"K" Line

12th July 2017  :  Kawasaki Kisen Kaisha, Ltd. (“K” Line) has been selected again as a constituent of the FTSE4Good Global Index, one of the leading global indices for Socially Responsible Investment (SRI) (*1), for the 15th consecutive year since its initial inclusion in 2003.

FTSE4Good Global Index is an index developed by FTSE Russell (*2), whose constituents are selected by measuring their performance in terms of management and information disclosure utilizing globally-recognized Environmental, Social and Governance (ESG) standards (Japanese companies number 148 out of 883 global companies). The index is a leading indicator used by investors who place importance on corporate social responsibility and sustainability.

In addition, we were also selected as a constituent of the FTSE Blossom Japan Index which reflects the performance of Japanese companies that demonstrate strong ESG practices (151 companies selected), and MSCI(*3) Japan Empowering Women Index (WIN) which is constituted of companies that promote and maintain higher levels of gender diversity in individual industry sector (212 companies selected). These indices are adopted as a benchmark of ESG investment by Government Pension Investment Fund (GPIF).

We have raised ESG as one of the important initiatives in our medium-term management plan. We will continue striving to fulfill our social responsibility through ESG initiatives and contribute to sustainable progress of the society.

*1 SRI (Socially Responsible Investment) describes an investment strategy which takes account of enterprises’ social, ethical and environmental aspects as well as financial performance.

*2 FTSE Russell is owned by London Stock Exchange Group, an index company offering indexing and analytical solutions worldwide.

*3 MSCI is listed on New York Stock Exchange, a provider of investment decision support tools worldwide.

10th July 2017

1. Changes of Executive Officers.
   (1) Retirement scheduled for September 30, 2017

2. Responsibilities of Executive Officers on and after October 1, 2017

The responsibilities of Executive Officers scheduled on and after October 1, 2017 to be notified

7th July 2017

Kawasaki Kisen Kaisha, Ltd. (“K” Line) held a naming ceremony for the newly-built, very large liquefied petroleum gas (LPG) carrier for Astomos Energy Corporation (Astomos Energy) at Sakaide Shipyard of Kawasaki Heavy Industries, Ltd. on July 6, 2017.

The new vessel was given her name “CRYSTAL RIVER” by Mr. Osamu Masuda, President of Astomos Energy. The name was given with our hope that she will “crystalize” our ambition and promise to always provide safe navigation, and our wish for the prosperity of her voyages in the ever-growing seaborne LPG trading.

CRYSTAL RIVER will commence her service to Astomos Energy under a memorial first-ever time charter contract directly concluded between the two companies upon her delivery from the shipyard, which is expected to be on July 14, 2017.

Main Particulars of the Vessel:

7th July 2017

“DRIVE GREEN HIGHWAY,” a 7,500RT large-scale car carrier operated by Kawasaki Kisen Kaisha, Ltd. (hereinafter “’K’ Line”), has been selected as recipient of the grand award of “Ship of the Year 2016” by the Japan Society of Naval Architects and Ocean Engineers. The award ceremony was held on July 7.

“Ship of the Year” has been annually awarded to the most technically, artistically and socially conscious vessel built in Japan. The award was established in 1990 and this year is the 27th anniversary.

The eco-flagship, “DRIVE GREEN HIGHWAY,” was built in recognition of our role to help lead the maritime industry in facing environmental issues, such as marine & air pollution, ecosystem protection and global heating. Sulfur oxide (SOx) and nitrogen oxide (NOx) are recognized as major causes of acid rain, and carbon dioxide (CO₂) as cause of global heating. “DRIVE GREEN HIGHWAY” is equipped with innovative technologies that contribute to reduction of air pollutant emissions. (*1)

“DRIVE GREEN HIGHWAY” was honored not only for its advanced equipment ahead of international regulations that will become effective, but also for its outstanding contribution to the maritime industry. On February 2, soon after delivery of the vessel, an unveiling party and onboard tour for the public were held at Osanbashi International Passenger Terminal in Yokohama. The ceremony was reported in and outside of Japan, receiving broad national international attention. (*2)

The construction of “DRIVE GREEN HIGHWAY” is a key milestone toward the goals set in our “Environmental Vision 2050.” We also place a high value on ESG (Environment, Social & Safety and Governance) in our new medium-term management plan as well.

