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 2015 Ending September 30, 2014 (Japanese GAAP)
November 4, 2014
Company Name:Grandy House Corporation
Stock Exchange Listing:Tokyo Stock Exchange
Securities Code:8999
URL
http://www.grandy.co.jp
Representative:
Hiroyuki Murata, President
Inquiries:
Atsuo Saito, Senior Managing Director
TEL: +81-28-650-7777
Scheduled date of quarterly securities report filing:
November 7, 2014―
Scheduled date of dividend payment commencement:
Preparation of quarterly supplementary explanatory materials:
None
Quarterly results briefing held:
Yes (institutional investors and analysts)(Figures are rounded down to the nearest million yen unless otherwise stated)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2015
(April 1, 2014 to September 30, 2014)(Percentage figures show the year-on-year increase (decrease).)(1) Consolidated Operating Results
Six months ended
September 30, 2014
Six months ended
September 30, 2013

Net Sales(¥ million)

Note: Comprehensive income%

Operating Income(¥ million)%

Ordinary Income(¥ million)%

Net Income(¥ million)%

17,931

(2.7)

1,005

(30.8)

1,054(30.2)

640(30.7)

18,423

13.5

1,453

24.1

1,510

26.3

923

37.3

Six months ended September 30, 2014: ¥623 million (-32.5%) Six months ended September 30, 2013: ¥923 million (37.3%)

Net Income per Share(¥)

Six months ended
September 30, 2014
Six months ended
September 30, 2013

Net Income per Share(Diluted)
(¥)

22.26

―

32.09

―

(2) Consolidated Financial Position
Total Assets(¥ million)

September 30, 2014
March 31, 2014
Reference: Shareholders’ equity

33,88833,524

14,074
13,655

Shareholders’ Equity Ratio
%
41.5
40.7

Net Assets per Share(¥)
488.20474.53September 30, 2014: ¥14,049 million March 31, 2014: ¥13,655 million

2. Dividends

Fiscal 2014
Fiscal 2015
Fiscal 2015 (Forecast)

Net Assets(¥ million)

Annual Dividend per Shares
1Q-End2Q-End3Q-EndPeriod-End

Total

(¥)

(¥)
0.00
0.00

(¥)

―

(¥)
8.00

(¥)
8.00

―

8.00

8.00

―
―

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

3. Consolidated Financial Forecasts for Fiscal 2015 (April 1, 2014 to March 31, 2015)

Full Fiscal YearNet Sales(¥ million)%
38,000
2.0(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)%(¥)
2,200 (25.0)
2,340 (22.9)
1,460 (17.2)
50.73

Note: Revisions to the most recently announced financial forecasts: None* Explanatory Notes(1) Changes in the number 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 as of the September 30, 2014
period-end (including treasury shares)
September 30, 2014
2) Number of treasury shares
3) Average number of shares issued and outstanding Six months ended
for the period
September 30, 2014

None
None
None
None

30,823,200 shares March 31, 201430,823,200 shares

2,046,198 shares March 31, 2014

2,046,198 shares

28,777,002 shares

Six months ended
September 30, 2013

28,777,002 shares* Disclosure concerning the implementation status of quarterly review proceduresThis Quarterly Consolidated Financial Report is exempt from the quarterly review procedures required by the Financial Instruments and Exchange Act ofJapan. At the time of this report’s disclosure, the quarterly review process for quarterly consolidated financial statements under the Financial Instruments
and Exchange Act has not been completed.

* Explanation concerning the appropriate use of forecasts and other special instructions
The forecast data presented in this report are based on currently available information and contain a significant number of uncertainties. Actual results may
differ from forecast data due to changes in business conditions.

Attachment Materials: Table of Contents
1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS ..................................................................... 2(1) Explanation regarding Operating Results .......................................................................................................... 2(2) Explanation regarding Financial Position .......................................................................................................... 3(3) Explanation regarding Future Prospects Including Consolidated Financial Forecasts ...................................... 3
2. MATTERS CONCERNING SUMMARY INFORMATION (Notes) ....................................................................... 3(1) Changes of Significant Subsidiaries during the Term ....................................................................................... 3(2) Adoption of Specific Accounting Methods for Preparation of the Quarterly Consolidated Financial
Statements ......................................................................................................................................................... 3(3) Changes in Accounting Policies, Accounting Estimates, and Restatements of Revisions ................................ 3
3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS............................................................................ 4(1) Quarterly Consolidated Balance Sheets ............................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ........ 6(Quarterly Consolidated Statements of Income)................................................................................................ 6(Quarterly Consolidated Statements of Comprehensive Income) ...................................................................... 7(3) Consolidated Statements of Cash Flows ............................................................................................................ 8(4) Notes to Quarterly Consolidated financial Statements ...................................................................................... 9(Notes on Going Concern Assumptions) ........................................................................................................... 9(Notes on Significant Changes in Amount of Shareholders’ Equity)................................................................. 9(Segment and Other Information) ...................................................................................................................... 9-1-

