Interim report
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Company name: Kawasaki Kisen Kaisha, Ltd. Listing: Prime Market of Tokyo Stock Exchange Securities code: 9107 URL: https://www.kline.co.jp/en/ Representative: Takenori Igarashi, Director, Representative Executive Officer, President & CEO Inquiries: Yuji Fujimura, General Manager, Corporate Sustainability, Environment Management, IR and Communication Group Telephone: +81-3-6865-2736 Scheduled date to commence dividend payments: - Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for Analysts) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Operating revenues Operating income (loss) Ordinary income (loss) Profit (loss) attributable to owners of the parent Million yen % Million yen % Million yen % Million yen % Three months ended June 30, 2025 244,918 (8.5) 19,842 (35.4) 21,684 (71.0) 29,947 (58.7) Three months ended June 30, 2024 267,609 21.2 30,717 58.3 74,846 58.6 72,543 96.7 Note: Comprehensive income for the three months ended June 30, 2025: ¥ (6,265)million [-%] For the three months ended June 30, 2024: ¥ 148,274million [13.9%] Profit (loss) per share Profit (loss) per share-fully diluted Yen Yen Three months ended June 30, 2025 47.40 - Three months ended June 30, 2024 104.67 - August 4, 2025 Financial Highlights for 1st Quarter FY2025 (Under Japanese GAAP) (Unaudited) (Amounts rounded down to the nearest million yen) 1. Consolidated financial results for the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) - 1 -
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Total assets Net assets Shareholders’equity ratio Million yen Million yen % As of June 30, 2025 2,179,862 1,653,185 74.2 As of March 31, 2025 2,210,049 1,677,449 74.6 As of June 30, 2025: ¥ 1,616,656million As of March 31, 2025: ¥ 1,648,434million Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Year ended March 31, 2025 - 50.00 - 50.00 100.00 Year ending March 31, 2026 - Year ending March 31, 2026 (Forecast) 60.00 - 60.00 120.00 (Percentages indicate year-on-year changes.) Operating revenues Operating income (loss) Ordinary income (loss) Profit (loss) attributable to owners of the parent Profit (loss) per share Million yen % Million yen % Million yen % Million yen % Yen Cumulative second quarter ending September 30, 2025 489,500 (9.0) 46,500 (23.9) 67,000 (64.2) 74,000 (59.6) 117.11 Year ending March 31, 2026 968,000 (7.6) 90,000 (12.5) 120,000 (61.1) 115,000 (62.3) 181.96 (2) Consolidated financial position Reference: Shareholders’equity 2. Dividends *Revision to the forecast of dividends most recently announced: None 3. Consolidated Financial Results Forecast for the Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026) *Revision to Consolidated Financial Forecasts most recently announced: Yes - 2 -
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Newly included: 1 company (KLKG Logistics Holdings, Co., Ltd.) Excluded: None As of June 30, 2025 639,172,067 shares As of March 31, 2025 639,172,067 shares As of June 30, 2025 7,077,834 shares As of March 31, 2025 7,511,366 shares Three months ended June 30, 2025 631,769,213 shares Three months ended June 30, 2024 693,062,964 shares 4. Notes (1) Significant changes in the scope of consolidation during the quarter period: Yes (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement (ⅰ) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ⅱ) Changes in accounting policies due to other reasons: None (ⅲ) Changes in accounting estimates: None (ⅳ) Restatement: None (4) Number of issued shares (common shares) (ⅰ) Total number of issued shares at the end of the period (including treasury shares) (ⅱ) Number of treasury shares at the end of the period (ⅲ) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) *Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None *Assumption for the forecast of consolidated financial results for the year ending March 31, 2026 The forecast is based on currently available information that KLINE deems to be reasonable. Actual results may differ from the forecast as a result of various factors. Refer to “5. Qualitative Information on Quarterly Financial Results (3) Description of Information on Future Outlook, Including Forecast of Consolidated Financial Results” for assumptions related to the forecast. - 3 -