Going forward, “K” Line will continue to pursue diverse environmental protection initiatives, including the development of measures to prevent air pollution, in order to help curb increasingly heavy environmental loads on a global scale.

7th July 2017

For the integration of their container shipping businesses, including worldwide terminal operation businesses outside Japan, Kawasaki Kisen Kaisha, Ltd., Mitsui O.S.K. Lines, Ltd., and Nippon Yusen Kabushiki Kaisha have announced the establishment of the below holding company and operating company.

Overview of New Companies

(1) Holding Company

Tradename :  Ocean Network Express Holdings, Ltd.

Location  :  Tokyo

Date of Establishment   :  July 7, 2017

(2) Operating Company

Tradename  :   Ocean Network Express Pte. Ltd.

Location  :  Singapore

Date of Establishment   :  July 7, 2017

Further details will be provided on July 10, 2017.

Kawasaki Kisen Kaisha, Ltd.  –  Eizo Murakami, President & CEO

Mitsui O.S.K. Lines, Ltd.  –  Junichiro Ikeda, President & CEO

Nippon Yusen Kabushiki Kaisha  –  Tadaaki Naito, President

July 4, 2017

Kawasaki Kisen Kaisha, Ltd.

Sumitomo Corporation

JGC Corporation

Development Bank of Japan Inc.

Four companies (hereinafter the “four partners”), namely, Kawasaki Kisen Kaisha, Ltd. (head office: Chiyoda-ku, Tokyo; President & CEO: Eizo Murakami; hereinafter “’K’ Line”), Sumitomo Corporation (head office: Chuo-ku, Tokyo; President & CEO: Kuniharu Nakamura), JGC Corporation (head office: Yokohama, Kanagawa Prefecture; Chairman & Representative Director: Masayuki Sato; hereinafter “JGC”), and Development Bank of Japan Inc. (head office: Chiyoda-ku, Tokyo; President & CEO: Masanori Yanagi; hereinafter “DBJ”) have agreed in principle to participate in the owning and chartering business for oil and gas floating production, storage and offloading (FPSO)¹ (hereinafter the “project”) run by the Malaysian offshore production services provider, Yinson Holdings Berhad and its group of companies (hereinafter “Yinson”).

After commencement of the definitive agreement, the four partners will acquire, through a joint venture, 26% of the shares of Yinson Production (West Africa) Pte. Ltd. (hereinafter “YP (WA) PL”), a FPSO owning company operated by Yinson. YP (WA) PL has concluded a 15-year long-term FPSO chartering agreement with Eni Ghana Exploration and Production LTd., which is an affiliate of the major Italian oil company Eni SPA, and started oil production at Offshore Cape Three Point Block (“OCTP”), approximately 60 kilometers south west of Ghana, in May 2017. Barring any unforeseen circumstances, the domestic supply of natural gas from FPSO is expected to commence in Ghana by mid-2018.

FPSO is key infrastructure for deep-water oil and gas production, which are likely to increase steadily in the future; thus, demand for FPSO is expected to increase. In preparation for this demand, “K” Line, Sumitomo Corporation and JGC will acquire knowledge and expertise through the project as their first FPSO owning and chartering business. DBJ will supply risk money with the “Special Investment Operations” as the project will help improve vitality and develop sustainability of the Japanese economy. Through the project, the four partners will contribute to stable oil and natural gas supplies in Ghana, thus solving natural gas and electricity shortages in the country.

¹ FPSO (floating production, storage and offloading) refers to facilities used for offshore crude oil and gas production—storage of the produced crude oil in a tank and direct offloading onto a tanker.

