Kawasaki Kisen Kaisha : Management Policy and Medium-term Management Plan

April 28, 2017

Management Policy and Medium-term Management Plan

Kawasaki Kisen Kaisha, Ltd. ("K" Line) is pleased to introduce "K" Line Group's new management policy and medium-term management plan: '"Revival for Greater Strides" - "K" Line Value for our Next Century -' which runs for three years from April 2017 toward our 100th anniversary in 2019 in response to the big business environment change in marine transportation industry and aiming the rebuilding of management base to allowing us to grow consistently.

1. Management Policy

   • Corporate Principles and Vision

     We added one sentence to confirm our approach to customers and society in our corporate vision.

   • Important management theme

     We recognize following three as our group's theme to respond business environment change.

     • Maximize our strengths to ensure competitiveness

     • Transform business portfolio to reduce influence from market volatility

     • Achieve growth by technological and business model innovation

2. Medium-term management plan: "Revival for Greater Strides" - "K" Line Value for our Next Century -

   ◇We will rebuild the base of business to realize our Vision for three years from April 2017 toward our 100th anniversary in 2019 through following three initiative.

   • Rebuilding portfolio strategy

   • Advanced management and strategy

   • ESG Measures

   • KPI Targets

     Long-term target (Mid-2020s):

     • Achieve ROA(ordinary income) of 6％ and ROE of double digits

     • Shareholders equity 400 billion (Verify benefits from containership business integration, plan to reset)

     • Return to stable dividend policy

       Medium-term management plan (FY2017-FY2019):

     • Return to profit in three years from FY2017

     • Achieve 6% ROA(ordinary income）in stable-income business, and expand business scale

     • Raising the equity ratio to 20+%

     • Prioritize to stabilize our business base and financial position, but aiming to resume paying dividend soon

Please visit our following website for the details and related documents. http://www.kline.co.jp/en/ir/library/plan/ icsFiles /afieldfile /2017/04/28/valueaction.pdf

For further information, please contact:

Takenori Igarashi

General Manager, Corporate Planning Group Tel: +81-3-3595-5594 Fax: +81-3-3595-5175

Kiyoshi Tokonami

General Manager, IR & PR Group

Tel: +81-3-3595-5189 Fax: +81-3-3595-5001