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(Billion yen) Three months ended June 30, 2024 Three months ended June 30, 2025 Change % Change Operating revenues 267.6 244.9 (22.6) (8.5%) Operating income (loss) 30.7 19.8 (10.8) (35.4%) Ordinary income (loss) 74.8 21.6 (53.1) (71.0%) Profit (loss) attributable to owners of the parent 72.5 29.9 (42.5) (58.7%) Exchange Rate (¥/US$) (3-month average) 155.02 145.32 (9.70) (6.3%) Fuel oil price (US$/MT) (3-month average) 629 550 (79) (12.6%) (Billion yen) Three months ended June 30, 2024 Three months ended June 30, 2025 Change % Change Dry bulk Operating revenues 88.3 69.7 (18.6) (21.1%) Segment profit (loss) 7.1 (0.5) (7.6) -% Energy resource transport Operating revenues 25.6 23.6 (2.0) (8.1%) Segment profit (loss) 1.0 2.3 1.3 125.4% Product logistics Operating revenues 151.1 148.9 (2.1) (1.4%) Segment profit (loss) 65.4 24.3 (41.0) (62.8%) Other Operating revenues 2.4 2.6 0.1 6.2% Segment profit (loss) 0.4 0.3 (0.1) (20.6%) Adjustments and eliminations Segment profit (loss) 0.7 (4.8) (5.6) -% Total Operating revenues 267.6 244.9 (22.6) (8.5%) Segment profit (loss) 74.8 21.6 (53.1) (71.0%) 5. Qualitative Information on Quarterly Financial Results (1) Description of Operating Results The Company recorded 7.2 billion yen of equity in earnings of unconsolidated subsidiaries and affiliates for the consolidated cumulative first quarter of this fiscal year and OCEAN NETWORK EXPRESS PTE. LTD. (hereinafter referred to as "ONE") accounted for 3.6 billion yen of this amount. Performance per segment was as follows. Since the beginning of this fiscal year, the Company changed the allocation method of a part of Non-operating income and Non-operating expenses to present the condition of each segment in a more appropriate manner. Segment information in the first quarter of both fiscal year 2025 and 2024 are presented based on the changed allocation method. - 4 -
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(i) Dry Bulk Segment Dry Bulk Business In the Cape-size sector, although the cargo movement of iron ore and bauxite stayed firm, market rates temporarily softened due to accidents and labor disputes at some loading ports. Market rates temporarily showed a rapid recovery in June, 2025, following the increase in the shipment of iron ore from the major production areas but then started to decline again toward the end of June. In the medium-small vessel sector, while there were signs of steady cargo movement of grains and steel products, market rates remained weak due to the sluggish movement of coal shipment. Under these circumstances, the Group focused on managing the market exposures appropriately, reducing operating costs, and improving vessel operation efficiency. The overall Dry Bulk Segment recorded a year-on-year decrease in revenue and recorded a loss. (ⅱ) Energy Resource Transport Segment LNG Carrier, Liquefied Gas Carrier Business, Electricity Business, Crude Oil and Product Business, and Energy Business Strategy Concerning LNG carriers, LPG carriers, thermal coal carriers, large crude oil tankers (VLCCs), drillship, FPSO (Floating Production, Storage and Offloading system) and others, the business stayed firm for mid- and long-term charter contracts and contributed to securing stable profit. The overall Energy Resource Transport Segment recorded a year-on-year decrease in revenue due to influences such as exchange rates but recorded an increase in profit as a result of the elimination of temporary factors. (ⅲ) Product Logistics Segment Car Carrier Business In the global car sales market, market rates generally stayed firm, supported by solid demand in various countries, despite the imposition of additional tariffs on cars exported to the United States. In addition, although the situation in the Middle East remained tense, there were no major disruptions to vessel operations, and the Group continued its efforts to improve vessel operation efficiency. Logistics Business In the domestic logistics and port business, the container handling volume increased year-on-year. Both the work volume in the towage business and the handling volume in the