Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

May 8, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
(Under Japanese GAAP) (Unaudited)
Company name:

Kawasaki Kisen Kaisha, Ltd.

Listing:

Prime Market of Tokyo Stock Exchanges

Securities code:

9107

URL:

http://www.kline.co.jp/en/

Representative:

Yukikazu Myochin, Representative Director, President & CEO

Inquiries:

Goro Kitamura, General Manager, Corporate Sustainability,
Environment Management, IR and Communication Group

Telephone:+81-3-3595-5189

Scheduled date of annual general meeting of shareholders:June 23, 2023

Scheduled date to commence dividend payments:

June 26, 2023

Scheduled date to file annual securities report:

June 23, 2023

Preparation of supplementary material on financial results:

Yes

Holding of financial results briefing:

Yes (for Analysts)(Amounts rounded down to the nearest million yen)
1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31,
2023)(Percentages indicate year-on-year changes.)(1) Consolidated operating results
Operating income(loss)

Operating revenues

Profit (loss)
attributable to owners

Ordinary income(loss)of the parent

Million yen%

Million yen%

Million yen%

Million yen%

Year ended
March 31, 2023

942,606

24.5

78,857346.4

690,8395.1

694,904

8.2

Year ended
March 31, 2022

756,983

21.0

17,663-

657,504

634.7

642,424

491.0

Note:

Comprehensive income for the fiscal year ended March 31, 2023:¥794,036 million[19.0%]For the fiscal year ended March 31, 2022:¥667,264 million[456.3%]

Profit (loss) per
share

Year ended
March 31, 2023
Year ended
March 31, 2022
Reference:

Profit per share

Profit (loss) per
share-fully

Ratio of ordinary
income (loss) toratio inshareholders’dilutedtotal assets

equityRatio ofoperating income(loss) to operating
revenues

Yen

Yen

%

%

%

2,571.02

-

57.9

38.1

8.4

2,295.85

-

116.5

51.6

2.3

Equity in earnings of unconsolidated subsidiaries and affiliates:
Year ended March 31, 2023:
Year ended March 31, 2022:¥627,759 million¥640,992 million

1*The Company split its common share on the basis of one (1) share into three (3) shares effective October 1, 2022.
Accordingly, profit (loss) per share is calculated on the assumption that the stock split was conducted at the
beginning of the previous fiscal year ended March 31, 2022.
(2) Consolidated financial position
Total assets

Shareholders’ equity
ratio

Net assets

Net assets per share

Million yen

Million yen%

Yen

Year ended
March 31, 2023

2,052,616

1,546,679

73.8

6,128.41

Year ended
March 31, 2022

1,574,960

984,882

56.2

3,161.45

Shareholders’ equity:Year ended March 31, 2023:¥1,515,399 million

Reference:Year ended March 31, 2022:¥884,634 million*The Company split its common share on the basis of one (1) share into three (3) shares effective October 1, 2022.
Accordingly, net assets per share is calculated on the assumption that the stock split was conducted at the
beginning of the previous fiscal year ended March 31, 2022.
(3) Consolidated cash flows
Cash flows from

Cash flows from

Cash flows fromoperating activities

investing activities

financing activities

Year ended
March 31, 2023
Year ended
March 31, 2022

2.

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

456,049(46,745)(300,790)

346,831226,460(5,848)(116,001)

244,316

Dividends
Annual dividends per share

Year ended
March 31, 2022
Year ended
March 31, 2023

Firstquarter-

Secondquarter-

Third
quarter-

end

end

end

Total

Fiscalyear-end

dividends(Total)Total

Ratio of
Payout ratio(Consolidated)

dividends to
net assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

0.00

-

600.00600.0056,244

8.7

10.1

-

300.00-300.00-74,593

15.6

8.6

-

100.00-100.00200.00Year ended
March 31, 2024
(Forecast)

41.2

1. The Company implemented a 3-for-1 stock split of common shares on October 1, 2022.
2. The year-end dividend for the fiscal year ending March 2022 which has a dividend record date of March 31,
2022, and the interim dividend for the fiscal year ending March 2023 which has a dividend record date of
September 30, 2022, were paid based on the shares before the stock split.
3. The year-end dividend for the fiscal year ending March 2023 which has a dividend record date of March 31,
2023, the interim dividend for the fiscal year ending March 2024 which has a dividend record date of
September 30, 2023, and the year-end dividend for the fiscal year ending March 2024 which has a dividend
record date of March 31, 2024, will be paid based on the shares following the stock split.
2

4. The full-year dividend for the fiscal year ending March 2023 per share is not presented as simple comparisons
are not possible due to the implementation of the stock split, however, the full-year dividend per share based on
the pre-stock split is 1,200.00 yen.
3.