1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
During the six months ended September 30, 2014, the Japanese economy continued to see a moderate recovery
buoyed by improvement in the employment and income environment. However, the future of the economy remained
uncertain and recovery from a temporary drop in demand due to the increase in Japanese consumption tax was slow,
affected by rising prices caused by yen depreciation.
In the housing sector, home orders were sluggish, with a year-on-year decrease in new housing starts for sevenconsecutive months until September due to the prolonged influence of the above-mentioned increase in Japanese
consumption tax, despite there being measures implemented in order to mitigate the burden of the increase inJapanese consumption tax, such as expanded income tax credit for housing loans and a provision of benefits forhousing acquisition (housing allowances).
Against this background, the Grandy House Group worked diligently to expand its operating base and increase
market share in line with its theme of “further strengthening the Group’s core business (real estate sales),” andachieved total sales of 10,000 new homes in September for the first time since 1996. However, during the period
under review, sales of new homes were generally sluggish until summer affected by the increase in Japanese
consumption tax, except for a sales increase in Chiba Prefecture and another priority area, in spite of stable orders
for building materials and remodeling. As a result, the Group recorded decreased revenue and profit, unable tocompensate for the decline in the first quarter.
As a result of these factors, the Grandy House Group’s consolidated results for the second quarter of Fiscal
2015 were as follows. Net sales were ¥17,931 million, down 2.7% from the same period of the previous fiscal year;
operating income fell to ¥1,005 million, a decline of 30.8%; ordinary income was ¥1,054 million, a decline of
30.2%; and net income totaled ¥640 million, a decline of 30.7%.
Results by business segment are presented as follows.
Real Estate Sales
In the new home sales business, we focused on sales promotion activities by holding events to attract
customers, such as the Countdown Campaign toward the Achievement of Total Sales of 10,000 Homes and theSummer Campaign. We strengthened our sales structure by starting sales activities at the Utsunomiya Higashi
Branch (Nakaimaizumi, Utsunomiya, Tochigi Prefecture) and opening the Grandy Plaza Utsunomiya in July, ashowroom where customers can really experience the structure, functions and safety of buildings. However, we
could not compensate for the decline in the first quarter, which was strongly affected by the increase in Japanese
consumption tax, although orders recovered in and after August allowing us to achieve record-high quarterly sales inthe second quarter. Existing home sales were likewise affected by the drop in demand due to the increase in demand
experienced prior to the increase in Japanese consumption tax and the inability of the purchase environment toimprove. As a result, new home sales for the six months ended September 30, 2014, were down 12 units at 560 units
and existing home sales were down 10 units at 59 units on a year-on-year basis.
Accounting for each of these factors, revenues in the real estate sales segment declined 3.4% year-on-year to¥16,511 million. Segment profit lowered to ¥949 million, down 32.9% from the same period of the previous fiscal
year.
Construction Material Sales
In the construction material sales segment, the price of wood, a major construction material, continued to
decline due to a drop in housing starts caused by a pullback following the increased demand experienced prior to theincrease in Japanese consumption tax. In sales, we carried out the careful sales targeting of customers and promoted
the selling of processed construction materials in addition to pre-cut materials. As a result of these initiatives that we
took, for the six months ended September 30, 2014, revenues in the construction material sales segment increased
6.2% year-on-year to ¥1,279 million. Segment profit rose to ¥77 million, up 49.0% from the same period of theprevious fiscal year. Both revenues and profit increased.
Real Estate Leasing
In the real estate leasing segment, the vacancy rate of office buildings for leasing continued to be low around
Utsunomiya as a major business development area and the leasing market remained stable. Under thesecircumstances, there was no significant acquisition or sale of properties for leasing during the period under review,
and we worked to obtain new clients and increase the use of pay-by-the-hour parking lots. As a result, for the six
months ended September 30, 2014, revenues in the real estate leasing segment totaled ¥140 million, up 7.9% fromthe same period of the previous fiscal year. Segment profit rose by 20.0% to ¥86 million.