warehousing business stayed firm. As for the international logistics sector, there was concern about the impact of the U.S. tariff policies, but the demand for ocean and air transportation generally remained strong, in particular for semiconductors and automobiles. In the finished car transportation business, new car sales in Australia, a key factor influencing cargo volume at Australian ports, remained at a high level, and both transportation and storage volumes stayed firm. Short Sea and Coastal Business In the short sea business, the transportation volume increased year-on-year due to the significant increase in the transportation volume of biomass fuel and bulk cargo as well as the increase in the transportation volume of steel products. In the coastal business, although the volume of ferry transportation remained almost flat year-on-year, the overall transportation volume decreased year-on-year due to the slow cargo movement of food products and industrial products such as these by liner transportation. The transportation volume for tramp services increased overall. - 5 -
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Containership Business In the containership business, significant fluctuations in cargo movement and a decline in average freight rates were observed due to the impact of U.S. tariff policies. In April, 2025, advanced shipping demand surged ahead of the imposition of tariffs following an announcement of reciprocal tariffs by the U.S. This was followed by a temporary slowdown in cargo movement. However, in May, 2025, the market regained firmness after the U.S. and China agreed on a 90-day suspension of high tariffs. Each shipping company adjusted vessel supply capacity to manage the fluctuations in cargo movement, which in turn affected cargo movements and freight rates on routes other than those to North America. As a result, the performance of ONE, an equity-method affiliate of the Company, recorded a year-on-year decrease in both revenue and profit. The overall Product Logistics Segment recorded a year-on-year decrease in both revenue and profit. (ⅳ) Other Other includes but not limited to the Group’s ship management service, travel agency service, and real estate rental and administration service. The segment recorded a year-on-year increase in revenue but a decrease in profit. (2) Description of Financial Position Total assets at the end of the consolidated first quarter of this fiscal year were ¥2,179.8 billion, a decrease of ¥30.1 billion from the end of the previous fiscal year as a result of a decrease in investment securities and other factors. Total liabilities decreased by ¥5.9 billion to ¥526.6 billion as a result of a decrease in Long-term loans, less current portion and other factors compared to the end of the previous fiscal year. Total net assets were ¥1,653.1 billion, a decrease of ¥24.2 billion compared to the end of the previous fiscal year as a result of a decrease in foreign currency translation adjustments and other factors. - 6 -
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Prior Forecast Current Forecast Change % Change(at the time of announcement (at the time of announcement of made on May 7, 2025) the 1st quarter result) Operating revenues 476.0 489.5 13.5 2.8% Operating income (loss) 41.0 46.5 5.5 13.4% Ordinary income (loss) 57.5 67.0 9.5 16.5% Profit (loss) attributable to owners of the parent 66.0 74.0 8.0 12.1% Profit (loss) per share (Yen) 104.49 117.11 12.62 Exchange Rate (¥/US$) 141.59 143.46 1.87 1.3% Fuel Oil Price (US$/MT) 573 557 (16) (2.8%) Prior Forecast Current Forecast Change % Change(at the time of announcement (at the time of announcement of made on May 7, 2025) the 1st quarter result) Operating revenues 950.0 968.0 18.0 1.9% Operating income (loss) 80.0 90.0 10.0 12.5% Ordinary income (loss) 105.0 120.0 15.0 14.3% Profit (loss) attributable to owners of the parent 100.0 115.0 15.0 15.0% Profit (loss) per share (Yen) 158.31 181.96 23.65 Exchange Rate (¥/US$) 140.79 141.73 0.94 0.7% Fuel Oil Price (US$/MT) 574 566 (8) (1.4%) (3) Description of Information on Future Outlook, Including Forecast of Consolidated Financial Results (For consolidated cumulative second quarter of the fiscal year 