Consolidated Financial Results Forecast for the Year Ending March 31, 2024 (April 1, 2023 toMarch 31, 2024)(Percentages indicate year-on-year changes.)
Profit (loss)
attributable toOperating revenues

Operating income(loss)

Ordinary income(loss)

Million yen%

Million yen%

Million yen%

Million yen%

Yen

434,000(10.1)

43,000(18.9)

66,000(88.4)

62,000(89.0)

250.73870,000(7.7)

85,0007.8

130,000(81.2)

120,000(82.7)

485.29owners of the parent

Profit (loss)
per share

Cumulative
second quarter
endingSeptember 30,
2023
Year ending
March 31,2024

4. Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation):
Yes
Newly included:
None
Excluded:1 (Corporate name: K LINE OFFSHORE AS)(2) Changes in accounting policies, changes in accounting estimates, and restatement(i)
Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)
(i)

(ii)

(iii)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

250,712,389 shares

As of March 31, 2022

281,814,687 shares

Number of treasury shares at the end of the period
As of March 31, 2023

3,438,017 shares

As of March 31, 2022

1,995,630 shares

Average number of shares outstanding during the period
Year ended March 31, 2023

270,283,923 sharesYear ended March 31, 2022

279,820,339 shares*The Company split its common share on the basis of one (1) share into three (3) shares effective October 1, 2022.
Accordingly, total number of issued shares at the end of the period, number of treasury shares at the end of theperiod and average number of shares outstanding during the period are calculated on the assumption that thestock split was conducted at the beginning of the previous fiscal year ended March 31, 2022.

3

[Reference] Overview of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March
31, 2023)(Percentages indicate year-on-year changes.)(1) Non-consolidated operating results
Operating income(loss)

Operating revenues

Ordinary income(loss)

Profit (loss)

Million yen%

Million yen%

Million yen%

Million yen%

Year ended
March 31, 2023

726,266

31.7

46,199-396,58059.6

407,706

80.4

Year ended
March 31, 2022

551,372

38.1(4,964)-248,455-

225,959-

Profit (loss) per share

Year ended
March 31, 2023
Year ended

Profit (loss) per sharefully diluted

Yen

Yen

1,508.09-

807.31-March 31, 2022

*The Company split its common share on the basis of one (1) share into three (3) shares effective October 1, 2022.
Accordingly, profit (loss) per share is calculated on the assumption that the stock split was conducted at the
beginning of the previous fiscal year ended March 31, 2022.
(2) Non-consolidated financial position
Total assets

Net assets

Shareholders’ equity

Net assets per shareratio

Million yen

Million yen%

Yen

Year ended
March 31, 2023

877,521515,36558.7

2,083.76

Year ended
March 31, 2022

724,090272,84337.7

974.82

Year ended March 31, 2023:
Year ended March 31, 2022:¥515,365 million¥272,843 million

Reference:

Shareholders’ equity:*The Company split its common share on the basis of one (1) share into three (3) shares effective October 1, 2022.
Accordingly, net assets per share is calculated on the assumption that the stock split was conducted at the
beginning of the previous fiscal year ended March 31, 2022.
*Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
*Assumption for the forecast of consolidated financial results for the year ending March 31, 2023
The forecast is based on currently available information that KLINE deems to be reasonable. Actual results may
differ from the forecast as a result of various factors.
Refer to “5. Qualitative Information and Financial Statement (1) Qualitative Information about the Consolidated
Operating Result 2) Prospect for Fiscal year 2023” for assumptions related to the forecast.

4

5. Qualitative Information and Financial Statement(1) Qualitative Information about the Consolidated Operating Result
1)Summary of Consolidated Operating Results for FY2022(Billion yen)
Fiscal Year 2021

Fiscal Year 2022

(Ended March 31, 2022)(Ended March 31, 2023)

Operating revenues

756.9

942.6

185.6

24.5%

Operating income (loss)

17.6

78.8

61.1

346.4%

Ordinary income (loss)

657.5

690.8

33.3

5.1%

Profit (loss) attributable to owners of the parent

642.4

694.9

52.4

8.2%

112.06135.07

23.01

20.5%

551

769

218

39.6%

Change% Change

Exchange Rate (¥/US$)(12-month average)
Fuel oil price (US$/MT)(12-month average)

Due to significant business performance improvement of OCEAN NETWORK EXPRESS PTE. LTD. (hereinafterreferred to as "ONE"), the Company recorded 627.7 billion yen of equity in earnings of unconsolidated subsidiaries
and affiliates for the fiscal year 2022. Within the recorded equity in earnings of unconsolidated subsidiaries andaffiliates, "ONE" accounted for 620.6 billion yen for the fiscal year 2022, and 53.6 billion yen in the fourth quarter
alone.
Performance per segment was as follows.
(Billion yen)
Fiscal Year 2021

Fiscal Year 2022

(Ended March 31, 2022)(Ended March 31, 2023)

Operating revenues

276.4

312.2

35.7

12.9%

Segment profit (loss)

23.7

21.6

(2.1)

(9.0%)

Energy resource

Operating revenues

89.7

100.2

10.4

11.7%

transport

Segment profit (loss)

4.7

9.8

5.0

106.6%

Operating revenues

380.1

519.7

139.5

36.7%

Segment profit (loss)

640.8

670.0

29.2

4.6%

Operating revenues

10.5

10.3

(0.2)