-2-(2) Explanation regarding Financial Position
a. Balance Sheet
Total assets stood at ¥33,888 million as of September 30, 2014, up ¥363 million compared with the end of theprevious fiscal year. This upswing was mainly due to an increase in the current assets reflecting the higher balanceof real estate for sale as of September 30, 2014, resulted from a slowdown in the growth of orders after the
consumption tax increase and due to the pullback following the demand surge experienced prior to the tax rise.
Total liabilities stood at ¥19,814 million as of September 30, 2014, down ¥55 million compared with the end of
the previous fiscal year. The increase in non-current liabilities was mainly due to an increase in long-term loans
payable (working capital), and the decrease in current liabilities was mainly due to a decrease in income taxes
payable, which was caused by the payment of income taxes.
Total net assets stood at ¥14,074 million as of September 30, 2014, up ¥418 million compared with the end of
the previous fiscal year. After accounting for the payment of dividends, this increase was largely attributable to net
income of ¥640 million for the six months under review.
b. Cash Flows
Cash flows from operating activities resulted in an increase in cash and cash equivalents, and cash flows frominvesting and financing activities resulted in decreases in cash and cash equivalents, respectively, for the six months
ended September 30, 2014. As a result, the balance of cash and cash equivalents at the end of the period amounted to¥5,727 million, up ¥172 million from the end of the previous year. The status of the Company’s cash flows andfactors contributing to changes therein for the six months ended September 30, 2014, are as follows.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥256 million (decrease of ¥725 million for the six
months ended September 30, 2013). This was mainly due to net income before income taxes and an increase in notes
and accounts payable-trade in spite of an increase in inventories and income taxes paid.
(Cash Flows from Investment Activities)
Net cash used in investment activities amounted to ¥57 million (decrease of ¥109 million for the six months
ended September 30, 2013). This was mainly due to purchase of property, plant and equipment for the opening of abranch and a showroom (Nakaimaizumi, Utsunomiya, Tochigi Prefecture) and the lodgment of deposits paid asguarantee in accordance with provisions stipulated under Japan’s Act on Assurance of Performance of Specified
Housing Defect Warranty while assets (pay-by-the-hour parking lots in Utsunomiya, Tochigi Prefecture) were sold.
(Cash Flows from Financing Activities)
Net cash used in financing activities amounted to ¥26 million (increase of ¥824 million for the six months
ended September 30, 2013). This was mainly due to dividend payment in spite of net increase in long-term loans
payable.
(3) Explanation regarding Future Prospects Including Consolidated Financial Forecasts
There is no change to financial forecasts announced on October 24, 2014
2. MATTERS CONCERNING SUMMARY INFORMATION (Notes)(1) Changes of 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 Restatements of Revisions
Not applicable.

-3-3. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2014(As of March 31, 2014)

Second Quarter of FY2015(As of September 30, 2014)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade

5,562,541
584,984

5,728,189
576,728

Real estate for sale
Costs on uncompleted construction contracts

8,903,433
9,388

10,617,202
8,431

Real estate for sale in process
Merchandise and finished goods

7,373,275
174,064

5,962,053
188,018

Raw materials and supplies
Deferred tax assets

138,064
126,944

89,232
104,963

Other
Allowance for doubtful accounts

321,913344,975(4,314)(4,196)23,190,415

23,615,481

Buildings and structures, net
Machinery, equipment and vehicles, net

3,244,425
12,0093,201,920
10,403Tools, furniture and fixtures, net
Land42,0385,817,230

44,0805,779,669

141,378—

129,6170

9,257,082

9,165,692

68,487

73,111

Investment securities
Long-term loans receivable

744,408
41,707

718,42140,748Deferred tax assets
Other

100,514155,166

125,104
182,825

1,008,979(32,818)

1,033,927

10,334,548

10,272,731

33,524,964

33,888,213

Total current assets
Non-current assets
Property, plant and equipment

Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-(33,171)(Thousands of Yen)FY2014(As of March 31, 2014)

Second Quarter of FY2015(As of September 30, 2014)

Liabilities
Current liabilities
Accounts payable for construction contracts
Short-term loans payable

2,636,832
13,347,080

2,780,980
13,416,930

Current portion of long-term loans payable
Lease obligations

410,495
49,770433,864
49,245

Income taxes payable
Provision for warranties for completed construction

735,391
63,040297,472
49,209Other666,258

654,074

17,908,869

17,681,776

1,461,426
103,482

1,596,920
89,473

Provision for directors’ retirement benefits
Net defined benefit liability

45,166286,655

56,354
329,775

Other

63,82559,913

Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations

Total non-current liabilities

1,960,555

2,132,435

19,869,425

19,814,212

Capital stock
Capital surplus

2,077,500
2,205,165

2,077,500
2,205,165

Retained earnings
Treasury shares

9,712,087

10,122,350

Total shareholders’ equity

13,642,938(351,814)

14,053,201

Valuation difference on available-for-sale securities

12,600Total accumulated other comprehensive income

12,600(4,200)Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Subscription rights to shares
Total net assets
Total liabilities and net assets-5-(351,814)(4,200)—25,00013,655,539

14,074,001

33,524,964

33,888,213

(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of Yen)
Six months ended September 30, Six months ended September 30,
2013 (From April 1, 20132014 (From April 1, 2014
to September 30, 2013)
to September 30, 2014)
Net sales
Cost of sales

