Kawasaki Kisen Kaisha : Notification of Progress of Share Buyback through Off-Auction Own Share Repurchase Trading (ToSTNeT-3)

N E W S L E T T E R

May 9, 2024

Notification of Progress of Share Buyback through

Off-Auction Own Share Repurchase Trading (ToSTNeT-3)

Regarding the notification of stock repurchase disclosed on May 7, 2024, Kawasaki Kisen Kaisha, Ltd. ("K" LINE) today reported and announced the progress of the share buyback pursuant to the resolution above with the following details:

1. Purpose of stock repurchase:

"K" LINE is always conscious of capital efficiency. Our basic policy is to improve shareholder profits over the medium and long terms by proactively promoting shareholder returns, including share buyback. This is done by taking cash flow into consideration and ensuring the investment level and financial stability necessary to improve our corporate value. Furthermore, in five-yearmedium-term management plan for the fiscal year 2022 to the fiscal year 2026, we have raised the lower limit of the total amount of shareholder returns from at least 500.0 billion yen to at least 700.0 billion yen. For fiscal year 2024 and beyond, we plan to implement an additional return of 150.0 billion yen in addition to the basic dividend and additional dividend. Considering the scale of this additional shareholder's return, the Company has determined that the best way to do this will be to perform a share buyback capped at 100.0 billion yen. The buyback will be implemented based on these policies.

In light of the potential impact on the stock liquidity and market price for our shares, we approached four major shareholders, Effissimo Capital Management Pte Ltd. (hereinafter referred to as "Effissimo"), Mizuho Bank, Ltd. (hereinafter referred to as "MHBK"), Tokio Marine

• Nichido Fire Insurance Co., Ltd. (hereinafter referred to as "TMNF") and Kawasaki Heavy Industries, Ltd. (hereinafter referred to as "KHI") to seek their participation in the share buyback transaction. After making our request regarding "K" LINE's plan to buy back as disclosed in the timely disclosure on May 7, 2024, we confirmed Effissimo's, MHBK's, TMNF's and KHI's intention to sell their "K" LINE stock in quantities roughly corresponding to their respective holding ratios as of May 7, 2024 (percentages of shares, etc. held) with respect to the total number of "K" LINE shares to be acquired by the Company. (In the case of Effissimo, this includes stock held through the fund it manages.)

This arrangement should mitigate the potential impact on the stock liquidity and market price of "K" LINE's shares to some extent. We have also determined that it would be beneficial for us and our shareholders to give shareholders other than Effissimo, MHBK, TMNF and KHI the opportunity to sell their shares back to the Company on the stock exchange. Therefore, we also decided and implemented to acquire "K" LINE stock as follows.

2. Details of repurchase:

1. Class of share: Common stock of "K" LINE
2. Number of shares repurchased: 16,865,700 shares

	KAWASAKI KISEN KAISHA, LTD.
ｻｽﾃﾅﾋﾞﾘﾃｨ・環境経営推進・IR・広報ｸﾞﾙｰﾌﾟ	Corporate Sustainability, Environment
	Management, IR and Communication Group

N E W S L E T T E R

(2.4% of the total number of shares of common stock outstanding excluding treasury stock)

1. Total amount: 37,011,778,650 yen (2,194.5 yen per share)
2. Period: May 9, 2024
3. Repurchase method: Purchase on the Tokyo Stock Exchange through off-auction own share repurchase trading (ToSTNeT-3)

(Note) As part of the current buyback of "K" LINE shares, the Company has received notice from shareholders Effissimo, MHBK, TMNF and KHI that they have sold us "K" LINE stock in quantities roughly corresponding to their respective holding ratios as of May 7, 2024 (percentages of shares, etc. held) with respect to the total number of "K" LINE shares to be acquired by the Company in section [Reference] as below. (In the case of Effissimo, this includes stock held through the fund it manages.)

[Reference]

Details of stock repurchase resolved at the meeting of the Board of Directors (disclosed on May 7, 2024)

1. Class of share: Common stock of "K" LINE
2. Total number of shares of common stock to be repurchased: Up to 39,556,000 shares
   (5.5 ％ of the total number of shares of common stock outstanding excluding treasury stock)
3. Total amount: Up to 100,000,000,000 yen
4. Period: From May 8, 2024 to July 31, 2024
5. Repurchase method: Purchase on the Tokyo Stock Exchange through off-auction own share repurchase trading (ToSTNeT-3) and Auction market on Tokyo Stock Exchange

At the meeting of the Board of Directors held on May 7, 2024, "K" LINE resolved to purchase shares using the method described in [Reference] section as above. The transaction was executed today using the TSE's Off-Auction Own Share Repurchase Trading system (ToSTNeT- 3). However, the number of shares acquired and the total acquisition value did not reach the maximum total number of shares to be acquired and the maximum total acquisition value of shares as stated in the Board of Directors' resolution. Therefore, after today, we plan to continue repurchasing our own stock on the Tokyo Stock Exchange, up to the total maximum number and value concerned during the repurchase period described in section [Reference] as above.

	KAWASAKI KISEN KAISHA, LTD.
ｻｽﾃﾅﾋﾞﾘﾃｨ・環境経営推進・IR・広報ｸﾞﾙｰﾌﾟ	Corporate Sustainability, Environment
	Management, IR and Communication Group

N E W S L E T T E R

For further information, please contact:

Masaya Futakuchi

General Manager, General Affairs Group

Tel: [phone]

Kawasaki Kisen Kaisha, Ltd. ("K" LINE)

"K" LINE's website URL:https://www.kline.co.jp/en/index.html

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 depending on various factors such as future developments in the business environment.

	KAWASAKI KISEN KAISHA, LTD.
ｻｽﾃﾅﾋﾞﾘﾃｨ・環境経営推進・IR・広報ｸﾞﾙｰﾌﾟ	Corporate Sustainability, Environment
	Management, IR and Communication Group