(2.5%)

Segment profit (loss)

(0.1)

0.8

0.9

－

Segment profit (loss)(11.7)(11.4)

0.2－

Operating revenues

756.9

942.6

185.6

24.5%

Segment profit (loss)

657.5

690.8

33.3

5.1%

Change% Change

Dry bulk

Product logistics

Other

Adjustments andeliminations

Total

5

(i)

Dry Bulk Segment

Dry Bulk BusinessIn the Cape-size sector, at the beginning of the year, as the vessel supply-demand balance tightened due to port
congestion associated with COVID-19 control measures, market rates stayed high. From the middle of the year
through the end of the year, market rates weakened due to the easing of the impact of these factors and the decreasein demand for China-bound transportation caused by the slowdown of domestic demand resulting from China’s zeroCOVID policy. Towards the end of the year, market rates increased due to the expectations for the recovery of demand
for steel through the economic stimulus package implemented after the end of that policy.
In the medium and small vessel sector, market rates declined early in the year because of the effects of the easingof port congestions in China as well as decline in demand for the transportation of coal to India and of steel products
to Europe. The market rate increased and declined due to increase in demand for the transportation of grain anddecline in demand for the transportation of coal to China from the middle of the year through the end of the year.
However, the market stayed generally firm as well as the Cape-size sector after January this year.
Under these circumstances, the Group strived to manage the market exposures appropriately and reduce operation
costs and improve vessel operation efficiency.
As a result, the overall Dry Bulk Segment recorded a year-on-year increase in revenue but decrease in profit.
(ii)

Energy Resource Transport Segment

LNG Carrier, Electricity Business, Tanker Carrier and Offshore Business
Concerning LNG carriers, thermal coal carriers, large crude oil tankers (VLCCs), LPG carriers, drillship and FPSO
(Floating Production, Storage and Offloading system), the business stayed firm for mid- and long-term charter
contracts and contributed to secure stable profit.
As a result, the overall Energy Resource Transport Segment recorded a year-on-year increase both in revenue andprofit.
(iii)

Product Logistics Segment

Car Carrier BusinessIn the global car sales market, production and shipments in some regions were affected by supply shortages ofsemiconductors and auto parts and the Russia-Ukraine situation, but the recovery from the impact of the COVID-19
continued. Meanwhile, the Group continued efforts to restore freight rates and improve operational efficiency.
Logistics BusinessIn the domestic logistics and port business, the domestic container handling volume decreased year-on-year due tothe decrease in cargo for services between the west coast of North America and Japan. In the towage business andwarehousing business, work volume stayed firm. As for the international logistics sector, the downtrend in ocean and6air cargo transportation demand continued in the forwarding business. In the finished vehicle transportation business,both land transportation volume and storage volume increased year-on-year along with the increase in demand fortransportation of vehicles bound for Australia.
Short Sea and Coastal BusinessIn the short sea business, although coal transportation declined year-on-year due to the Russia-Ukraine situation,
the overall market remained firm because of robust demand for the transportation of steel products and biomass fuels.
In the coastal business, while the cargo transportation volume remained at the same level as the same quarter of theprevious year, the recovery in the numbers of passenger cars and passengers transported continued as a result of thelifting of restrictions on activities associated with COVID-19.
Containership Business
The business performance of "ONE" stayed firm in the first half of the year due to high freight market. Although
short-term freight rates declined in the second half of the year due to restoration in shipping capacity supply anddecline in transportation demand as a result of normalization of supply chains, full-year results of "ONE" remained
strong as in the previous year.
As a result, the overall Product Logistics Segment recorded a year-on-year increase in both revenue and profit.
(iv)

Other

Other includes but not limited to the Group’s ship management service, travel agency service, and real estate andadministration service. The segment recorded a year-on-year decrease in revenue but returned to profitability.
2)Prospect for Fiscal year 2023
For the fiscal year ending March 31, 2024, the Group is projecting the performance as follows.
(Billion yen / Percentages indicate year-on-year changes.)
Operating revenues
Fiscal Year 2023
(End March 2024)

870.0(7.7%)

Operating income(loss)
85.0

7.8%

Ordinary income (loss)

130.0(81.2%)

Profit (loss) attributable toowners of the parent
120.0(82.7%)（Exchange Rate(¥/US$) : ¥125.29 / Fuel Oil Price(US$/MT) : US$679）
In the Dry Bulk Segment, despite uncertainties including concerns over inflation, high interests’ rates, financial
insecurity and recession mainly in Europe and the United States and the prolongation of the Russia-Ukraine situation,
the market is expected to stay firm due to the tightening of the vessel supply-demand balance against the backdropof the recovery of economic activities in China and limited building of new ships. The Group will watch out forchanges in transportation demand and trade patterns and prepare to promptly respond. At the same time, amid growing
need to deal with environmental problems, take advantage of its strength in high quality transportation, the Group7

