| Company name: | Fuji Heavy Industries Ltd. |
| Representative: | Mr. Yasuyuki Yoshinaga, President & CEO |
| Code number: | 7270 (First Section of Tokyo Stock Exchange) |
| Contact for inquiries: | Mr. Kazunori Yamafuji, General Manager of Administration Department Phone: (0)3-3347-2005 |
Notice regarding Recognition of Profit on Sale of Investment Securities
(Extraordinary Income) and Revision of Performance Projection
for the Fiscal Year 2014 (from April 1, 2013 to March 31, 2014)
Fuji Heavy Industries Ltd. (the "Company") announces that, in connection with the sale of the Company's shares in Polaris Industries Inc. (hereinafter "Polaris"), the Company earned a profit on the sale of investment securities as set forth below.
The Company further announces that, as a result of this sale of investment securities, the Company will revise its Projection of Consolidated Results for the Fiscal Year ending March 31, 2014 released at the timing of consolidated financial results announcement on October 31, 2013 as set forth below.
1. Information Regarding Recognition of Profit on Sale of Investment Securities (Extraordinary Income)
(1) Contents of Sale of Investment Securities
| 1) Number of Shares Sold: | 3,960,000 shares | |
| 2) Sale Price: | ¥49,394 million (US$ 497million US$ 1 = ¥99) | |
| 3) Method of Sale: | Negotiated transaction with Polaris | |
| 4) Date of Sale: | November 12, 2013 (US time) | |
| 5) Amount of Profit on Sale of Investment Securities: | ¥47,118 million |
(2) Purpose of Sale of Investment Securities
To streamline the Company's assets in possession
(3) Future Prospects
In connection with the sale of the investment securities, the Company will recognize the ¥47,118 million of profit on the sale of investment securities as extraordinary income in the Company's consolidated financial results for the third quarter of the fiscal year ending March 31, 2014.
2. Revision of Performance Projection
(1) Revision of figures for the Company's Projection of Consolidated Results for Fiscal Year 2014 (April 1, 2013 to March 31, 2014)
| Net sales | Operating income |
Ordinary income |
Net income | Net income per share |
|
|---|---|---|---|---|---|
| Previous projection (A) | ¥ million 2,300,000 |
¥ million 278,000 |
¥ million 272,000 |
¥ million 178,000 |
Yen 228.08 |
| Revised projection (B) | 2,300,000 | 278,000 | 272,000 | 207,000 | 265.24 |
| Change in amount (B-A) | 0 | 0 | 0 | 29,000 | - |
| Percentage change (%) | 0.0 | 0.0 | 0.0 | 16.3 | - |
| (Supplemental information) Actual results of the fiscal 2013 (ended March 31, 2013) |
1,912,968 | 120,411 | 100,609 | 119,588 | 153.23 |
(2) Reason for Revision
As stated in Section 1 above, this revision is a result of the recognition of profits from the sale of investment securities (extraordinary income). The exchange rates used for projections of fiscal year consolidated business results remain the same as in the previous announcement, as follows:
- full-year: ¥97/US$, ¥127/EUR
- from the third quarter onward: ¥95/US$, ¥125/EUR
| Note: | Above mentioned projections are based on certain assumptions and our management's judgment in light of currently available information, therefore actual results may differ from these projections. |