■Reference

Outline of the project

Outline of Yinson Holdings Berhad

Established in 1983 as a local transport and logistics company in Malaysia, which was divested from Yinson Group entirely in 2016. Yinson is currently a full-fledge company in the oil and gas industry and major player in the FPSO industry and is listed on the Main Market of the Malaysian stock exchange, Bursa Malaysia Securities Berhad. Yinson’s current fleet consist of five FPSOs and one floating, storage and offloading (“FSO”) unit as of June 2017.

Head office location: KL Eco City, 59200 Kuala Lumpur, Malaysia

Business: Marine services including offshore production services in support of global oil field developments

In previous press releases (see below), Kawasaki Kisen Kaisha, Ltd., Mitsui O.S.K. Lines, Ltd., and Nippon Yusen Kabushiki Kaisha announced the expected establishment of a holding company and an operating company by July 1, 2017, for the integration of the three companies’ container shipping businesses, including terminal operation businesses outside Japan.

As of today, the new company to be established has received all necessary approvals for compliance with local competition laws in regions and countries where compliance is required for the new company’s establishment, and progress is being made towards completing the establishment of the new integrated container shipping business. Further details will be announced upon completion of all establishment procedures.

In the Republic of South Africa, the new company expects to complete the approval process for compliance with competition law before the service commencement date of April 1, 2018.

Overall, there is no impact on the three companies’ integration plans for the new container shipping business, and the service commencement date for the new company is likewise unchanged from April 1, 2018.

Related press releases

“Notice of Trade Name and Location of New Container Shipping Joint Venture,” May 31, 2017,

http://www.mol.co.jp/en/pr/2017/img/17035.pdf

“Notice of Agreement to the Integration of Container Shipping Businesses,” October, 31, 2016,

http://www.nyk.com/english/release/dbps_data/_material_/_files/000/000/004/488/161031_5.pdf

June 21, 2017 — Evergreen Line has teamed up with Alibaba.com, a leading wholesale marketplace for global trade under Alibaba Group, to provide Alibaba.com members with the option of booking sea freight services online with guaranteed space and prices. Evergreen Line has also appointed Evergreen Logistics Corporation as a designated provider of customized, comprehensive logistics solutions for Alibaba.com members opting for its sea freight services.

The growth of e-commerce has resulted in small, fragmented orders from global buyers. Taking note of the need for user-friendly logistics services of smaller volume shippers, Evergreen Line is collaborating with Alibaba.com to allow shippers to search for freight rates and reserve cargo space on the Alibaba.com platform directly, a service that will be available to primarily suppliers in China. Once a booking is confirmed, the selected price is also locked-in.  The rate will not alter regardless of how the market price changes. With a guarantee of space and price, shippers can keep their production lines running with assurance and control their logistics costs with confidence.

In addition to this new direct booking facility , Evergreen Line is also responding to the needs of smaller shippers for one-stop logistics services by appointing Evergreen Logistics as a supplier of such services for Alibaba.com suppliers opting for Evergreen Line’s sea freight services, contactable at the online booking point. No matter if it is a trucking arrangement, customs clearance or documentation requirement, Evergreen Logistics can provide cost-effective and time-critical solutions to shippers who may not be familiar with such procedures.

At this initial stage of its partnership with Alibaba.com, Evergreen Line will be offering Alibaba.com suppliers the booking facility on routes from China’s main ports to Israel and the South American region. Detailed ports and service routes are outlined below:

• Israel Service

FEM

–     Port of Loading: Shekou, Yantian

–     Port of Discharge: Ashdod, Haifa at Israel

• South America Service

ESA

–     Port of Loading: Shanghai, Ningbo, Yantian

–     Port of Discharge: Buenos Aires, Argentina; Montevideo, Uruguay; Brazilian ports including Itaguai, Santos, Paranagua, Navegantes, Rio Grande

WSA/WSA2

–     Port of Loading: Shanghai, Ningbo, Shekou, Yantian

–     Port of Discharge: Buenaventura, Columbia; Guayaquil, Ecuador; Callao, Peru

On 5 June, “K” Line presented “K” Line Group Environmental Awards 2017 to recipients invited from national and international companies of the Group.

