Kawasaki Kisen Kaisha (9107) Investor Update summary

Initiatives for medium- to long-term growth

• Focus on sustainable growth by leveraging strengths in safety, environmental technologies, and digital transformation, integrated across all business segments.

• Growth acceleration targeted through partnerships and M&A, especially in areas where core strengths can be maximized.

• Expansion into new business areas such as liquefied gas and specialized cargo, and building decarbonization-focused supply chains.

• Introduction of low-carbon and zero-emission vessels to deliver new value and meet customer needs.

• Commitment to investment discipline while enhancing competitiveness and transport capacity.

Car carrier business: market trends and strategy

• Supply and demand for car carriers expected to balance around 2026, with close monitoring needed for vessel retirements and newbuilds post-2030.

• Annual demand growth of about 1% anticipated, driven by steady auto sales and BEV expansion.

• Strategy centers on environmental measures, customer-oriented proposals, and route network reorganization.

• Proactive acquisition of eco-friendly vessels, with 9 in operation and contracts for more underway.

• KPI progress includes significant increases in eco-friendly transport volume and route optimization.

Car carrier business: earnings and risk management

• FY30 target of 110.0 billion yen+ in ordinary income, with a 15% earnings increase expected by FY25, mainly from eco-friendly vessel introduction.

• FY25 profit decline limited to around 25% due to higher costs and tariffs, with ongoing efforts to stabilize earnings via long-term contracts and flexible capacity.

• U.S. tariffs and Suez Canal disruptions pose risks, but impacts are being managed through fleet and service adjustments.