Kawasaki Kisen Kaisha, Ltd. (“K” LINE), along with JERA Co., Inc. (JERA), Nippon Yusen Kabushiki Kaisha (NYK), and other partners, collaboratively operates an LNG bunkering business for LNG-fueled vessels in the Chubu region through joint venture companies*¹.

On November 5, 2024, approximately four years after the launch of business operation in October 2020, the LNG bunkering vessel “Kaguya”*² owned by the joint venture achieved its 100th ship-to-ship *³ LNG bunkering operation *⁴ in Mikawa Bay.

The joint venture is striving to expand its bunkering service to meet increasing demand of LNG as marine fuel in the Chubu region, arising from ever-growing global fleet of LNG-fueled vessels including “K”LINE’s “CENTURY HIGHWAY GREEN”*⁵, an LNG-fueled car carrier. By promoting the use of LNG as marine fuel through this project, “K” LINE contribute to reducing environmental load to the society.

In “K” LINE Environmental Vision 2050 -Blue Seas for the Future-*⁶, “K” LINE has set the 2030 interim target of improving CO2 emissions efficiency by 50% compared with 2008, surpassing the IMO target of a 40% improvement. Furthermore, “K” LINE sets its new target for 2050 as “The Challenge of Achieving Net-Zero GHG Emissions.” As an action plan, “K” LINE will continue to support the low-/decarbonization  of ourselves and society.

(*1)       Central LNG Shipping Japan Corporation and Central LNG Marine Fuel Japan Corporation
https://central-lng.com/en/

(*2)       Kaguya
This is the first LNG bunkering vessel operating in Japan, having commenced operation in October 2020. The name of the vessel is inspired from the “The Tale of the Bamboo Cutter,” considered the oldest story in Japan. It also reflect the aspiration for the LNG bunkering market to grow as tall and endure like bamboo.

(*3)       Ship-to-Ship Bunkering
A method of supplying LNG fuel in which an LNG bunkering vessel comes alongside an LNG-fueled vessel to supply LNG while it is moored at a quay or pier or anchored at designated location.

(*4)       Characteristics of LNG as marine fuel
Compared to heavy fuel oil, it is expected to cut sulfur oxide (SOx) and particulate matter (PM) emissions by about 100%, nitrogen oxides (NOx) by up to 80%, and carbon dioxide (CO₂) by about 30%. It is held to be a promising marine fuel that can replace heavy fuel oil in response to tightened international ship emission regulations.

(*5)       CENTURY HIGHWAY GREEN
A next-generation eco-friendly car carrier delivered on March 12, 2021. It continues to reduce greenhouse gas (GHG) emissions by using LNG as fuel.
https://www.kline.co.jp/en/news/car/car-20210312.html

(*6)       “K” LINE Environmental Vision 2050: Blue Seas for the Future
The revision in November 2021 sets CO2 reduction milestones for 2030, in excess of the IMO target, and includes “introduction of LNG-fueled vessels” and “commercialization of LNG bunkering” in the action plan.
https://www.kline.co.jp/en/sustainability/environment/management.htm

[Related Press Release]

September 18, 2020: Naming Ceremony Held for Japan’s First LNG Bunkering Vessel

https://www.kline.co.jp/en/news/Liquefied_gas/Liquefied_gas-20200918.html

March 16, 2021:Ship-to-ship Bunkering to the LNG-fueled Vessel CENTURY HIGHWAY GREEN

https://www.kline.co.jp/ja/news/Liquefied_gas/Liquefied_gas-20210316.html

November 15, 2024

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) held a global meeting for the dry bulk business at the company’s head office over a two-day period from November 7 to 8. The meeting gathered not only the members of the dry bulk team at the head office but also 26 national staff and representatives from 11 major overseas offices, with about 100 people engaging in lively discussions in either operation or sales sessions.

At the meeting, Masatoshi Taguchi, Managing Executive Officer (responsible for the Dry Bulk Carriers Unit) explained the role of the dry bulk business in “K” LINE’s portfolio, how to manage reasonable exposure to market risks, and the importance of initiatives to motivate customers to keep choosing “K” Line, including the polishing of “earning power” through vessel assignment optimization, after which everyone affirmed that they will work in unison to continue making efforts to further grow the dry bulk business and increase corporate value.

