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 First Quarter of Fiscal 2018 Ending March 31, 2018 (Japanese GAAP)
August 3, 2017
Grandy House Corporation
Stock Exchange Listing:Tokyo Stock Exchange
8999
URL:
http://www.grandy.co.jp
Hiroyuki Murata, President
Nobuyasu Takeuchi, Executive Officer Department Manager, Corporate
Inquiries:
TEL: +81-28-650-7777
Administrative Department
Scheduled date of quarterly securities report filing:
August 8, 2017
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
None
Quarterly results briefing held:
None
Company Name:
Securities Code:
Representative:(Figures are rounded down to the nearest million yen unless otherwise stated.)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2018
(April 1, 2017 to June 30, 2017)(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)%

10,195(8.2)

526(36.4)

554(35.5)

370(33.5)

11,101

11.8

827

23.8

859

23.9

557

27.0

Three months ended
June 30, 2017
Three months ended
June 30, 2016
Note: Comprehensive income

Three months ended June 30, 2017: ¥361 million (-35.4%)
Three months ended June 30, 2016: ¥559 million (25.2%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Three months ended
June 30, 2017
Three months ended
June 30, 2016

12.89

12.78

19.38

—

Total Assets(¥ million)
47,17045,682

Net Assets(¥ million)
18,08018,121(2) Consolidated Financial Position

June 30, 2017
March 31, 2017
Reference: Shareholders' equity

Shareholders' Equity Ratio
%
37.9
39.2

Net Assets per Share(¥)
621.34622.78June 30, 2017: ¥17,880 million
March 31, 2017: ¥17,921 million

2. Dividends
1Q-End2Q-End(¥)——

Fiscal 2017
Fiscal 2018
Fiscal 2018 (Forecast)

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

—

Period-End

Total

(¥)
14.00

(¥)
14.00

16.00

16.00

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

3. Consolidated Financial Forecasts for Fiscal 2018 (April 1, 2017 to March 31, 2018)

Net SalesInterim Period
Full Fiscal Year(¥ million)
23,90048,000%
5.7
9.2(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)
%
(¥)
1,540
1.7
1,580
0.6
1,070
4.4
37.18
3,200
17.9
3,300
17.6
2,100
20.4
72.98

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
June 30, 2017as of the period-end (including treasury shares)June 30, 20172) Number of treasury shares
Three months
3) Average number of shares issued andended June 30,
outstanding for the period
2017

None
None
None
None

30,823,200 shares March 31, 201730,823,200 shares

2,046,245 shares March 31, 2017
Three months
28,776,955 shares ended June 30,
2016

2,046,245 shares
28,776,955 shares*This consolidated quarterly financial report is not subject to quarterly review procedures in accordance with the
Financial Instruments and Exchange Act.

*

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 ............................................ 3
2. 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) Notes to Quarterly Consolidated Financial Statements ........................................................................................... 8(Notes on Going Concern Assumptions) .................................................................................................................8(Notes on Significant Changes in the Amount of Shareholders' Equity) .................................................................8(Segment and Other Information)............................................................................................................................8―1―

1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
During the three months ending June 30, 2017, the Japanese economy showed signs of slowly recovering as
positive growth was recorded for five consecutive quarters, including the first three months of this year, followedby continued improvement in the employment and income conditions.
In the housing sector, new housing starts grew steadily due to the interest rate on housing loans remaining atrecord low levels, as well as the continuation of various support measures to promote home acquisition and an
improvement in employment and income conditions, but competition between businesses intensified.
Under these circumstances, the Grandy House Group continued to strive to expand and reinforce businessunder the basic policy (medium-term business plan) of "continuous growth through reinforcing the core operation(new homes)" and "expansion of business through enhancing the stock business."
With regard to new home sales, one of our core operations, we launched full-scale sales of Yotsuba no Mori
(literally, Four-leaf Clover Hill) housing lots (211 lots, Tsukuba, Ibaraki Prefecture), the largest housing lot
development ever implemented by our group built in our designated focus area, which stretches from southern
Ibaraki Prefecture to Kashiwa in Chiba Prefecture, and also built up our product inventory in the Kashiwa area.
We also reviewed our group's sales structure and boosted efficiency by reorganizing branches. Throughinitiatives such as these, the Group's lot orders showed a certain level of recovery from the previous quarter on anorders received basis, but its new home sales and sales profits fell below the figures in the same period of theprevious fiscal year due partly to the impact of a slump remaining from the previous quarter.
In existing home sales, although orders for existing homes exceeded the quarterly average during the previous
fiscal year as a result of our efforts for building up our product inventory and expanding our business inmetropolitan areas, existing home sales and sales profits fell below the figures in the same period of the previous
fiscal year due partly to delay in delivery.
As a result of these initiatives, the Grandy House Group's consolidated results for the first quarter of Fiscal
2018 were as follows. Net sales were ¥10,195 million, down 8.2% from the same period of the previous fiscal
year; operating income declined to ¥526 million, a decrease of 36.4% year-on-year; ordinary income was ¥554
million, a decrease of 35.5% year-on-year; and net income attributable to owners of the parent company totaled¥370 million, a decrease of 33.5% year-on-year.
Results by business segment are presented as follows.
Real Estate Sales
In the new home sales business, in addition to expanding our business by positioning the area between
southern Ibaraki Prefecture and Kashiwa in Chiba Prefecture as the key area for expanding our sales area, welaunched full-scale sales of Yotsuba no Mori housing lots (211 lots) in Tsukuba in Ibaraki Prefecture, which is
the largest housing lot development ever built by our group. We also made efforts to expand our sales byenhancing product inventory by launching sales of multiple medium- to large-scale housing lots in Kashiwa in
Chiba Prefecture. In an effort to facilitate brand penetration for our products among customer segments that exist
in a wide area within commuting distance of Tokyo, we started to run TV commercials in across the Kanto area
in June this year. Meanwhile, we reviewed the Group's sales structure in terms of areas where we aim to achievesynergetic effects as a wide marketing area and other areas where we prepare limited areas for thoroughdevelopment. As a result, we improved the efficiency of our business by reorganizing two branches, including
the transfer of Ibaraki Grandy House Koga Branch to our Kennan branch in April this year. In terms of products,
we continue to differentiate our products from those of our competitors by creating distinctive housing lots withconcepts, such as a high level of creativity, energy conservation, security and crime prevention for each housing
lot, as well as creating added value with our strength in building comfortable urban environments.
Through these initiatives, lot orders for new home sales during the quarter under review recovered from thelevel of the previous quarter, which suffered a slump, to the average level of the previous fiscal year. However,
lot sales resulted in 306 lots, a decrease in comparison with the figure for the same period of the previous year (adecrease by 27 lots year-on-year), in which the environment remained favorable owing to the low interest rates
on housing loans following the introduction of negative rates, due partly to the impact of a decrease in thebacklog of orders at the beginning of the year.
In existing home sales, we enhanced product inventory and expanded sales coverage to include theMetropolitan area (Tokyo, Saitama, Chiba and Kanagawa) for the expansion of our business. Home orders―2―

