Notice of Property Transfer

Tokyo, October 29, 2021 – Mitsubishi Heavy Industries, Ltd. (MHI) has taken a decision to transfer property held by the Company as described below.

    1. Reasons for the transfer

    MHI decided to transfer the designated property held by the Company in order to make effective use of its management resources and to strengthen its financial position.

    2. Property for transfer

    Description and Location Gain on Sale* Current Status
    Land: 24,230.31m2
    710, Ichinotsubo, Nakahara-ku,
    Kawasaki-shi, Kanagawa Pref.
    Approx. ¥19 billion The land is currently rented out for use as a model home exhibition site, etc.

    * At the request of the transferee, MHI refrains from disclosing the property’s transfer price and book value. However, the transfer will be carried out at an appropriate price reflecting the market price, after competitive bidding. The gain on sale indicated here is a rough estimate calculated by subtracting the book value of the property and miscellaneous fees from the transfer price.

    3. Profile of the transferee

    At the request of the transferee, MHI is not disclosing the name of the transferee. However, no capital, personnel, or business relationships exist between MHI and the transferee, and the transferee is not a MHI affiliate.

    4. Transfer schedule

    Contract conclusion October 29, 2021
    Transfer date (subject to change) December 22, 2021

    5. Impact from the transfer

    As a result of the foregoing property transfer, MHI expects to record approximately ¥19 billion as gain on sales of non-current assets in its consolidated statement for the fiscal year ending March 31, 2022. A description of the impact from this transfer is incorporated into the notice concerning revisions to the Company’s earnings forecasts being released separately today (October 29, 2021).