will strive to secure stable profit by increasing vessel operation efficiency and reducing costs as well as increasing
mid- and long-term contracts.
In the Energy Resource Transport Segment, the Group will continue efforts to secure stable profit as it expects toensure smooth business operations, supported by mid- and long-term contracts, with respect to LNG carriers, thermal
coal carriers, large crude oil tankers (VLCCs), LPG carriers, drillship and FPSO (Floating Production, Storage andOffloading systems).
As for the Product Logistics Segment, regarding the car carrier business, while geopolitical risks and risks of global
economic stagnation will remain, the year-on-year recovery trends of production and shipment are expected tocontinue along with the recovery of supply of semiconductors and auto parts. The Group will continue to strive to
optimize our fleet and improve the efficiency of vessel operation and allocation. In the logistics business, regarding
the domestic logistics and port business, although the ocean container transportation for services between the west
coast of North America and Japan has recently declined, the handling volume at domestic terminals combined withshort sea services is expected to be the same as previous year. As for the international logistics sector, market rate
trends are uncertain in the forwarding business due to declining demand for ocean and air transportation. In thefinished vehicle transportation business, the handling volume is expected to increase due to the continued robust
demand for imported vehicles in Australia. In the Short Sea and Coastal Business, as market rates are expected tostay at a lower level than the previous year in the short sea business, the Group will strive to acquire stable cargothrough mid-and long-term contracts for transportation of biomass fuels. In the coastal business, while EC cargo will
decline in ferry transportation, demand for passenger transportation is expected to remain flat year-on-year. As forliner transportation, the Group will aim to improve the transportation volume by gaining demand for trailertransportation as measures for the modal shift to cope with Year 2024 Problem. In the containership business, freightrates are stabilizing as supply chains normalize. However, global economic uncertainties are expected to continue
due to global inflation and energy price hikes, rising interests’ rates mainly in the U.S., and geopolitical risks in
Europe and Asia. "ONE" will continue to closely monitor the economic environment and strive for steady business
operations while implementing flexible measures to adapt to fluctuations in supply and demand.
(2) Analysis of Financial Position
1) Assets, Liabilities and Net Assets
Consolidated assets at the end of March 2023 were ¥2,052.6 billion, an increase of ¥477.6 billion from the endof the previous fiscal year. Current assets increased by ¥103.8 billion from the end of the previous fiscal year, due
mainly to an increase in Marketable securities. Non-current assets increased by ¥373.8 billion, mainly as a resultof an increase in investment securities.
Consolidated liabilities decreased by ¥84.1 billion to ¥505.9 billion from the end of the previous fiscal year,
mainly as a result of a decrease in short-term loans and current portion of long-term loans.
Consolidated net assets were ¥1,546.6 billion, an increase of ¥561.7 billion compared to the end of the previous
fiscal year, mainly as a result of an increase in retained earnings.

82) Cash Flows
Total cash and cash equivalents at the end of fiscal year 2022 were ¥346.8 billion, an increase of ¥102.5 billion
over the end of the previous fiscal year. Details of each cash flow source are as follows:
Cash flows from operating activities were a net cash inflow of ¥456.0 billion (compared to a net cash inflow of¥226.4 billion in the previous fiscal year) due mainly to profit before income taxes.
Cash flows from investing activities resulted in a net cash outflow of ¥46.7 billion (compared to a net cash
outflow of ¥5.8 billion in the previous fiscal year) due mainly to purchase of vessels, property and equipment.
Cash flows from financing activities resulted in a net cash outflow of ¥300.7 billion (compared to a net cash
outflow of ¥116.0 billion in the previous fiscal year) due mainly to repayments of long-term loans, purchase oftreasury stock and cash dividends paid.
Reference: Changes in cash flow-related indicators

Equity ratio (%)

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Ended

Ended

Ended

Ended

Ended

March 2019

March 2020

March 2021

March 2022

March 2023

10.9

11.3

22.4

56.2

73.8

11.7

8.5

24.3

47.5

36.4

－

－

15.2

1.9

0.8

－

－

3.3

22.0

47.1

Equity ratio(based on market value)(%)
Ratio of debt to cash flow
(annual)Interest coverage ratio (x)*Equity ratio is the shareholders’ equity divided by total assets.
Equity ratio (based on market value) is market capitalization divided by total assets.
Ratio of debt to cash flow is interest-bearing liabilities divided by cash flow.
Interest coverage ratio is cash flow divided by interest expenses.
Notes
1. Indicators are calculated on the basis of consolidated figures.
2. Market capitalization is calculated based on the number of shares outstanding, not including treasury stock.
3. Cash flows above refer to cash flows from operating activities.
4. Interest-bearing liabilities are the total of all liabilities on the consolidated balance sheet on which interest is
paid. Interest paid shown in the consolidated statement of cash flows is used as interest expenses.
5. The ratio of debt to cash flow and the interest coverage ratio for the fiscal year ended March 2019 and March
2020 were omitted since the cash flows from operating activities were negative.