exceeded the quarterly average of the previous year due partly to our efforts in reinforcing the procurement ofhomes with a new goal of 70 completed homes at any time and strengthening the sales of existing condominiums
in the Metropolitan area. However, existing home sales for the consolidated first quarter came to be 30, down 9
from a year earlier, due partly to many projects with delivery delayed to the next quarter.
As a result of these initiatives, sales in the real estate sales segment decreased 8.6% year-on-year to ¥9,401
million. Segment profit declined to ¥468 million, down 40.2% from the same period of the previous fiscal year.
Construction Material Sales
In the construction material sales segment, new housing starts for wooden houses continued to exceed yearon-year for an extended period, with demand for construction materials continuing to grow steadily. Meanwhile,material wood prices began rising or remained high. Under such circumstances, the Grandy House Group madeefforts, such as boosting sales of construction materials and building materials other than pre-cut materials,
switching sales to our best customers in terms of earnings, and increasing orders in the non-residential buildings
segments. However, we suffered low earnings during the quarter under review, despite an increase in sales ofpre-cut materials in the non-residential buildings segments, due to a decrease in sales of housing equipment
partly as a result of the increased pre-cut material sales in the segments as well as increased costs as a result of
rising material prices.
As a result of these factors, sales in the construction materials sales segment decreased 2.8% year-on-year to¥727 million. Segment profit totaled ¥43 million, down 10.6% from a year earlier.
Real Estate Leasing
In the real estate leasing segment, the vacancy rate of office buildings continued to decline in and around
Utsunomiya, Tochigi Prefecture, which is our main market. In the parking lot market, competition remained
intense between parking lots in the vicinity. In this context, while we made efforts to improve the operation rateof existing assets and reduce management costs, the occupancy rate of leasing buildings improved during thequarter under review and we decided to rent out the three apartments that we acquired in connection with ourpurchase of land for housing development for the time being. In terms of expenses, our management costs
decreased significantly from the same period of the previous year when we recorded a cost of large-scalerenovation.
As a result of these factors, sales in the real estate leasing segment totaled ¥66 million, up 3.6% from a year
earlier. Segment profit totaled ¥45 million, up 54.6% year-on-year.
(2) Explanation regarding Financial Position
Total consolidated assets as of the end of the first consolidated quarter was ¥47,170 million, up ¥1,487
million from the previous consolidated fiscal year. This was mainly due to the increase in current assets throughthe acquisition of property for sale as we endeavored to boost and expand real estate business.
Total liabilities grew ¥1,528 million compared with the previous consolidated fiscal year to ¥29,089 million.
This is mainly due to the acquisition of properties for sale through funding via short-term loans.
Total net assets stood at ¥18,080 million as of June 30, 2017, down ¥41 million compared with the end of theprevious fiscal year. After accounting for the acquisition of net income attributable to owners of the parent
company, this increase was largely due to the payment of dividends.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There is no change to financial forecasts announced on May 8, 2017.

