Kawasaki Kisen Kaisha, Ltd. · TSE:9107
Kawasaki Kisen Kaisha — Investor Presentation (June 2025)
52 slides from Kawasaki Kisen Kaisha's investor presentation, Jun 3, 2025
Slide 1: Business Briefing
Business Briefing June 3rd, 2025
Slide 2: Agenda
AGENDA Opening Remarks Car Carrier Business Coal & Iron Ore Carrier Business LNG Carrier Business Closing Remarks 1
Slide 3: Initiatives for Medium- to Long-Term Growth
Opening Remarks Todayʼs Key Briefing Points Initiatives for Medium- to Long-Term Growth The medium- to long-term supply-demand outlook remains strong for three “K” Line's own businesses serving the role of driving growth By further enhancing our three key functional strengths̶Safety and Ship Qua
Slide 4: Strengthening Functional Strategies
Opening Remarks Strengthening Functional Strategies By sharpening our focus on Safety and Ship Quality Management, Advancement of Environmental Technologies, and DX, and integrating them into each business, we will expand the domains where our strengths can be leveraged and realize sustainable growt
Slide 5: Business Growth Directions
Opening Remarks Business Growth Directions We are striving for sustainable business growth with an awareness of capital cost by refining our core strengths and expanding in areas where those strengths can be leveraged Accelerated growth through Enhancement of “K” Lineʼs Expansion of business areas p
Slide 6: Earnings Targets
Opening Remarks Earnings Targets Achieve 110.0 billion yen + α in ordinary income from “K” Lineʼs own businesses by 2030 Ordinary income/loss from “K” Lineʼs own businesses* (billion yen) • By combining deeper initiatives within 150.0 “K” Lineʼs own businesses with 110.0+α Dry Bulk partnerships and
Slide 7: Today's Briefing
Opening Remarks Todayʼs Briefing Topics Presenters Representative Executive Officer, President & CEO Opening Remarks Takenori Igarashi Car Carrier Managing Corporate Officer Business Haruhiko Sugimoto Businesses with role of Coal & Iron Ore Senior Managing Corporate Officer driving growth Carrier Bu
Slide 8: Agenda
AGENDA Opening Remarks Car Carrier Business Coal & Iron Ore Carrier Business LNG Carrier Business Closing Remarks 7
Slide 9: Index
Index 1. 2. 3. Market Trends Business Strategy Earnings Forecast & Investment Plan 8
Slide 10: Supply and Demand Balance Outlook
1. Market Trends Supply and Demand Balance Outlook Supply and demand are expected to balance around 2026. On the other hand, the balance between retiring vessels and newbuilds beyond 2030 requires close attention Supply-Demand Outlook for Car Carriers Demand Outlook Demand Supply Retiring vessels •
Slide 11: Overall Strategy for Medium- to Long-Term Growth
2. Business Strategy Overall Strategy for Medium- to Long-Term Growth Growth centered on creating new transportation value through environmental measures by leveraging “K” Lineʼs key functional strengths Key Points for Functional Strategy Business Strategy Creating new transportation Maximize value
Slide 12: Demand Outlook for Environmental Measures and "K" Line Initiatives
2. Business Strategy Demand Outlook for Environmental Measures and “K” Line Initiatives From 2028 onward, low-emission vessels are expected to gain a competitive edge over heavy oil-fueled vessels, accelerating the development of eco-friendly vessels Fleet Composition by Fuel Type in the Market (num
Slide 13: Creating new transportation value through environmental measures
2. Business Strategy Creating new transportation value through environmental measures Proactively building a competitive, eco-friendly vessel fleet ahead of industry competitors to deliver and create new transportation value "K" Lineʼs Strengths Customer Needs Customer Approval • Decarbonization is
Slide 14: KPI Progress and Outlook
2. Business Strategy KPI Progress and Outlook Our growth strategy is progressing smoothly, and we will accelerate growth toward FY30 “K” Lineʼs Transport Composition 1 Eco-friendly Vessels 2 Shipping Network Reorganization Total Transport Volume and ILLUSTRATIVE Transport Volume (FY24 level is base
Slide 15: Future Earnings Outlook
3. Earnings Forecast & Investment Plan Future Earnings Outlook Aiming for a 15% increase in earnings compared to FY24 on the path to FY30 target achievement, mainly driven by earnings growth from the introduction of eco-friendly vessels Net ordinary income* (FY24 level is base 100) 150 Upside Tariff
Slide 16: Future Investment Outlook
3. Earnings Forecast & Investment Plan Future Investment Outlook With our investment plans progressing steadily, we remain committed to building a competitive fleet that will continue to be the vessel of choice for customerse Investment plan and results Fleet development plan Cumulative investment a
Slide 17: Factors Behind FY25 Profit Decline
3. Earnings Forecast & Investment Plan Factors Behind FY25 Profit Decline Although we are working to expand earnings by increasing total units carried and introducing eco-friendly vessels, the earnings forecast before considering tariff impacts has declined slightly due to increases in vessels and o
Slide 18: Changing Geopolitical Situation
3. Earnings Forecast & Investment Plan Changing Geopolitical Situation There is a risk of approximately 13.0 billion yen in reduced earnings due to U.S. tariff policy Overview / Our Assessment / Impacts on and Assumptions Current Situation Response for “K” Lineʼs FY25 Earnings U.S. tariff • As of Ap
