of Yen)
Six months ended
September 30, 2018
(From April 1, 2018
to September 30, 2018)
Net income

Six months ended
September 30, 2019
(From April 1, 2019
to September 30, 2019)

830,114871,769

Valuation difference on available-for-sale securities(5,563)(5,910)Total other comprehensive income(5,563)(5,910)824,551865,858

824,551865,858––

Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
company
Comprehensive income attributable to non-controllinginterests―8―

(3) Quarterly Consolidated Statements of Cash Flows(Thousands of Yen)
Six months ended
September 30, 2018
(From April 1, 2018
to September 30, 2018)

Six months ended
September 30, 2019
(From April 1, 2019
to September 30, 2019)

1,223,323

1,323,177

Depreciation and amortization
Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in allowance for doubtful accounts

119,506

127,478(12,974)

17,000(1,438)

2,815

(276)

8,239

Increase (decrease) in net defined benefit liability

32,80849,526

Interest and dividends income(3,405)(3,400)Interest expenses

133,404

118,138–

1,143

Cash flows from operating activities
Net income before income taxes

Loss on sales of non-current assets

7,269

7,645

Decrease (increase) in notes and accounts receivable-trade(13,905)(6,006)

Decrease (increase) in inventories

360,006(3,579,822)

Increase (decrease) in notes and accounts payable-trade(238,714)

91,245

Other(137,399)(71,511)

Subtotal

1,468,203(1,914,330)

Loss on retirement of non-current assets

4,542

4,537

Interest expenses paid

(133,101)(131,900)

Income taxes paid

(631,425)(663,182)

Net cash provided by (used in) operating activities

708,219(2,704,876)(215,117)(128,406)

–

8,779

Purchase of intangible assets
Purchase of shares in subsidiaries resulting in a change inthe scope of consolidation
Collection of loans receivable(2,725)(19,226)–(1,887,100)

574

589

Payments for guarantee deposits(29,190)(32,300)

Other payments(5,873)(2,807)

Other proceeds

94

176

(252,237)(2,060,295)(581,200)

2,809,300

Proceeds from long-term loans payable–

2,500,000

Repayment of long-term loans payable(256,504)(327,891)

Proceeds from issuance of bonds

500,000

300,000

Redemption of bonds
Proceeds from disposition of treasury shares by exercising
subscription rights to shares
Cash dividends paid

(10,500)(10,500)–

18,250(459,942)(518,973)

Interest and dividends income received

Cash flows from investment activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Net cash provided by (used in) investing activities

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

Repayments of lease obligations(14,133)(15,913)

Net cash provided by (used in) financing activities(822,280)

4,754,272

Net increase (decrease) in cash and cash equivalents(366,298)(10,900)

Cash and cash equivalents at beginning of the period

9,813,941

10,001,725

Cash and cash equivalents at end of the period

9,447,642

9,990,825―9―

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in the Amount of Shareholders' Equity)
Not applicable.
(Segment Information)
I. The six months ended September 30, 2018 (April 1, 2018 to September 30, 2018)
1. Information relating to the amounts of net sales, profit and loss by reportable segment
Reportable Segment

Net sales
Sales to outside
customers
Inter-segment sales
and transfers
Total
Segment profit

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

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

19,545,336

1,595,872

127,112

21,268,322–

21,268,322–

1,565,154

41,611

1,606,766(1,606,766)–

19,545,336
1,362,289

3,161,027
100,250

168,724
84,511

22,875,088
1,547,051(1,606,766)(14,279)

21,268,322
1,532,772

Total

Notes: 1 Adjustments of segment profit (−¥14,279 thousand) are eliminations of inter-segment transactions.
2 Segment profit has been adjusted to ordinary income described in quarterly consolidated statements of income.

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.
II. The six months ended September 30, 2019 (April 1, 2019 to September 30, 2019)
1. Information relating to the amounts of net sales, profit and loss by reportable segment
Reportable Segment

Net sales
Sales to outside
customers
Inter-segment sales
and transfers
Total
Segment profit

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

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

21,252,775

1,387,481

129,716

22,769,973–

22,769,973–

1,582,337

42,422

1,624,759(1,624,759)–

21,252,775
1,193,408

2,969,818
62,223

172,139
89,44024,394,733
1,345,073(1,624,759)(3,646)

22,769,973
1,341,426

Total

Notes: 1 Adjustments of segment profit (−¥3,646 thousand) are eliminations of inter-segment 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(Significant changes in the amount of goodwill)In the second quarter of Fiscal 2020, Grandy House Corporation acquired all shares in Plaza House Inc. andWelcome House Inc., and the amount of goodwill in the real estate sales segment was significantly changed.
Consequently, the amount of increase in goodwill resulting from the event was ¥1,376,460 thousand.

― 10 ―