―3―

2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)FY2017(As of March 31, 2017)

First Quarter of FY2018(As of June 30, 2017)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Securities

8,475,518

8,407,566

589,066

598,850

499,982499,988

14,054,910

16,214,290

2,368

5,211

Real estate for sale in process

11,021,975

10,160,149

Merchandise and finished goods

220,154247,398

Real estate for sale
Costs on uncompleted construction contracts

Raw materials and supplies

147,599

137,589

Deferred tax assets

117,152

107,810

Other

456,190679,362

Allowance for doubtful accounts(4,316)(4,263)35,580,603

37,053,954

3,434,934

3,400,992

Machinery, equipment and vehicles, net

13,602

11,110Tools, furniture and fixtures, net

66,32480,6485,376,457

5,433,633

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

Land
Leased assets, net
Total property, plant and equipment
Intangible assets

102,661

90,201

8,993,981

9,016,586

64,14060,300448,642434,565

Investments and other assets
Investment securities
Long-term loans receivable

16,614

16,335

Deferred tax assets

240,664

254,713Other

357,141

351,741

Allowance for doubtful accounts(18,843)(17,948)

Total investments and other assets

1,044,218

1,039,408

10,102,340

10,116,295

45,682,944

47,170,249

Total non-current assets
Total assets―4―

(Thousands of Yen)FY2017(As of March 31, 2017)

First Quarter of FY2018(As of June 30, 2017)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,231,631

3,202,581

Short-term loans payable

20,225,700

21,815,200

Current portion of long-term loans payable

495,152

491,493

Current portion of bonds

21,00021,000

Lease obligations

38,63232,369

Income taxes payable

410,406

136,446

Provision for warranties for completed construction

57,22356,389Other635,983

997,161

25,115,729

26,752,641

87,00076,500Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable

1,587,719

1,463,593

Lease obligations

70,305

63,124

Provision for directors' retirement benefits

132,954

141,229

Net defined benefit liability

508,917533,064

Asset retirement obligations

4,249

4,261

Other
Total non-current liabilities
Total liabilities

54,28055,5192,445,425

2,337,292

27,561,155

29,089,933

2,077,500

2,077,500

Net assets
Shareholders' equity
Capital stock
Capital surplus

2,205,165

2,205,165

Retained earnings

13,982,262

13,950,177

Treasury shares
Total shareholders' equity(351,831)(351,831)

17,913,096

17,881,011

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

8,692

(695)

Total accumulated other comprehensive income

8,692

(695)

200,000

200,000

18,121,788

18,080,316

45,682,944

47,170,249

Subscription rights to shares
Total net assets
Total liabilities and net assets―5―(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of Yen)
Three months ended June30, 2016(From April 1, 2016 to June30, 2016)

Three months ended June30, 2017(From April 1, 2017 to June30, 2017)

Net sales

11,101,904

10,195,571

Cost of sales

9,099,539

8,400,824

Gross profit

2,002,364

1,794,746

Selling, general and administrative expenses

1,175,246

1,268,307

827,118

526,439

Operating income
Non-operating income
Interest income

331

323

Dividends income

2,454

3,453

Operations consignment fee

58,94059,487

Office work fee

39,91135,044

Other

7,563

22,586109,202120,895

Interest expenses

75,34385,270Commission for syndicate loan

1,125

2,738

–

4,531

76,46892,540859,852

554,794

4,660

5,309

Total non-operating income
Non-operating expenses

Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on cancellation of lease contracts

45–

Total extraordinary loss

4,705

5,309

Net income before income taxes

855,146

549,484

Income taxes–current

281,057

179,287

Income taxes–deferred

16,386(594)

Total income taxes

297,443

178,692

Net income

557,702370,792––

557,702370,792

Net income attributable to non-controlling interests
Net income attributable to owners of the parent company―6―

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of Yen)
Three months ended June30, 2016(From April 1, 2016 to June30, 2016)
Net income

Three months ended June30, 2017(From April 1, 2017 to June30, 2017)

557,702370,792

Valuation difference on available-for-sale securities

1,738(9,387)

Total other comprehensive income

1,738(9,387)559,441

361,404

559,441

361,404––

Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
company
Comprehensive income attributable to non-controllinginterests―7―

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in the Amount of Shareholders' Equity)
Not applicable.
(Segment and Other Information)
Segment Information
I. The three months ended June 30, 2016 (April 1, 2016 to June 30, 2016)
1. Information relating to the amounts of net sales, profit and loss by reportable segment
Reportable Segment

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

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

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

10,289,570

748,240

64,094

11,101,904—

11,101,904—

867,425

20,639888,065(888,065)—

10,289,570
783,941

1,615,666
48,096

84,73329,398

11,989,970
861,436(888,065)(1,584)

11,101,904
859,852

Total

Notes: 1 Adjustments of segment profit (−¥1,584 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 three months ended June 30, 2017 (April 1, 2017 to June 30, 2017)
1. Information relating to the amounts of net sales, profit and loss by reportable segment
Reportable Segment

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

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

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

9,401,532

727,629

66,40910,195,571—

10,195,571—

835,807

19,870855,677(855,677)—

9,401,532
468,772

1,563,436
43,002

86,27945,442

11,051,249
557,217(855,677)(2,422)

10,195,571
554,794

Total

Notes: 1 Adjustments of segment profit (−¥2,422 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.

―8―