These Awards were established to give recognition to, and present prizes in the name of, the President for outstanding environmental and biodiversity conservation activities carried out by all offices and employees of the “K” Line Group under “K” Line Environmental Vision 2050 developed in March 2015 as our long-term environmental management policy.

For this year’s Awards 2017, third time this ceremony has been held, Mr. Eizo Murakami, President & CEO, has selected one Grand Award and eight Excellence Awards from among many applications, after considerable review that took into account such factors as “creativeness,” “difficulty,” “contribution level,” “continuity” and “repercussions.”

Through these Environmental Awards, “K” Line Group is engaged in promoting widespread awareness of various environmental conservation activities within the Group and encouraging others to likewise adopt those activities as actions of the entire Group. We will also continue to focus on how to contribute to environmental and biodiversity conservation in an active manner in order to fulfill our mission to hand down a sustainable society as well as this blue and beautiful ocean to the next generation, which is set under “K” Line Environmental Vision 2050.

Recipients of this year’s Awards 2017 are as shown below.

Grand Award

Energy Saving Project by Implementing Detailed Forecasting and Communication

(KAWASAKI KINKAI KISEN KAISHA, LTD.)

The shipper, weather information provider, and the shipping company (Kawasaki Kinkai Kisen) enabled to facilitate rapid and thorough positioning of the transportation plans by utilizing the weather information system in order to predict the demand of products which are affected by the temperature change.

In addition, the captioned vessels adopted an optimum route supporting system which established economic operations based on optimum routes by considering the meteorological and oceanographic phenomenon.

This activity won the Grand Award for the 17^th Annual Environmental Logistics Awards and also the Energy Conservation Grand Prize, Business Models Category, METI Minister’s Award.

Excellence Awards

Environmental Preservation Activities of PrixCar Services Pty. Ltd.

(“K” LINE (AUSTRALIA) PTY LIMITED)

Saving Cost and Protecting Environment Recycling Resource by Selling Wastes

Cost-Saving by Re-using Wood Wastes

(K LINE CONTAINER SERVICE (THAILAND) LTD. )

Publication of Petit Eco Information

(NITTO TOTAL LOGISTICS LTD.)

Adoption of Document Control Software for Electronic Storage of Office Papers

Office Group Software Adoption for Electronic Documents and Strengthening Safety Control

(SEAGATE CORPORATION)

E-learning for Vessel Crews, `Energy Efficiency Onboard`

(KAWASAKI KISEN KAISHA, LTD.  MARINE ENERGY SAVING DIVISION)

Why Clean India, for Our Future Children

(‘K’ LINE SHIP MANAGEMENT (INDIA) PRIVATE LIMITED &K Line Maritime Academy (India) )

Planting 240 Trees in Asparuhovo Region, Varna, Bulgaria

(STARGATE MARITIME LTD.)

Strengthening Environmental Awareness of Crews by Visiting the Vessels

(KAWASAKI KISEN KAISHA, LTD. CONTAINERSHIPS STRATEGIC GROUP CONTAINER TRANSPORT MANAGEMENT TEAM)

June 2, 2017

Kawasaki Kisen Kaisha, Ltd. was once again re-selected for inclusion in the ETHIBEL EXCELLENCE Investment Register investment universe (*) operated by the Forum ETHIBEL, an organization in Belgium that promotes socially responsible investments (www.forumethibel.org), following similar recognition in 2014.

This investment universe consists of 350 companies fulfilling their social responsibility and demonstrating a higher than usual level of performance, of which 41 companies are Japanese. An assessment was implemented in each field of human rights, human resources, environment, business behavior, governance and community involvement in the selection and our initiatives in these fields were highly regarded.

(*) Investment universe: Stocks that are candidates for fund investments.

We have raised ESG (Environment, Social and Governance) as one of the important initiatives in our medium-term management plan, “Revival for Greater Strides” for three years from April 2017 toward our 100th Anniversary in 2019, which was announced on April 28, 2017. We will continue striving to fulfill our social responsibility through ESG initiatives and contribute to sustainable progress of the society.