9

(3) Basic Dividend Policy and Dividend Payments for Fiscal Year 2022 and Following Fiscal Year
Based on our medium-term management plan, our basic policy is to always be aware of the optimal capital
structure, to make the investments necessary to increase corporate value and ensure financial soundness, and toactively return profits to shareholders, including share buybacks, in consideration of cash flow for the portion ofcapital exceeding the appropriate amount.
Based on this basic policy, for the fiscal year ended March 31, 2023, the Company resolved a year-end dividendof 300.00 yen per share based on post-stock split.
Although a simple comparison of annual dividends cannot be made due to the stock split, the annual dividend pershare based on the pre-stock split will be 1,200.00 yen, including the interim dividend of 300.00 yen per share basedon the pre-stock split.
Above will be implemented subject to the resolution at the Ordinary General Meeting of Shareholders scheduledin June 2023.
Taking the business performance and other factors into consideration, the Company plans to raise the basic
dividend per share to 120.00 yen based on the post-stock split for the remaining period of the medium-term
management plan, from the fiscal year ending March 31, 2024, to the fiscal year ending March 31, 2027.
Furthermore, the Company plans to pay an additional dividend of 80.00 yen per share based on post-stock split for
the fiscal year ending March 31, 2024.
As a result, for the fiscal year ending March 31, 2024, the Company plans payment of an annual dividend of
200.00 yen per share (including an interim dividend of 100.00 yen per share).
Furthermore, the Company plans to consider an additional 110 billion yen in shareholder return during theremaining period of the medium-term management plan, of which at least 50 billion yen will be paid in the fiscal
year ending March 31, 2024, apart from the additional dividend.
The Company plans to consider share buybacks in addition to dividends as an additional shareholder returnmeasure.
(Note)
Each share of common stock owned by shareholders on the recorded date of September 30, 2022 was split into 3
shares per share on October 1, 2022.
6. Basic Approach to Selection of Accounting Standards
To allow reliable year-on-year and company-to-company comparisons, the Group’s policy for the time being is toprepare its consolidated financial statements according to Japanese accounting standards.
With respect to application of IFRS, our policy is to respond appropriately based on consideration of various
domestic and overseas circumstances.

107. Consolidated Financial Statements(All financial information has been prepared in accordance with accounting principles generally accepted in Japan)

Consolidated Balance Sheet(Millions of yen)
As of

As of

March 31, 2022

March 31, 2023

ASSETS
Current assets :Cash and deposits
Accounts and notes receivable - trade and contract assets
Marketable securities
Raw materials and supplies
Deferred and prepaid expenses
Short-term loans receivable
Other current assets
Allowance for doubtful accounts
Total current assets

247,344
103,699
036,572
17,659
4,749
22,107(1,044)
431,089

247,429
107,522102,001
38,35622,0182,293
16,345(1,074)534,894

Non-current assets :(Vessels, property and equipment)
Vessels, net
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total vessels, property and equipment

339,821
9,817
2,904
15,7309,679
4,076
382,029

319,329
9,709
3,129
15,537
18,842
5,599
372,147

3,513
3,513

3,808
3,808

(Investments and other assets)
Investment securities
Long-term loans receivable
Asset for retirement benefits
Deferred tax assets
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets

691,809
23,0071,228
2,589
40,824(1,132)
758,326

1,070,227
24,5681,400
6,175
41,323(1,930)1,141,765

Total non-current assets

1,143,870

1,517,722

1,574,960

2,052,616(Intangible assets)
Other intangible assets
Total intangible assets

Total assets

11Consolidated Balance Sheet(Millions of yen)
As of

As of

March 31, 2022

March 31, 2023

LIABILITIESCurrent liabilities :Accounts and notes payable - trade
Short-term loans and current portion of long-term loans
Lease obligations
Accrued income taxes
Provision for loss related to the Anti-Monopoly Act
Provision for loss on liquidation of subsidiaries and affiliates
Provision for loss on chartering contracts
Provision for bonuses
Provision for directors' bonuses
Other current liabilities
Total current liabilities

62,75687,544
26,870
3,051
357
2,168
13,903
4,165
309
50,411
251,538

9,609
4,489
523
40,106
185,378

277,992
24,0479,129
1,174

267,313
20,320
4,044
1,174

167

83

307
13,392
6,147
6,178
338,538
590,077

1,192
14,8106,441
5,177
320,558
505,937

Shareholders' equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity

75,457
14,214
777,130(2,378)864,42475,457
29,102
1,302,769(6,550)1,400,779

Accumulated other comprehensive income :Net unrealized holding gain (loss) on investment securities
Deferred gain (loss) on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Retirement benefits liability adjustments
Total accumulated other comprehensive income

5,474
(893)
4,630
12,954(1,956)
20,209

6,482
2,100
4,682
103,353(2,000)114,619

Non-controlling interests

100,248

31,280Total net assets

984,882

1,546,679

Total liabilities and net assets

1,574,960

2,052,616

Non-current liabilities :Long-term loans, less current portion
Lease obligations
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Provision for directors' and audit and supervisory board
members' retirement benefits
Provision for directors' stock benefits
Provision for periodic dry docking of vessels
Liability for retirement benefits
Other non-current liabilities
Total non-current liabilities
Total liabilities

