November 2, 2023
Kawasaki Kisen Kaisha, Ltd.
Notice Regarding Disposal of Treasury Stock through Third-Party Allotment Associated withAdditional Contribution to Board Benefit Trust (BBT)
Kawasaki Kisen Kaisha, Ltd. (hereinafter referred to as “the Company”) hereby announcesthat the Company has resolved to carry out disposal of treasury stock through third-partyallotment (hereinafter referred to as “the Disposal of Treasury Stock”) at its meeting of theBoard of Directors held on November 2, 2023, as follows.
1. Outline of the Disposal(1)
Disposal date(2)Class and number of shares to bedisposed(3)
Disposal price(4)
Total disposal amount(5)
Intended disposal recipient(6)
OtherMonday, November 20, 2023
906,300 shares of common stock¥5,340 per share¥4,839,642,000
Custody Bank of Japan, Ltd. (Trust Account E)
The Disposal of Treasury Stock is subject to thesecurities registration statement under the
Financial Instruments and Exchange Act having
taken effect.

2. Purpose and Reason for the Disposal
Pursuant to resolution passed at the Ordinary General Meeting of Shareholders held on
June 24, 2016, the Company adopted the Board Benefit Trust (BBT) (hereinafter referred toas “the Plan” with a trust established based on the trust agreement executed with Mizuho
Trust & Banking Co., Ltd. in relation to the Plan referred to as “the Trust”). The Company
subsequently gained approval for revision of the maximum amount of remuneration pertaining
to the Plan at the Ordinary General Meeting of Shareholders held on June 23, 2023 (for anoutline of the Plan, please refer to “Notification of the Introduction of a Performance-based
Share Remuneration Plan” announced on April 28, 2016, and “Notice Concerning Revisions
to the Remuneration System for Executives” announced on March 14, 2023).
In seeking to ensure continuity of the Plan, the Company has decided to make additionalmonetary contribution to the Trust in order for the Trust to purchase shares deemednecessary for future benefits (hereinafter referred to as “the Additional Trust”). Furthermore,
the Company has decided to dispose of treasury stock (the Disposal of Treasury Stock)through third-party allotment to the Trust Account E established with Custody Bank of Japan,
Ltd. (the re-entrusted trustee who has received re-trust from Mizuho Trust & Banking Co.,
Ltd., which acts as the trustee of the Trust) for the sake of holding and disposing of theCompany’s stock in the course of operating the Plan.

The amount disposed of is to be equivalent to the number of shares that are likely to begranted to the Company’s officers, etc. during the trust period pursuant to the “Regulations for
Delivery of Shares to Officers” which accordingly constitutes 0.36% of the 250,712,389 total
number of shares issued as of September 30, 2023 (the ratio against the 2,380,446 total
number of voting rights as of September 30, 2023 amounts to 0.38% (both figures rounded tothe second decimal place)).
Note: Outline of the Additional Trust
Date of the Additional Trust:

November 20, 2023

Amount of the Additional Trust:¥4,839,642,000Class of shares to be purchased:

Common stock of the Company

Total number of shares to be purchased: 906,300 shares
Share purchase date:November 20, 2023

Share purchase method:

Purchased by underwriting the disposal oftreasury stock of the Company (the Disposal ofTreasury Stock)

3. Basis for Calculating Disposal Price and Specific Details Thereof
The disposal price is to be ¥5,340, which is the closing price of the Company’s common
stock on the Tokyo Stock Exchange on the business day immediately preceding the date ofthe resolution at the Board of Directors meeting pertaining to the Disposal of Treasury Stock.
It was decided to use the closing price on the business day immediately preceding the dateof the resolution at the Board of Directors meeting as this price accurately represents thecorporate value of the Company on the stock market and was deemed to be reasonable.
The disposal price of ¥5,340 is calculated by multiplying 101.02% by the ¥5,286 averageclosing price over the most recent one-month period (rounded down to the nearest yen)retroactively starting from the business day immediately preceding the date of the resolution
by the Board of Directors; by multiplying 103.85% by the ¥5,142 average closing price overthe most recent three-month period (rounded down to the nearest yen) retroactively startingfrom the business day immediately preceding the date of the resolution by the Board ofDirectors; or by multiplying 122.87% by the ¥4,346 average closing price over the most recent
six-month period (rounded down to the nearest yen) retroactively starting from the businessday immediately preceding the date of the resolution by the Board of Directors. Taking theabove into account, we deem that the disposal price pertaining to the Disposal of Treasury
Stock to be reasonable and not particularly advantageous.
Additionally, the 4 Audit & Supervisory Board Members who attended the meeting of theBoard of Directors (2 of whom are Outside Audit & Supervisory Board Members) expressed
opinions that the aforementioned disposal price is not particularly advantageous and is legal.

4. Matters Regarding Procedures within the Code of Corporate Conduct
Because the Disposal of Treasury Stock entails (i) dilution of less than 25%, and (ii) does
not entail change of a controlling shareholder, it does not require independent third-party
opinion or confirmation of shareholder intent as set forth in Rule 432 of the Securities Listing
Regulations established by Tokyo Stock Exchange, Inc.

For further information, please contact:
Masaya Futakuchi
General Manager, General Affairs Group
Tel: +81-3-3595-6568
Kawasaki Kisen Kaisha, Ltd.
“K” LINE’s website URL: https://www.kline.co.jp/en/index.html