NEWSLETTER

December 17, 2021
Kawasaki Kisen Kaisha, Ltd.
Notice Concerning Dissolution of Subsidiary Company and Transfer of Fixed Assets
Kawasaki Kisen Kaisha, Ltd. (“K” LINE) hereby announces that it was approved by its
board of directors to sell the offshore supports vessels owned by K LINE OFFSHORE AS(KOAS), its subsidiary company, and dissolve KOAS as described below.

1. Reason for the dissolution
In 2007 “K” LINE had established KOAS in Norway, as a consolidated subsidiary, to enter
offshore support vessel (OSV) business, expecting stable demand in the oil and gas fields ofthe North Sea. However, KOAS has long struggled after energy price decline, heavily affectedby dropped market since then. It was decided after careful consideration that the best solution
should be to sell all the vessels and dissolve KOAS taking expected profitability of OSVbusiness into consideration.
2. Outline of the company to be dissolved(1) Company Name

K LINE OFFSHORE AS(2) Head Office

Kystveien 14, 4841 Arendal, Norway(3) Representative

Chief Executive Officer: Tomoyuki Okawa(4) Main Business

Owning and Operating of Offshore Support Vessels(5) Capital

NOK 2,716,919,000（as of December 17, 2021）(6) Date Established2007(7) Main Shareholder and ShareOwnership Ratio(8) Relationship with Subsidiary“K” LINE 100%
CapitalWhole voting rights are held by “K”

Relationship

LINE.

Personnel

One executive officer and one

Relationshipemployee are engaged.

BusinessRelationship

N/A(9) Subsidiary’s consolidated business performance and consolidated financial status forthe three most recent years (Unit: NOK 1,000)

KAWASAKI KISEN KAISHA, LTD.
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Reporting period for Year Ended

March 2019

March 2020

March 2021

Net Assets

768,723

915,116

873,358

Total Assets

2,182,777

2,351,277

1,956,960

Net Assets per Share (NOK)

365398348

Sales

318,017421,570

300,715

Operating Profit▲84,814

11,011▲89,303

Ordinary Profit▲203,629▲43,606▲134,058▲346,014▲43,606▲256,758▲164▲19▲102

Net Income attributable to ownersof parent
Net Income per Share (NOK)For reference:

As of March 31, 2019, NOK 1 = JPY 12.85
As of March 31, 2020, NOK 1 = JPY 10.26
As of March 31, 2021, NOK 1 = JPY 12.96
3. Details of fixed assets (vessels) to be transferred
4 PSV’s (Platform Supply Vessel)
2 AHTS’s (Anchor Handling Tug Supply Vessel)*The primary function for PSV is transportation of materials and fuels to and from offshore
oil and gas rigs, and AHTS specializes in towing and relocating oil rigs, and handling anchorsfor oil rigs.
*”K” LINE refrains from disclosing the name of transferee, transfer value and book value ofthe subject assets at the request of the transferee. There is no capital relationship norbusiness relationship with the transferee to be noted, and “K” LINE and its group companies
are not considered to be the related parties of the transferee.
4. Overview of ownership of the share(1) Ownership of the share
before dissolution(2) Ownership of the shareafter dissolution

NOK 2,716,919,000（as of December 17, 2021）（Number of voting rights：2,716,919）（Proportion of voting rights held：100％）
NOK （Number of voting rights：-）（Proportion of voting rights held：-％）KAWASAKI KISEN KAISHA, LTD.
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5. Timetable(1) Date of resolution at themeeting of the Board ofDecember 17, 2021

Directors(2) Date of vessel delivery(3) Date of dissolution

4th Quarter of the fiscal year ending March 31, 2022(scheduled)
1st half of the fiscal year ending March 31, 2023 (scheduled)

6. Extraordinary Loss to be recognized“K” LINE expects recording an impairment loss of approximately JPY 13 billion as a resultof transfer of fixed assets, and an extraordinary loss of approximately JPY 4 billion as aprovision of allowance for loss on liquidation of subsidiaries and affiliates. In total an
extraordinary loss of approximately JPY 17 billion will be recorded in its consolidated financial
statements for the fiscal year ending March 31, 2022. This dissolution is a part of structuralreform planned to be conducted in the 2nd half of FY2021, which was released on May 10,2021 in the consolidated financial results forecasts for the fiscal year ending March 31, 2022.
It is estimated that there will be no change in the consolidated financial results forecasts forthe fiscal year ending March 31, 2022.
The actual results may differ from the forecasts depending on various factors such as
foreign exchange rates.
For further information, please contact:
Kei Onishi
General Manager, Electricity and Offshore Business Group
Tel: +81-3-3595-5632
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.
[Reference purpose only] 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 Japaneseoriginal, the original shall prevail.

KAWASAKI KISEN KAISHA, LTD.
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Corporate Sustainability, IR and Communication Group