Slide 19: Efforts to stabilize earnings against the risk of reduced earnings
3. Earnings Forecast & Investment Plan Efforts to stabilize earnings against the risk of reduced earnings Strengthening earnings base stability through ongoing efforts such as lengthening contract terms and maintaining downward flexibility Preparing for sudden drops Lengthening contract terms in tra
Slide 20: Key Points of Briefing
Key Points of Briefing 1. Supply and demand are expected to balance around 2026. On the other hand, the balance between retiring vessels and newbuilds beyond 2030 requires close attention. 2. Aiming for growth by creating new transport value through environmental measures, “K” Line will also work on
Slide 21: Agenda
AGENDA Opening Remarks Car Carrier Business Coal & Iron Ore Carrier Business LNG Carrier Business Closing Remarks 20
Slide 22: Index
Index 1. 2. 3. Market Trends Business Strategy Earnings Forecast & Investment Plan 21
Slide 23: Supply and Demand Balance Outlook
1. Market Trends Supply and Demand Balance Outlook There have been no major changes in the supply-demand outlook compared to last year, and a tightening of supply and demand is expected in the medium term Marine transport volume forecast (Capesize) Supply forecast (Capesize) New vessel Scrapped Iron
Slide 24: Demand Outlook for Major Customers
1. Market Trends Demand Outlook for Major Customers Demand from Japanese and Korean steel mills as well as major resource companies is expected to remain roughly flat, while demand from Indian and Middle Eastern customers is expected to expand Japanese and Korean steel mills India/Middle East custom
Slide 25: Overview of Business Strategy for Medium- to Long-Term Growth
2. Business Strategy Overview of Business Strategy for Medium- to Long-Term Growth Leveraging our functional strengths, our strategy remains unchanged to aim for maintaining and increasing “K”Line share with key customers through high-quality safe operation systems, environmental technologies, and a
Slide 26: Outlook and Response to Demand for Environmental Measures
2. Business Strategy Outlook and Response to Demand for Environmental Measures Although industry-wide progress on environmental measures is slower than initially expected, we are steadily securing vessel capacity with demand in mind, including transitional period needs Outlook for the Transition to
Slide 27: Initiatives and Outcomes for Key Customers
2. Business Strategy Initiatives and Outcomes for Key Customers “K” Line has earned strong recognition through high-quality safe operation systems, environmental technologies and attentive customer service, and various initiatives are progressing steadily Current initiatives and progress Japanese an
Slide 28: Realize the upside earnings potential through cargo portfolio expansion
2. Business Strategy Realize the upside earnings potential through cargo portfolio expansion Targeting the upside earnings potential by capturing the steadily growing marine transport demand for reduced iron and bauxite Reduced iron Bauxite Marine transport CAGR CAGR demand (ʻ24-ʼ30) (ʻ24-ʼ30) (tons
Slide 29: KPI Progress and Outlook
2. Business Strategy KPI Progress and Outlook Progress on each business KPI is advancing steadily, with the aim of achieving FY26 targets through continued improvement activities Business Strategy Focus measures KPIs FY22 FY23 FY24 FY26 100-110 Maintain and expand Fleet size 102 operational scope (F
Slide 30: Future Earnings Outlook
3. Earnings Forecast & Investment Plan Future Earnings Outlook While working to optimize the balance between cargo and fleet, we aim to achieve earnings expansion through initiatives such as environmental measures and new demand development Net ordinary income* (Base scenario) Net ordinary income (U
Slide 31: Future Investment Outlook
3. Earnings Forecast & Investment Plan Future Investment Outlook While assessing the environmental trends in the industry, we will make appropriate investments in eco-friendly vessels Fleet development plan Key Points • With customers postponing Fleet size (vessels) Heavy oil-fueled Eco-friendly Sho
Slide 32: Changing Geopolitical Situation
3. Earnings Forecast & Investment Plan Changing Geopolitical Situation As we have Short-term limited impacts cargo from U.S. transiting through tariff policies, the U.S., USTR-imposed the business measures, and the impact return offrom Trump Suez tariffs Canal is are safety expected totobe expected
Slide 33: Key Points of Briefing
Key Points of Briefing 1. Leveraging our functional strengths, we remain committed to a strategy centered on environmental measures and close customer engagement to maintain and grow “K”Line share with key customers 2. Although industry-wide progress on environmental measures is slower than initiall
Slide 34: Agenda
AGENDA Opening Remarks Car Carrier Business Coal & Iron Ore Carrier Business LNG Carrier Business Closing Remarks 33
Slide 35: Index
Index 1. 2. 3. Market Trends Business Strategy Earnings Forecast & Investment Plan 34
Slide 36: Global LNG Supply-Demand Outlook
1. Market Trends Global LNG Supply-Demand Outlook Although some projects are seeing delays, global LNG transport demand is expected to grow steadily toward 2040 LNG supply-demand forecast Supply-demand outlook Latest outlook Global LNG trading volume (million tons) • Due to political trends in the U