62,80350,691
13,367
2,095
1,692
-

NET ASSETS

12

Consolidated Statement of Operations(Millions of yen)
Year

Year

ended

ended

March 31, 2022

March 31, 2023

Marine transportation and other operating revenues

756,983

942,606

Marine transportation and other operating costs and expenses
Gross profit (loss)
Selling, general and administrative expenses
Operating income (loss)
Non-operating income :Interest income
Dividend income
Equity in earnings of unconsolidated subsidiaries and affiliates
Foreign exchange gains
Other non-operating income
Total non-operating income
Non-operating expenses :Interest expenses
Foreign exchange losses
Loss on valuation of derivatives
Other non-operating expenses
Total non-operating expenses
Ordinary income (loss)
Extraordinary income :Gain on sales of non-current assets
Other extraordinary income
Total extraordinary income
Extraordinary losses :Impairment losses
Loss on cancellation of chartered vessels
Provision for loss on liquidation of subsidiaries and affiliates
Loss on change in equity
Provision for loss related to the Anti-Monopoly Act
Other extraordinary losses
Total extraordinary losses
Profit (loss) before income taxes
Income taxes :Current
Deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of the parent

681,605
75,37757,714
17,663799,881
142,724
63,86678,857671
2,226
640,992
10,742
1,470
656,103

2,805
2,517
627,759

10,305
2,003
3,954
16,263
657,504

9,996
9,723
4,332
24,052
690,839

19,758
10,34730,105

3,829
919
4,748

18,159
7,262
2,168
924
28,516
659,093

18

614
1,335
742
2,710
692,877

8,665
3,794
12,459646,633
4,209
642,424

3,864(9,982)(6,117)
698,994
4,090
694,904

13

2,950
636,033--

Consolidated Statement of Comprehensive Income(Millions of yen)
Year

Year

Profit (loss)

ended

ended

March 31, 2022

March 31, 2023

646,633

698,994

Net unrealized holding gain (loss) on investment securities

1,581

894

Deferred gain (loss) on hedges

1,470

402

Foreign currency translation adjustments

10,95912,014Retirement benefits liability adjustments

881

(29)

Share of other comprehensive income (loss) of unconsolidated
subsidiaries and affiliates accounted for using equity method

5,737

81,759Total other comprehensive income

20,63095,042Comprehensive income

667,264

794,036(Breakdown)

667,264

794,036

662,543

789,261

4,720

4,774

Other comprehensive income :Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

14Consolidated Statement of Changes in Net Assets
Kawasaki Kisen Kaisha, Ltd. and Consolidated Subsidiaries for the year ended March 31, 2022

(Millions of yen)
Shareholders' equity

Common stock
Balance at April 1, 2021

Retainedearnings

Capital surplus
75,457

14,295

Treasury stock
130,723

Cumulative effects of changes in accounting policies
Restated balance

Total shareholders' equity(2,373)

218,103(2,373)222,085

3,982
75,457

14,295

3,982

134,706

Change in items during the year
Cash dividends－

Profit (loss) attributable to owners of the parent

642,424

642,424

Purchase of treasury stock

(4)

(4)

Disposal of treasury stock－

Cancellation of treasury stock－

Share exchanges－

Change in ownership interest of parent due to transactions with non-controllinginterests

(80)

(80)

Reversal of revaluation reserve for land－

Net changes in retained earnings from changes in scope of consolidation or equity
method(0)(0)

Net changes in items other than shareholders' equity
Net changes during the year

－

(80)

642,424(4)

642,338

Balance at March 31, 2022

75,457

14,214

777,130(2,378)864,424

Accumulated other comprehensive income

Balance at April 1, 2021

Net unrealized holding gain
(loss) on investments insecurities

Deferred gain (loss) on hedges

Revaluation reserve for land

3,960

(3,657)4,630

Foreign currency translation
adjustments(1,963)Retirement benefits liability
adjustments(2,879)Non-controlling interests

Total accumulated othercomprehensive income
90

Cumulative effects of changes in accounting policies
Restated balance

3,960(3,657)

4,630(1,963)(2,879)90

Total net assets

97,968316,162

88

4,070

98,056320,233

Change in items during the year
Cash dividends－

Profit (loss) attributable to owners of the parent

642,424

Purchase of treasury stock(4)

Disposal of treasury stock－

Cancellation of treasury stock－

Share exchanges－

Change in ownership interest of parent due to transactions with non-controllinginterests(80)

Reversal of revaluation reserve for land－

Net changes in retained earnings from changes in scope of consolidation or equity
method

(0)
1,514

2,764

－

14,917923

20,1192,191

22,311

Net changes during the year

Net changes in items other than shareholders' equity

1,514

2,764

－

14,917923

20,1192,191

664,649

Balance at March 31, 2022

5,474

(893)

4,630

12,954(1,956)

20,209100,248984,88215

Consolidated Statement of Changes in Net Assets
Kawasaki Kisen Kaisha, Ltd. and Consolidated Subsidiaries for the year ended March 31, 2023