2025) (Billion yen) (For consolidated full fiscal year 2025) (Billion yen) Mainly due to the influences of such as exchange rates, the Company revised estimation of Operating revenues, Operating income (loss), Ordinary income (loss), Profit (loss) attributable to owners of the parent and Profit (loss) per share in the consolidated financial forecast for cumulative second quarter and full of fiscal year ending March 31, 2026, from the previously announced forecasts on May 7, 2025. In the Dry Bulk Segment, despite some concerns, such as the U.S. tariff policies, the uncertainty of the Chinese economy, and the ongoing geopolitical risks in Ukraine and the Middle East, the Group expects that the mid-term vessel demand-supply balance will be tight against the backdrop of limited newbuilt deliveries, with some differences by type of vessel, and that market rates will stay firm overall despite some volatility. The Group will work on increasing vessel operation efficiency and reducing costs, and amid the growing need to deal with environmental issues, taking advantage of its high-quality transportation, the Group will strive to enhance stable sources of revenue by increasing mid- and long-term contracts, and maximize profit, while maintaining appropriate and swift risk control. In the Energy Resource Transport Segment, the Group will continue efforts to secure stable profit as it expects to ensure smooth business operations, supported by mid- and long-term contracts, with respect to LNG carriers, LPG carriers, thermal coal carriers, large crude oil tankers, drillship, FPSO and others. - 7 -
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As for the Product Logistics Segment, in the car carrier business, a decline in automobile demand in the U.S. is anticipated due to the impact of U.S. tariff policies and other factors, and a decrease in seaborne cargo movement to the U.S. is expected as a result. The Group will closely monitor the latest developments and continue efforts to optimize its fleet and improve the efficiency of vessel operation and allocation. In the logistics business, regarding the domestic logistics and port business, the container handling volume is expected to increase year-on-year, resulting from an increase in the volume of cargo from ONE and Chinese shipping companies. The work volume in the towage business and the handling volume in the warehousing business are expected to stay flat year-on-year. As for the international logistics sector, in the forwarding business, the Group expects that demand for ocean and air transportation will stay firm, but it may be affected by market fluctuations due to the U.S. tariff policies and the situation in the Middle East, and uncertainty arising from such fluctuations. In the finished car transportation business, both transportation and storage volumes are expected to stay firm. In the short sea business, the total transportation volume is expected to increase year-on-year due to the increase in the transportation volume of biomass fuel. In the coastal business, the ferry transportation volume is expected to stay flat year-on-year. As for liner transportation, despite the decrease in the transportation volume of paper-related cargo and food and drink products, the Group aims to achieve the total transportation volume at the same level as the previous year by responding to demand in the transportation of steel products and others. In tramp services, the Group anticipates a decrease in demand for the transportation of raw materials by some dedicated vessels due to the decrease in production by steel mills, but expects that the total transportation volume will remain at the same level as the previous year. In the containership business, the business environment remains uncertain due to geopolitical risks stemming from changes in the Middle East situation and the impact of U.S. tariff policies. ONE will keep watching changes in the situation, continue to provide flexible vessel allocation and efficient operations in line with demand, and strive for steady business operations. Our basic policy, positioning the maximization of shareholder value as a key management priority, is to improve corporate value and shareholder