News and Press Releases

Kawasaki Kisen Kaisha, Ltd. ("K" Line) announces today that it was approved by its board of directors that SAL Heavy lift GmbH (SAL), its subsidiary company, enters into agreement to ransfer its share to SALTO Holding GmbH & Co. KG. (SALTO).

Outline of the company to be transferred.

(1) Company Name	SAL Heavy Lift GmbH
(2) Head Office	Brooktorkai 20, 20457 Hamburg, Germany
(3) Representative	Executive Chairman Yutaka Nakagawa
(4) Main Business	Owning of Heavylifter Vessels and Trans port of Heavy Cargoes
(5) Capital	Eur 155,458,544.00
(6) Date Esablished	May 9, 1980
(7) Main Shareholder and Share Ownership Ratio	"K" Line Heavy Lift (Germany) GmbH 100% (Listed company's 100% owning subsidiary)
Relationship with (8) Subsidiary	Capital	Whole voting rights are held by the listed company's 100% owning subsidiary
	Personnel	One executive officer and two employee are engaged.
	Business Trans actions	some inves tment capital to aquire s hip as s ets are lent
(9) Subsidiary's consolidated business performance nad and cons olidated financial s tatus for the three mos t recent years (Unit : Eur 1,000)
Reporting period for Year Ended	March 2015		March 2016	March 2017
Net Assets	97,201.17		72,333.31	△ 25,127.79
Total Assets	358,296.14		315,350.89	196,872.26
Net Assets per Share (Eur)	0.63		0.47	△ 0.16
Sales	201,594.23		151,617.72	133,626.67
Operating Profit	6,367.97		△ 17,846.98	△ 17,303.30
Ordinary Profit	4,508.49		△ 23,079.41	△ 17,356.96
Net Income	14,272.43		△ 24,867.86	△ 97,461.10
Net Income per Share (Eur)	0.09		△ 0.16	△ 0.63
Dividend per Share (Eur)	-		-	-

for reference: as of 31 March 2017 Euro 1=Yen 119.79

Background

plan" in 2016 and has studied over the last fiscal year on how a sweeping reform of the company could be made. Upon giving careful considerations to the situation, it was decided that the best solution should be to transfer the business to SALTO.

Outline of the transferee

(1) Company name	SALTO Holding GmbH & Co.KG
(2) Head Office	Hermann-Hollerith-Strasse 10, 28355 Bremen
(3) Representative	Dr.Martin Harren
(4) Main Business	Acquisition and managing of investments in shipping business
(5) Capital	Eur 10,000
(6) Date established	7th March 2017
(7) Consolidated NET capital	Eur 10,000
(8) Consolidated total asset	Eur 10,000
(9) Main Shareholder and Share Ownership Ratio	Dr.Martin Harren (50.1%),
	Peter Harren (49.9%)
(10) Relationship with Subsidiary	Capital	None
	Personell	None
	Business	None

It is NOT estimated that financial loss will be recorded in this fiscal year by this transaction. "K" Line's website URL https://www.kline.co.jp/en Note: The forecasts of financial results set forth in this document were calculated based on available information at the time of announcement.  Actual results may differ from the
forecast because of various factors such as future developments in the business environment.