(Millions of yen)
Shareholders' equity

Common stock
Balance at April 1, 2022

Retainedearnings

Capital surplus

Treasury stock

Total shareholders' equity

75,457

14,214

777,130(2,378)864,42475,457

14,214

777,130(2,378)864,424

Cumulative effects of changes in accounting policies
Restated balance－

Change in items during the year
Cash dividends(84,613)(84,613)

Profit (loss) attributable to owners of the parent

694,904

694,904

Purchase of treasury stock
Disposal of treasury stock

60

Cancellation of treasury stock(381)

Share exchanges(84,574)

14,898Change in ownership interest of parent due to transactions with non-controllinginterests(89,558)(89,558)30

90

84,955－400

15,299310

310

Reversal of revaluation reserve for land

(52)

(52)

Net changes in retained earnings from changes in scope of consolidation or equity
method(25)(25)

Net changes in items other than shareholders' equity
Net changes during the year－

14,888525,639(4,172)536,355

Balance at March 31, 2023

75,457

29,102

1,302,769(6,550)1,400,779

Retirement benefits liability
adjustments

Accumulated other comprehensive income

Balance at April 1, 2022

Net unrealized holding gain
(loss) on investments insecurities

Deferred gain (loss) on hedges

Revaluation reserve for land

Foreign currency translation
adjustments

5,474

(893)

4,630

12,954(1,956)

20,209100,248984,882

5,474

(893)

4,630

12,954(1,956)

20,209100,248984,882

Total accumulated othercomprehensive income

Non-controlling interests

Cumulative effects of changes in accounting policies
Restated balance

Total net assets－

Change in items during the year
Cash dividends(84,613)

Profit (loss) attributable to owners of the parent

694,904

Purchase of treasury stock(89,558)

Disposal of treasury stock

90

Cancellation of treasury stock－

Share exchanges

15,299Change in ownership interest of parent due to transactions with non-controllinginterests

310

Reversal of revaluation reserve for land(52)

Net changes in retained earnings from changes in scope of consolidation or equity
method

(25)
1,007

2,994

52

90,398(43)

94,409(68,968)

25,441

Net changes during the year

Net changes in items other than shareholders' equity

1,007

2,994

52

90,398(43)

94,409(68,968)

561,796

Balance at March 31, 2023

6,482

2,100

4,682

103,353(2,000)114,619

31,2801,546,679

16

Consolidated Statement of Cash Flows(Millions of yen)

Year
ended
March 31, 2022

Cash flows from operating activities :Profit (loss) before income taxes
Depreciation and amortization
Increase (decrease) in liability for retirement benefits(Increase) decrease in asset for retirement benefits
Increase (decrease) in retirement benefits liability adjustments
Increase (decrease) in provision for directors’ and audit and supervisory board
members’ retirement benefits
Increase (decrease) in provision for periodic dry docking of vessels
Increase (decrease) in provision for loss related to the Anti-Monopoly Act
Increase (decrease) in provision for loss on chartering contracts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Impairment losses
Equity in (earnings) losses of unconsolidated subsidiaries and affiliates
Loss on cancellation of chartered vessels
Provision for loss on liquidation of subsidiaries and affiliates(Gain) loss on sales of vessels, property and equipment(Gain) loss on change in equity(Increase) decrease in accounts and notes receivable – trade and contract assets(Increase) decrease in inventories(Increase) decrease in other current assets
Increase (decrease) in accounts and notes payable – trade
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Payments for cancellation of chartered vessels
Payments related to the Anti-Monopoly Act
Income taxes paid
Net cash provided by (used in) operating activities

Year
ended
March 31, 2023

659,093
42,821
(99)
(371)
980

692,877
42,396
439
(171)
(125)

(185)

(79)

1,463
(1,652)(2,898)10,305(8,291)
18,159(640,992)
7,262
2,168
(19,756)(28,855)(14,024)
1,754
2,524
8,097
(8,026)29,476217,357(10,435)(6,715)(328)(2,894)
226,460

1,389
1,335
(4,294)(5,323)
9,996
7,786
18
(627,759)(3,802)614(1,651)(1,642)(8,586)(1,969)(1,935)
3,979
103,489
368,103(9,676)(546)(399)(4,919)456,049(6,588)
6,114(4,249)252(4,231)
4,729(21,669)
965

Cash flows from investing activities :Payments into time deposits
Proceeds from withdrawal of time deposits
Purchases of marketable securities and investment securities
Proceeds from sales of marketable securities and investment securities
Proceeds from sales of shares of subsidiaries resulting in change in scope of
consolidation
Purchase of vessels, property and equipment
Proceeds from sales of vessels, property and equipment
Purchase of intangible assets
Payments of long-term loans receivableCollection of long-term loans receivable
Other, net
Net cash provided by (used in) investing activities

2,810

4,882

(41,140)
46,382(821)(6,824)
1,331(3,115)(5,848)(67,641)
37,746(867)(2,264)
3,835(2,230)(46,745)

