March 7, 2018
Notice on Provision for Losses and Extraordinary Losses
from Business Structural Reforms,and Revised Forecast of Financial Results for Fiscal Year 2018.
Kawasaki Kisen Kaisha, Ltd. (“K” LINE) announces today to carry out business structuralreforms, mainly for profitability improvement and reduction of fleets being effected for theexposure to risks from market conditions, for upcoming financial results ending March 2019, byconsidering the largely changeable business environment. As to the cost of the business structuralreforms, “K” Line estimates approximately 65 billion yen followed with provision for loss related tocontainerships chartering to OCEAN NETWORK EXPRESS PTE. LTD. (“ONE”), the Company’s
equity-method affiliate, as well as chartering cancellation of containerships and dry bulkers. With
this implementation of the business structural reforms and changes of other extraordinary incomeor losses, “K” LINE announces that the forecast of consolidated financial results for fiscal year
ending March 2019 has been revised as set forth below.
1) Provision for Losses (Operating Expenses) and Chartering Cancellation (Extraordinary Losses)
ONE already settled the teething problems, which had occurred immediately after thecommencement of the services, and hereafter has been steadily under the improvement ofliftings and space utilization; however, the forecast of consolidated financial results for fiscal year
ending March 2019 is estimated to record loss with regret. Under such situation, “K” LINE
considered the business structural reforms for the purpose to improve our own fundamental
profitability through next fiscal year onwards and, as a result, “K” LINE determined to record theprovision for losses of approximately 15 billion yen, as rationally estimable amount, regarding loss
related to containerships chartering as well as to carry out cancelling chartering contracts forsome of uneconomical containerships and small and medium sized dry bulkers to reduce theexposure to risks from market fluctuation. “K” LINE estimates about 50 billion yen as
extraordinary losses with respect to these chartering cancellations. On top of that, it is expectedthat some of extraordinary profit, originally scheduled to be recorded in current period, is to beaccounted in next period due to the change of the timing implementation; thus, “K” LINE hasrevised the forecast of consolidated financial results ending March 2019.

12) Revision of Consolidated Financial Results for the Full Year
(April 1, 2018 – March 31, 2019)
Full YearNet income
OperatingOperating
Ordinary
attributablerevenues
incomeincometo owners of(million yen) (million yen) (million yen)
parent(million yen)

Net income
per share(yen)Forecast announced previously on January 31, 2018 (A)840,000(5,000)(28,000)(20,000)△ 214.43

Revised forecast (B)840,000(21,000)(46,000)(100,000) △ 1,072.13

Change (B – A)-(16,000)(18,000)(80,000)△ 857.70

Change (%)-----

Reference: Consolidated results for prior fiscal year
(fiscal year ended March 31, 2018)

1,162,025

7,219

1,962

10,384111.133) Reason for the Revision
As listed in previous clause, “K” LINE has revised the forecast of consolidated financial results
ending March 2019 because of provision for losses regarding chartering in operating loss,
reflection of impact by dry bulker’s weaken market conditions, extraordinary losses related tocancellation of chartering contracts, as well as the change of the timing implementation forextraordinary profit by assets’ sale such as fleets to subsequent period, which results in expansionof net loss attributable to owners of parent.
Kawasaki Kisen Kaisha, Ltd. Web Page URL:

https://www.kline.co.jp/en/index.html

For further information, please contact:
Takenori IGARASHI
General Manager, Corporate Planning GroupTel : +81-3-3595-5594
Kawasaki Kisen Kaisha, Ltd. (“K” LINE)

Note: The forecasts of financial results set forth in this document were calculated based on
available information at the time of announcement. Actual results may differ from the forecast
because of various factors such as future developments in the business environment.

2