This year’s theme was “Evaluation of activities since last year’s meeting and future action plans!”

The KPIs identified in the previous fiscal year, such as safety/efficiency in navigation, profitability,  low-carbon/decarbonization efforts for CO2 emissions reduction, were analyzed and reflected on during the operation sessions, with frank discussions taking place about increasing safety and profitability in navigation and cargo operations as well as environment and DX challenges.

At the sales sessions, the participants analyzed and planned initiatives for achieving sales targets this year and expanding the revenue base in the future as well as were updated on challenges and progress related to the environment, both at “K” LINE

and with customers. Moreover, they checked the business structure for maintaining high-quality services and otherwise debated ways to enhance “K” LINE’s strengths through the concerted efforts of the Tokyo head office and overseas locations.

Going forward, “K” LINE will regularly hold global meetings and share KPIs globally, thereby improving customer-oriented service quality while also creating a sense of unity among our employees and strengthening teamwork. Our dry bulk business will realize sustainable profitability growth while at the same time growing and expanding the business together with customers, further developing its business network on a foundation of global diversity and adding environmental reaction to the advanced transportation knowhow accumulated over many years.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has posted to its official website a video that explains progress in the implementation of the medium-term management plan and the results in the second quarter of FY2024. The video is also posted on “K” Line With, a video communication site for “K” LINE Group’s employees.

A video explaining progress in implementing the medium-term management plan and results for the the second quarter of FY2024

https://www.kline.co.jp/en/corporate/kline_with.html

“K” LINE provides quarterly updates on the progress of its medium-term management plan through “K” Line With. Based on the FY2024 theme, “Steady Steps Toward Further Growth,” in addition to the video outlining the latest performance forecasts, it also focuses on three key aspects of the management plan: business strategy, functional strategy and capital policy. It offers detailed insights into the company’s initiatives and progress of the management plan, aiming to share this information with both internal and external stakeholders.

The new video features the progress of the business strategy and capital policy under the Medium-Term Management Plan. Regarding the capital policy, the progress of cash allocation from the time of the announcement of the Medium-Term Management Plan up to the present and the thinking behind the cash allocation are illustrated. It shows that “K” LINE has been accumulating the “trust” it needs to realize its corporate principle and vision by consistently working to improve its corporate value, from the “Objective of the “K” LINE Group” to its latest efforts under the Medium-Term Management Plan.

“K” LINE has posted the video on its official website in addition to “K” Line With to make outside stakeholders more aware of the Company’s activities. “K” LINE also aims to deepen understanding of the medium-term management plan among business sites on land and sea within the Group, globally promote internal communication and information sharing, encourage a sense of solidarity as a source of the Group’s strength, and reinforce the foundation of its business operations.

A news release related to “K” Line With

November 17, 2023: Sharing Information within the Group Using Video Communication Site for Employees “K” Line With

https://www.kline.co.jp/en/news/other/other-20231117.html

5 November 2024

Kawasaki Kisen Kaisha, Ltd.

Please be advised that “K” Line Tokyo Head Office made the following press release today, please refer to the attached PDF documents.

It is also available on the Website both in English and Japanese.

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

・Financial Highlights for 2nd Quarter FY2024

・Notification of Stock Repurchase and Share Buyback through Off-Auction Own Share Repurchase Trading (ToSTNeT-3)

・Notice on Revision to Dividend and Dividend Forecast for the Fiscal Year Ending March 2025

Kawasaki Kisen Kaisha, Ltd.

Kawasaki Kinkai Kisen Kaisha, Ltd.

“K” Line Wind Service, Ltd.

“K” Line Wind Service, LTD. (“K” Line Wind), a joint venture between Kawasaki Kisen Kaisha, Ltd. and Kawasaki Kinkai Kisen Kaisha, Ltd., has signed an agreement with Japan Marine United Corporation (JMU) for a commissioned study on efficient mooring construction methods as part of its participation in the Development of the Southern Akita Floating Offshore Wind Demonstration Project Aimed at Overseas Expansion via Cost Reductions, (the Project). The project is a part of the New Energy and Industrial Technology Development Organization (NEDO)’s Green Innovation Fund Project*¹/Cost Reductions for Offshore Wind Power Generation/Floating Offshore Wind Power Demonstration Project  (Phase 2).