Cash flows from financing activities :Increase (decrease) in short-term loans, net
Proceeds from long-term loans
Repayments of long-term loans and obligations under finance leases
Redemption of bonds
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Repayments to non-controlling interests(244)
76,339(190,309)(4)(0)(1,124)-(635)
44,450(102,294)(7,000)(89,558)(84,506)(4,035)(56,875)

(663)

(289)

14

11

Purchase of shares of subsidiaries not resulting in change in scope of consolidation
Proceeds from sales of shares of subsidiaries not resulting in change in scope of
consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

(8)

(57)

(116,001)(300,790)

9,705(6,001)

Net increase (decrease) in cash and cash equivalents

114,314102,512

Cash and cash equivalents at beginning of the year
Increase in cash and cash equivalents arising from initial consolidation of subsidiaries

130,0011

244,316
2

Cash and cash equivalents at end of the year

244,316

346,83117

8. Explanatory Notes to Consolidated Financial Statements(Notes Regarding Going Concern Assumption)
Not applicable.
(Change in Accounting Standards)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(Accounting Standards Board of Japan (“ASBJ”) Guidance No. 31, June 17, 2021; hereinafter “Implementation
Guidance on Fair Value Measurement Standard”) from the beginning of the fiscal year ended March 31, 2023. The
company has prospectively applied the new accounting policies stipulated by the Implementation Guidance on Fair
Value Measurement Standard, in accordance with the transitional treatment provided in Paragraph 27-2 of the
Implementation Guidance on Fair Value Measurement Standard. There was no effect of the application of
Implementation Guidance on Fair Value Measurement Standard on the consolidated financial statements for the fiscal
year ended March 31, 2023.
(Additional Information)(Application of Treatment for Accounting and Disclosure under Group Tax Sharing System)
The Company and certain domestic subsidiaries have transferred from the consolidated taxation system to the grouptax sharing system from the beginning of the fiscal year ended March 31, 2023. In accordance with the change, theCompany and certain domestic subsidiaries have applied the “Practical Solution on the Accounting and Disclosure
Under the Group Tax Sharing System” (Practical Issues Task Force (“PITF”) No. 42, August 12, 2021; hereinafter“PITF No. 42”), which provides for accounting treatment and disclosure of corporate tax and local corporate taxes
and tax effect accounting. In accordance with Paragraph 32 (1) of PITF No. 42, there is no effect on the consolidated
financial statements due to the change in accounting standards resulting from the application of PITF No. 42.

18

Segment Information
Year ended March 31, 2022
(Millions of yen)
Dry bulk

Energy resource
Product logistics
transport

Other

Total

Adjustments
andeliminations

Consolidated

Revenues
Revenues from contracts with customers
Other revenues
Operating revenues from customers
Inter-group revenues and transfers
Total revenues
Segment profit (loss)
Segment assets

271,352
5,126
276,47817
276,496
23,744
372,585

84,295
5,431
89,726
12
89,7384,766
182,867

374,369
5,827
380,196
13,503393,699
640,814
981,765

10,48991
10,58050,92461,505(106)
45,514

740,506
16,476756,983
64,457
821,440669,219
1,582,732(64,457)(64,457)(11,715)(7,772)756,983
657,504
1,574,960

Depreciation and amortization
Interest income
Interest expenses
Equity in earnings (loss) of unconsolidated subsidiaries and affiliates

15,559
104
2,181
48

10,338
349
4,005
2,445

16,232
201
3,968
638,344

481
39
31
154

42,611
695
10,187
640,992

210
(23)
118
-

42,821671
10,305640,992

Investments in subsidiaries and affiliates accounted for by the equity
method498

31,213

629,559

4,340

665,611-665,611

15,251

4,616

22,509526

42,905

Increase in vessels, property and equipment,
and intangible assets

537

740,506
16,476756,983-

43,442

Year ended March 31, 2023
(Millions of yen)
Dry bulk
Revenues
Revenues from contracts with customers
Other revenues
Operating revenues from customers
Inter-group revenues and transfers
Total revenues
Segment profit (loss)
Segment assets
Depreciation and amortization
Interest income
Interest expenses
Equity in earnings (loss) of unconsolidated subsidiaries and affiliates
Investments in subsidiaries and affiliates accounted for by the equity
methodIncrease in vessels, property and equipment,
and intangible assets

Energy resource
Product logistics
transport

Other

Total

Adjustments
andeliminations

Consolidated

307,835
4,431
312,26742
312,30921,613
289,480

96,024
4,201
100,225
24
100,250
9,847
248,776

513,637
6,156
519,794
5,516
525,310670,036
1,486,078

10,195
123
10,31857,42167,739806
47,468927,693
14,912
942,606
63,004
1,005,610
702,3032,071,804(63,004)(63,004)(11,464)(19,187)

14,662
242
2,893
88

9,972
719
3,268
2,956

16,557
326
3,606
624,458

679
128
26
256

41,8701,417
9,795
627,759

525
1,388
201

589

38,046

974,4125,102

1,018,150

4,481

32,411

33,971

246

71,112

19715

927,693
14,912
942,606
942,606
690,839
2,052,616-

42,396
2,805
9,996
627,759-

1,018,150
71,827