Kawasaki Kisen Kaisha : Financial Highlights for 1st Quarter FY2026

August 4, 2026

(Under Japanese GAAP) (Unaudited)

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, Representative Executive Officer, President & CEO

Inquiries: Ryo Kato, General Manager, Corporate Sustainability, Environment Management, IR and Communication Group

Telephone: +81-3-6890-9620

Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for Analysts)

(Amounts rounded down to the nearest million yen)

1. Consolidated financial results for the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026)
   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
      Three months ended June 30, 2026 Three months ended June 30, 2025	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      	286,842 244,918	17.1 (8.5)	19,581 19,842	(1.3) (35.4)	24,046 21,684	10.9 (71.0)	23,394 29,947	(21.9) (58.7)

      Note: Comprehensive income for the three months ended June 30, 2026:	¥ 42,242 million	[-%]
      For the three months ended June 30, 2025:	¥ (6,265) million	[-%]

      	Profit (loss) per share	Profit (loss) per share-fully diluted
      	Yen	Yen
      Three months ended June 30, 2026	37.42	-
      Three months ended June 30, 2025	47.40	-

   2. Consolidated financial position

   	Total assets	Net assets	Shareholders'equity ratio
   	Million yen	Million yen	%
   As of June 30, 2026	2,289,947	1,777,109	75.9
   As of March 31, 2026	2,343,989	1,841,988	76.9

   Reference: Shareholders'equity

   As of June 30, 2026: ¥ 1,737,394 million

   As of March 31, 2026: ¥ 1,802,703 million

2. Dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   Year ended March 31, 2026 Year ending March 31, 2027	Yen	Yen	Yen	Yen	Yen
   	- -	60.00	-	60.00	120.00
   Year ending March 31, 2027 (Forecast)		60.00	-	60.00	120.00

   *Revision to the forecast of dividends most recently announced: None

3. Consolidated Financial Results Forecast for the Year Ending March 31, 2027 (April 1, 2026 to March 31, 2027)

   (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
   Cumulative second quarter ending September 30, 2026 Year ending March 31, 2027	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
   	574,500 1,070,000	14.8 5.1	42,000 85,000	(2.2) 1.0	80,000 135,000	34.1 23.7	86,000 135,000	25.3 1.5	139.45 220.79

   *Revision to Consolidated Financial Forecasts most recently announced: None

4. Notes

   1. Significant changes in the scope of consolidation during the quarter period: Yes Newly included: 1 company ("K" Line Ship Management Holdings, Ltd.) Excluded: None

   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

      1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

      2. Changes in accounting policies due to other reasons: Yes

      3. Changes in accounting estimates: None

      4. Restatement: None

   4. Number of issued shares (common shares)

      1. Total number of issued shares at the end of the period (including treasury shares)

         As of June 30, 2026	639,172,067 shares
         As of March 31, 2026	639,172,067 shares

      2. Number of treasury shares at the end of the period

         As of June 30, 2026	33,871,539 shares
         As of March 31, 2026	7,077,375 shares

      3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

   Three months ended June 30, 2026	625,230,943 shares
   Three months ended June 30, 2025	631,769,213 shares

   *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, 2027

   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.

5. Qualitative Information on Quarterly Financial Results

(1) Description of Operating Results

(Billion yen)

The Company recorded 2.6 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 1.1 billion yen of this amount.

Performance per segment was as follows.

(Billion yen)

Following the reorganization with the aim of strengthening the Group's in-house ship management structure, ship management service, which was previously included in the "Other", is reclassified into the Dry Bulk segment, the Energy Resource Transport segment and the Product Logistics segment and the "Other", respectively, from the first quarter of the current fiscal year.

In addition, the LNG bunkering business, which was previously included in the Energy Resource Transport segment, has been reclassified to the "Other", in order to present the condition of each segment more appropriately.

Segment information for the first quarter of both fiscal years 2026 and 2025 is presented based on the changed segment classification.

1. Dry Bulk Segment

   Dry Bulk Business

   In the Cape-size sector, market rates stayed firm, thanks to the active cargo movement of iron ore, bauxite, and others.

   In the medium-small vessel sector, market rates were on an upward trend due to the growth in demand for coal transportation caused by the situation in the Middle East and the robust demand for grain transportation.

   Under these circumstances, the Group focused on managing market exposure appropriately, reducing operating costs, and improving vessel operation efficiency.

   The overall Dry Bulk segment recorded a year-on-year increase in revenue and returned to profitability.

2. Energy Resource Transport Segment

   LNG Carrier Business, Crude Oil and LPG Carrier Business, Electricity Business, CCS Business and Offshore Wind Business

   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 operated steadily under mid- and long-term charter contracts and contributed to securing stable profit.

   The overall Energy Resource Transport segment recorded a year-on-year increase in both revenue and profit due to the impacts of market rates, exchange rates, and other related factors.

3. Product Logistics Segment

Car Carrier Business

In the car carrier business, due to port congestion in some areas and the tense situation in the Middle East, the Group was affected by the longer voyage distance and the decline in the fleet capacity utilization rate resulting from transportation through alternate routes, and the increase in fuel costs and other operating costs.

Logistics Business

In the domestic logistics and port business, the container terminal handling volume, the work volume in the towage business, and the handling volume in the warehousing business all stayed firm. As for the international logistics sector, while cargo movement in air transportation in the forwarding business was sluggish for some shipments, such as those related to automobiles, the transportation volume of semiconductors increased year-on-year. As a result, the overall business in this sector generally stayed firm. In the finished car transportation business, new car sales, a key factor influencing cargo volume at Australian ports, stayed at the same level as the previous year, and both transportation and storage volumes remained stable.

Short Sea and Coastal Business

In the short sea business, the overall transportation volume slightly decreased year-on-year, due to the decrease in the transportation of steel products and other cargoes canceling out the increase in the transportation of biomass fuel. In the coastal business, the volume of ferry transportation increased year-on-year for cars and passengers, resulting from the growth in travel demand. As for liner transportation, despite the decline in the number of voyages due to the docking of the vessels for the Shimizu route, the overall transportation volume increased year-on-year, thanks to the acquisition of new cargo on the Hokkaido route. The volume of tramp services remained almost unchanged from the same period of the previous fiscal year.

Containership Business

In the containership business, short-term freight rates increased as supply and demand tightened due to port congestion, in addition to front-loaded shipments and inventory buildup in consumer countries against the backdrop of the situations in the Middle East and rising fuel prices.

On the other hand, as operating costs increased due to factors such as rising fuel prices, the performance of ONE, an equity-method affiliate of the Company, recorded a year-on-year increase in revenue but a decrease in profit.

The overall Product Logistics segment recorded a year-on-year increase in revenue but a decrease in profit.

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