JMU received formal notification of the approval of the NEDO grant for the Project. The Project is being conducted by a consortium led by Marubeni Offshore Wind Development Corporation, with the participation of JMU, Tohoku Electric Power Co., Inc., Akita Floating Offshore Wind Corporation, TOA CORPORATION, TOKYO SEIKO ROPE MFG. CO., LTD., Kanden Plant Corporation, JFE Engineering Corporation, and NAKANIHON AIR Co., Ltd. The main objectives of the Project are to install two 15 MW-class wind turbines in the southern offshore region of Akita Prefecture, to address technical challenges related to the mass-production method of floating foundations and to reduce the cost of installation.

“K” Line Wind has been involved in phase 1 of the Green Innovation Fund Project/Cost Reductions for Offshore Wind Power Generation/ Floating Foundation/Low-Cost Installation Technology Development Project (2021–2023) and conducted intensive research for efficient mooring methods for large-scale Floating Offshore Wind farms.*² As a result of these efforts, in February 2024, “K” Line Wind, JMU, and Nihon Shipyard Co., Ltd. have announced the  approval in principle (AiP) for the design concept of the multi-functional floating offshore windfarm support vessel. *³ Additionally, in September 2024, the company published the Guidelines for the Towing and Mooring Installation of Floating Offshore Wind Power Equipment in collaboration with the Nippon Kaiji Kyokai (ClassNK).*⁴ The work commissioned in phase 2 builds on the mooring installation technologies developed in phase 1, advancing them for their practical application in commercial-scale projects.

To efficiently install large-scale floating wind turbines, specialized vessels suitable for Japan’s unique maritime and weather conditions must be used. “K” Line Wind, in collaboration with JMU, is dedicated to the research and development of efficient mooring installation techniques, with the aim of reducing costs and improving the construction efficiency of floating offshore wind farms. “K” Line Wind will continue to be committed to contributing to the development and implementation of floating offshore wind power technologies through its research and development efforts. The company aims to promote the large-scale deployment of floating offshore wind power generation systems and the reduction of their cost while also contributing to the realization of a low-carbon and decarbonized society.

(*1) The Green Innovation Fund Projects

To achieve carbon neutrality by 2050, a fund established under NEDO provides continuous support for R&D projects, demonstrations, and social implementation projects for up to 10 years to companies that commit to ambitious goals.

(*2) January 21, 2022: Joint project on “Mass-production and Cost Reduction of Floating Offshore Wind Installation” adopted as Green Innovation Fund

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-20220121.html

(*3) February 28, 2024: NEDO Green Innovation Fund Project: Approval in Principle (AiP) from Japanese Classification Society Class NK for the design concept of the Multi-functional Floating offshore windfarm Support Vessel

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-20240228.html

(*4) September 24, 2024: the Guidelines for the Towing and Mooring Installation of Floating Offshore Wind Power Equipment Related to the NEDO Green Innovation Fund Project “Technology Development Project for Basic Manufacturing and Installation Cost Reduction for Floating Wind Turbines.”
https://klinewind.jp/pdf/press_release_20240924.pdf

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) organized “K” LINE UNIVERSITY 2024 (KLU 2024) to instill the “K” LINE Group’s management policy into and create a sense of unity among the members of the “K” LINE Group.

KLU 2024 took place over four days from Monday, October 21 to Thursday, October 24, following up on last year’s event, the first in eight years, and 24 members of the Group from “K” LINE’s overseas bases and Group companies in 18 countries and regions participated in the event.

For the “K” LINE Group, embracing diverse values is a source of competitiveness in global business. On the subject of leadership, KLU 2024 featured explanations of the business strategy by management executives, a guided tour of the shipyard, workshops with participants including head office staff and other programs. By participating in a range of exchanges of views, the participants engaged in face-to-face communication designed to develop their embrace of diverse values and sense of unity (diversity and inclusion).

Moving forward, “K” LINE is committed to the continued growth of the Group as a whole while increasing its corporate value by embracing diverse value to secure and train personnel capable of supporting the portfolios of the different businesses and execute business strategies at a high level.