Slide 37: LNG Supply-Demand Outlook by Region
1. Market Trends LNG Supply-Demand Outlook by Region LNG supply is expected to increase mainly in North America and Qatar, while LNG demand is expected to increase mostly in China and South & Southeast Asia LNG supply forecast by region LNG demand forecast by region LNG supply by region (million ton
Slide 38: Overall Strategy for Medium- to Long-Term Growth
2. Business Strategy Overall Strategy for Medium- to Long-Term Growth Leveraging “K” Line's functional strengths to accumulate projects with existing and new customers and realize the upside earnings potential Key Points for Functional Strategy Business Strategy Maintaining and growing “K”Line share
Slide 39: Business Strategy Progress and Outlook
2. Business Strategy Business Strategy Progress and Outlook We will continue to accumulate projects for existing customers and develop new customers, aiming for a 100-vessel fleet over the medium to long term LNG Carriers of “K” Line Number of vessels in fleet LNG Carrier Company Ranking (as of Marc
Slide 40: Major Contract Acquisition Results
2. Business Strategy Major Contract Acquisition Results Secured a long-term contract in India, one of the company's focus regions, accelerating expansion plans in India and other broader Asia Future goals Current position Looking to expand overall liquefied gas transport by leveraging the “K” Lineʼs
Slide 41: Realizing the upside earnings potential
2. Business Strategy Realizing the upside earnings potential We will further strengthen liquefied gas transport and effective use of vessels with expired contracts, based on “K” Lineʼs functional strengths Maximizing LNG carrier lifetime earnings by repurposing carriers as FSUs *1 or FSRUs *2, 1 Eff
Slide 42: Utilization of Vessels After Contract Expiration
2. Business Strategy 1 Utilization of Vessels After Contract Expiration We will maximize lifetime earnings by expanding options and flexibility in how LNG carriers are utilized after long-term contracts expire Utilization Strategy for LNG Carriers after Long-Term Contract Expiry Contract period Afte
Slide 43: Expanding Liquified CO2 Transport
2. Business Strategy 2 Expanding Liquified CO2 Transport We are steadily making progress on liquefied CO2 transport, where demand is expected to grow, with the aim of securing follow-on projects Demand Forecast Business Strategy Progress and Outlook Carbon levies planned under Start of worldʼs first
Slide 44: Strengthening Other Liquefied Gas Transport (LPG, Ethane, and Ammonia etc.)
2. Business Strategy 2 Strengthening Other Liquefied Gas Transport (LPG, Ethane, and Ammonia etc.) Focus on further enhancing transport of other liquefied gases, which are expected to see market growth and contribute to decarbonization of society Demand Forecast Outlook LPG Marine Transport Volume (
Slide 45: KPI Progress in LNG Carrier Business
2. Business Strategy KPI Progress in LNG Carrier Business Making steady progress across five KPIs set for the three phases of Project Acquisition, Construction, and Operation Project Construction Operation acquisition Acquisition of Deliver high-quality vessels long-term Provision of high-quality se
Slide 46: Future Earnings Outlook
3. Earnings Forecast & Investment Plan Future Earnings Outlook Aiming for growth outpacing market expansion toward FY2030, with efforts to realize further upside earnings potential Market size LNG transport business net ordinary income* (base scenario) Indicator (FY23 level is base 100) Number of ve
Slide 47: Future Investment Outlook
3. Earnings Forecast & Investment Plan Future Investment Outlook Although investment cash flow during the current Medium-Term Management Plan period has declined, the projected number of vessels by FY30 remains unchanged Investment Plan for LNG Carrier Business Factors impacting change in investment
Slide 48: Changing Geopolitical Situation
3. Earnings Forecast & Investment Plan Changing Geopolitical Situation As our operations are primarily based on medium- to long-term contracts, short-term downside risk from geopolitical developments is limited Overview / Our Assessment / Impacts on and Assumptions Current Situation Response for “K”
Slide 49: Key Points of Briefing
Key Points of Briefing 1. Solid medium- to long-term growth is expected for LNG transport demand 2. “K” Line aims to maintain and grow share with existing customers while acquiring new customers, leveraging its key functional strengths 3. We aim to realize upside potential by effectively utilizing L
Slide 50: Agenda
AGENDA Opening Remarks Car Carrier Business Coal & Iron Ore Carrier Business LNG Carrier Business Closing Remarks 49
Slide 51: Closing Remarks: Key Points of Briefing
Closing Remarks Key Points of Briefing In “K” Lineʼs own businesses, we aim to generate ordinary 1 income of 110.0 billion yen + α by 2030, the earnings target announced with the FY23 financial report To achieve 110.0 billion yen in recurring profit, “K” Line will leverage its three functional stren
Slide 52: Disclaimer
【Disclaimer】 Information contained in this material is provided solely for informational purposes and is not an offer or a solicitation of an offer to buy or sell securities. You are requested to make investment decisions using your own judgment. 【Forward-looking statements】 This material contains f
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