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Notice of Property Transfer

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Mitsubishi Heavy Industries, Ltd.

Tokyo, November 28, 2019 - Mitsubishi Heavy Industries, Ltd. (MHI), at a meeting of its Board of Directors held today, decided to transfer property held by the Company, as follows.

    1. Reason for the transfer

    MHI decided to transfer the following property held by the Company to effectively utilize management resources, and strengthen its financial condition.

    2. Property for transfer

    Description and Location Gain on Sale Current Status
    Land: 173,797.81m2
    Takamichi-1, Iwatsuka-cho, Nakamura-ku, Nagoya
    Approx. ¥30 billion The land is currently in use as the Company's Iwatsuka Plant.

    * While MHI is not disclosing the transfer price and book value of the subject property at the request of the transferee, the transfer price is an appropriate price reflecting the market price through competitive bidding. The gain on sale indicated here is a rough estimate calculated by subtracting the book value of the subject property and miscellaneous fees from the transfer price.

    * MHI plans to set up a trust for the subject property, and transfer the trust beneficiary right based on the trust.

    3. Overview of the transferee

    At the request of the transferee, MHI is not disclosing the name of the transferee. Of note, there are no capital, personnel, or business relationships between MHI and the transferee. The transferee is not an MHI affiliate.

    4. Transfer schedule

    Resolution of Board of Directors November 28, 2019
    Contract conclusion (planned) November 29, 2019
    Transfer date* (planned) September 30, 2020

    * The transfer date is the date of the transfer of the trust beneficiary right for the subject property.

    5. Future forecast

    As a result of the subject property transfer, MHI expects to record approximately ¥30 billion as gain on sales of non-current assets in its consolidated statement for the fiscal year ending March 31, 2021.