profits over the medium and long term by proactively promoting shareholder returns, including share buyback. This is achieved by taking cash flow into consideration and actively promoting investments essential for enhancing corporate value while maintaining strict investment discipline, ensuring both capital efficiency and financial stability necessary to improve our corporate value while being conscious of optimal capital structure. Based on this basic policy, regarding dividend for the current consolidated fiscal year ending March 31, 2026, the Company plans for basic dividend of 40.00 yen and additional dividend of 80.00 yen per share, in total of annual dividend 120.00 yen per share (an interim dividend of 60.00 yen per share and a year-end dividend of 60.00 yen per share), as announced on May 7, 2025. - 8 -
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(Million yen) As of March 31, 2025 As of June 30, 2025 ASSETS Current assets : Cash and deposits 204,716 339,026 Accounts and notes receivable - trade and contract assets 113,917 115,516 Raw materials and supplies 38,308 35,384 Deferred and prepaid expenses 23,848 22,755 Other current assets 23,782 24,477 Allowance for doubtful accounts (1,197) (1,123) Total current assets 403,375 536,036 Non-current assets : (Vessels, property and equipment) Vessels, net 389,939 378,879 Buildings and structures, net 9,455 9,755 Machinery, equipment and vehicles, net 3,144 3,177 Land 15,565 16,022 Construction in progress 63,806 60,057 Other, net 6,755 6,399 Total vessels, property and equipment 488,666 474,291 (Intangible assets) Other intangible assets 7,266 9,381 Total intangible assets 7,266 9,381 (Investments and other assets) Investment securities 1,230,101 1,079,060 Long-term loans receivable 18,051 17,761 Asset for retirement benefits 4,942 5,193 Other investments and other assets 58,946 59,405 Allowance for doubtful accounts (1,302) (1,267) Total investments and other assets 1,310,739 1,160,153 Total non-current assets 1,806,673 1,643,825 Total assets 2,210,049 2,179,862 6. Consolidated Financial Statements Consolidated Balance Sheet - 9 -
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(Million yen) As of March 31, 2025 As of June 30, 2025 LIABILITIES Current liabilities : Accounts and notes payable - trade 69,222 70,017 Short-term loans and current portion of long-term loans 51,412 49,866 Accrued income taxes 6,129 7,300 Provision for loss related to the Anti-Monopoly Act 1,335 1,448 Provision for loss on chartering contracts 3,206 2,407 Other provisions 5,040 2,534 Other current liabilities 69,108 78,487 Total current liabilities 205,455 212,062 Non-current liabilities : Bonds 14,000 14,000 Long-term loans, less current portion 229,840 222,289 Provision for directors’ and other officers’ retirement benefits 37 38 Provision for directors’ stock benefits 2,655 1,900 Provision for periodic dry docking of vessels 17,986 18,689 Liability for retirement benefits 5,150 5,098 Other non-current liabilities 57,473 52,598 Total non-current liabilities 327,144 314,615 Total liabilities 532,599 526,677 NET ASSETS Shareholders’ equity: Common stock 75,457 75,457 Capital surplus 32,495 39,059 Retained earnings 1,248,600 1,246,652 Treasury stock (8,085) (7,689) Total shareholders’ equity 1,348,467 1,353,480 Accumulated other comprehensive income : Net unrealized holding gain (loss) on investment securities 12,991 13,910 Deferred gain (loss) on hedges 3,066 2,808 Revaluation reserve for land 4,576 4,569 Foreign currency translation adjustments 277,190 239,797 Retirement benefits liability adjustments 2,141 2,090 Total accumulated other comprehensive income 299,966 263,175 Non-controlling interests 29,015 36,529 Total net assets 1,677,449 1,653,185 Total liabilities and net assets 2,210,049 2,179,862 Consolidated Balance Sheet - 10 -
