NEWSLETTER

May 11, 2020
Notice on Differences between Consolidated Financial Forecasts and Results
for the Full Year ending March 31, 2020, Record of Provision for Loss (Operating Expenses),and Dividend from Retained Earnings (No Year-End Dividend)
Kawasaki Kisen Kaisha, Ltd. (hereinafter “K” LINE) announces that differences arose
between the consolidated financial results for the full year ending March 31, 2020
announced today and the previous forecasts announced on January 31, 2020, record ofprovision for loss related to chartering, and payment of no dividend for the current fiscalyear based on March 31, 2020 as record date by conducting the resolution for the financial
results ending on March 31, 2020 at the Board of Directors on May 11, 2020.
1. Differences from Financial Forecasts
1) Content of the Differences
Differences from Consolidated Financial Forecasts for the Full Year FY2019 (April 1,2019 –March 31, 2020)
Operatingrevenue(million yen)

Operatingincome(loss)(million yen)

Ordinaryincome(loss)(million yen)

Profit(loss)
attributable toowners of theparent(million yen)

Profit(loss)
attributable toowners of theparent per share(yen)Previous forecast announced
on January 31st 2020 (A)740,000

5,000

5,000

11,000117.93Results (B)735,284

6,840

7,407

5,269

56.50

Change (B - A)

△ 4,716

1,840

2,407

△ 5,731

Change (%)△ 0.6%

36.8%

48.1%

△ 52.1%

836,731△ 24,736△ 48,933△ 111,188

Reference: Consolidated results forprior fiscal year ended March 31st, 2019

△ 1,192.082) Reason for the Differences
The operating income and ordinary income far exceeded the forecasts previously
announced, mainly because of the effect of disposal of uneconomical fleets in containerships
and small and medium sized dry bulkers by structural reforms carried out in the end of thelast fiscal year, the success by the realignment of trades with the robust cargo movements inthe car carrier business, as well as a profit recorded as initially forecasted by Ocean Network
Express Pte. Ltd. (hereinafter ONE) which business operations became stable. However, theprofit attributable to owners of the parent for the full year ending March 31, 2020 recorded

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5,269 Million Yen, being far below from the previous forecasts as 11,000 Million Yen,announced on January 31, 2020, due to the record of the extraordinary loss on evaluation of
investment securities in the fourth quarter of the current fiscal year, ending March 31, 2020.
Also, the provision for loss related to containerships chartering is not the factor of thefinancial results’ differences as it was included into the financial forecasts initiallyannounced.
2. Record of Provision for Loss related to Chartering (Operating Expenses)
1) Content of the Decision“K” Line is chartering containerships to ONE and it has been decided to record
approximately 16,500 Million Yen as provision for loss as rationally estimable amount at thismoment, which amount is included into the consolidated financial results ending March 31,
2020 announced today.
3. Decision of Dividend from Retained Earnings (Year-End Dividend)1) Content of the Decision

Record date
Dividend per share
Total amount of dividends
Effective date
Source of funds for dividends

Amount determined

Most recent dividend
forecast (announcedon January 31, 2020)

Actual dividend in theprevious fiscal year

March 31, 2020
0.00 yen―――

March 31, 2020
Undetermined―――

March 31, 20190.00 yen―――2) Reason
The consolidated ordinary income was far exceeded from the initial forecasts, at today’s
announcement for FY2019. The Company’s financial condition was significantly improved
year-on-year and the profit attributable to owners of the parent for the full year ending
March 31, 2020 recorded 5,269 Million Yen, even though it went down from the previous
forecasts because the extraordinary loss on evaluation of investment securities was recodedat the full year ending March 31, 2020.
“K” LINE’s important management task is to maximize returns to our shareholders byimplementing stable dividend. However, the Company’s basic dividend policy is tocomprehensively take all into consideration such as current and future financial conditions,necessary internal reserves to fund investment for sustainable growth, and strength ofcapital base, and to tackle the improvement of mid termed Shareholders’ interests. Based on
this policy, it is with sincere regret that the Company announces it has decided to pay nodividend for the current fiscal year ending March 31, 2020. With sincerest apologies to allshareholders, the Company further strives to improve the financial positions as well as tostrengthen the capital base with a view to early resuming dividend payment.

KAWASAKI KISEN KAISHA, LTD.
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For further information, please contact:
Goro Kitamura

Masaya Futakuchi

General Manager, Corporate Planning Group General Manager, IR & PR Group
Tel: +81-3-3595-5594

Tel: +81-3-3595-5189

Kawasaki Kisen Kaisha, Ltd. (“K” LINE)

Kawasaki Kisen Kaisha, Ltd. (“K” LINE)“K” Line’s website URL:

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

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
depending on various factors such as future developments in the business environment.

KAWASAKI KISEN KAISHA, LTD.
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IR & PR Group