18,423,861
14,909,209

17,931,904
14,790,130

Gross profit

3,514,652

3,141,774

Selling, general and administrative expenses

2,061,480

2,136,051

Operating income

1,453,172

1,005,722

715
138

711
2,141

Operations consignment fee
Office work fee

98,41974,252

99,626
65,180Other

12,341

21,638

Total non-operating income

185,867

189,298

Non-operating income
Interest income
Dividend income

Non-operating expenses
Interest expenses

128,550

140,565

Total non-operating expenses

128,550

140,565

1,510,489

1,054,456

—
6,817

1,070
6,239

Ordinary income
Extraordinary loss
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on cancellation of leases
Total extraordinary loss
Income before income taxes and minority interests

—

1,143

6,817

8,453

1,503,671

1,046,002

Income taxes – current
Income taxes – deferred

570,895
9,229

398,932
6,590

Total income taxes

580,124

405,523

Income before minority interests

923,546

640,479

Net income

923,546

640,479-6-

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Six months ended September 30, Six months ended September 30,
2013 (From April 1, 20132014 (From April 1, 2014
to September 30, 2013)
to September 30, 2014)
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income

923,546

640,479—(16,801)—

Comprehensive income

923,546

623,677

923,546—

623,677—

Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-7-(16,801)

(3) Consolidated Statements of Cash Flows(Thousands of Yen)
Six months ended September 30, Six months ended September 30,
2014 (From April 1, 20142013 (From April 1, 2013
to September 30, 2014)
to September 30, 2013)

Net cash provided by (used in) operating activities
1,503,671
113,374

1,046,002
117,361

Stock compensation expense
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit obligations—
28,97425,000—13,20011,187938
524(13,831)471

Interest and dividends income
Interest expenses(854)
128,550—(2,853)
140,565
1,070

6,817

6,239
7,517

Net income before income taxes
Depreciation and amortization—

Loss (gain) on sale 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(108,983)

SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid

(1,999,758)
375,372(266,711)
144,147

1,465(17,727)

63,294

1,241,559

854

2,853

(145,933)(140,718)(38,018)—(57,192)
37,757(60,612)(29,010)(109,192)(57,580)(643,766)

Net cash provided by (used in) operating activities(725,550)

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets(11,890)(4,400)
2,725

Payments of loans receivableCollection of loans receivable
Payments for guarantee deposits
Other payments(9,630)12,633

Other proceeds
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

43,120(847,358)
256,336(17,312)—1,217(5,040)12,000Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

1,351,300—

464,300

Repayment of long-term loans payable
Cash dividends paid

(272,180)(305,437)(229,549)(25,430)

Repayments of lease obligations
Net cash provided by (used in) financing activities

824,140

Net increase (decrease) in cash and cash equivalents(10,602)69,850(229,419)(25,401)(26,108)

172,647

Cash and cash equivalents at beginning of the period

5,207,745

5,554,541

Cash and cash equivalents at end of the period

5,197,142

5,727,189-8-

(4) Notes to Quarterly Consolidated financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in Amount of Shareholders’ Equity)
Not applicable.
(Segment and Other Information)
Segment Information
I. The six months ended September 30, 2013 (April 1, 2013 to September 30, 2013)
1. Information relating to the amounts of net sales, profit and loss by reportable segment(Thousands of Yen)
Reportable Segment

Amount Recorded on
Quarterly
Consolidated
Statements of Income

Adjustments(Note 1)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

17,088,602

1,204,755

130,503

18,423,861——

1,372,777

40,677

1,413,455(1,413,455)—

17,088,602

2,577,533

171,180

19,837,316(1,413,455)

18,423,861

1,414,086

52,076

71,766

1,537,929(27,440)

1,510,489

Total(Note 2)

Net sales
Sales to outside customers
Intersegment sales and transfers
Total
Segment profit
Notes:

18,423,861

1 Adjustments of segment profit (-¥27,440 thousand) are eliminations of intersegment transactions.
2 Segment profit has been adjusted to ordinary income described in quarterly consolidated statements of income.

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.

II. The six months ended September 30, 2014 (April 1, 2014 to September 30, 2014)
1. Information relating to the amounts of net sales, profit and loss by reportable segment(Thousands of Yen)
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

16,511,905

1,279,122

140,876

Total

Adjustments(Note 1)

Amount Recorded on
Quarterly
Consolidated
Statements of Income(Note 2)

Net sales
Sales to outside customers
Intersegment sales and transfers
Total
Segment profit
Notes:

17,931,904—

17,931,904—

1,479,029

35,8691,514,898(1,514,898)—

16,511,905

2,758,152

176,745

19,446,803(1,514,898)

17,931,904

949,164

77,598

86,107

1,112,869(58,413)

1,054,456

1 Adjustments of segment profit (-¥58,413 thousand) are eliminations of intersegment transactions.
2 Segment profit has been adjusted to ordinary income described in quarterly consolidated statements of income.

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.

-9-