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(Million yen) Three months ended June 30, 2024 Three months ended June 30, 2025 Marine transportation and other operating revenues 267,609 244,918 Marine transportation and other operating costs and expenses 218,005 204,704 Gross profit (loss) 49,603 40,213 Selling, general and administrative expenses 18,886 20,371 Operating income (loss) 30,717 19,842 Non-operating income : Interest income 1,086 1,148 Dividend income 813 1,104 Equity in earnings of unconsolidated subsidiaries and affiliates 37,287 7,241 Foreign exchange gains 6,753 － Other non-operating income 601 723 Total non-operating income 46,542 10,217 Non-operating expenses : Interest expenses 1,697 2,239 Foreign exchange losses － 5,706 Other non-operating expenses 714 429 Total non-operating expenses 2,412 8,375 Ordinary income (loss) 74,846 21,684 Extraordinary income : Gain on sales of non-current assets 2,226 6,043 Gain on sales of shares of subsidiaries and associates 0 2,994 Other extraordinary income 15 55 Total extraordinary income 2,242 9,093 Extraordinary losses : Loss on retirement of non-current assets 0 57 Other extraordinary losses － 6 Total extraordinary losses 0 64 Profit (loss) before income taxes 77,088 30,713 Income taxes : Current 3,600 3,204 Deferred 606 (3,079) Total income taxes 4,206 125 Profit (loss) 72,881 30,588 Profit (loss) attributable to non-controlling interests 338 640 Profit (loss) attributable to owners of the parent 72,543 29,947 Consolidated Statement of Operations - 11 -
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(Million yen) Three months ended June 30, 2024 Three months ended June 30, 2025 Profit (loss) 72,881 30,588 Other Comprehensive income : Net unrealized holding gain (loss) on investment securities 438 1,021 Deferred gain (loss) on hedges (14) 360 Foreign currency translation adjustments 7,279 (3,889) Retirement benefits liability adjustments 76 (61) Share of other comprehensive income (loss) of unconsolidated subsidiaries and affiliates accounted for using equity method 67,612 (34,284) Total other comprehensive income 75,393 (36,853) Comprehensive income 148,274 (6,265) (Breakdown) Comprehensive income attributable to owners of parent 147,577 (6,835) Comprehensive income attributable to non-controlling interests 697 570 Consolidated Statement of Comprehensive Income - 12 -
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(Million yen) FY2024 1st quarter (from April 1, 2024 to June 30, 2024) FY2025 1st quarter (from April 1, 2025 to June 30, 2025) Depreciation and Amortization 11,771 12,889 7. Explanatory Notes to Consolidated Financial Statements (Notes Regarding Going Concern Assumption) Not Applicable. (Notes on Significant Changes in Amount of Shareholders’ Equity) Not Applicable. (Notes on the quarterly Consolidated Statement of Cash Flows) The Company does not prepare Consolidated Statement of Cash Flows for the three months ended June 30, 2025. The total amount of Depreciation and Amortization which includes Depreciation and Amortization of Intangible assets is as follows. (Million yen) Dry bulk Energy resource transport Product logistics Other Total Adjustments and eliminations Consolidated Revenues Revenues from contracts with customers 86,168 24,720 150,429 2,423 263,741 - 263,741 Other revenues 2,142 977 717 30 3,867 - 3,867 Operating revenues from customers 88,311 25,697 151,146 2,453 267,609 - 267,609 Inter-group revenues and transfers 19 3 1,150 17,081 18,254 (18,254) - Total revenues 88,330 25,701 152,297 19,535 285,864 (18,254) 267,609 Segment profit (loss) 7,118 1,049 65,406 491 74,065 780 74,846 (Million yen) Dry bulk Energy resource transport Product logistics Other Total Adjustments and eliminations Consolidated Revenues Revenues from contracts with customers 68,699 22,721 148,725 2,573 242,720 - 242,720 Other revenues 1,000 891 274 31 2,197 - 2,197 Operating revenues from customers 69,700 23,613 148,999 2,605 244,918 - 244,918 Inter-group revenues and transfers 16 562 1,389 14,869 16,838 (16,838) - Total revenues 69,717 24,175 150,388 17,475 261,756 (16,838) 244,918 Segment profit (loss) (526) 2,365 24,325 390 26,554 (4,870) 21,684 Segment information Three months ended June 30, 2024 Three months ended June 30, 2025 Since the beginning of this fiscal year, the Company changed the allocation method of a part of Non-operating income and Non-operating expenses to present the condition of each segment in a more appropriate manner. Segment information in the first quarter of both fiscal year 2025 and 2024 are presented based on the changed allocation method. - 13 -