-FY2019 2Q- 31 st Oct 2019 Table of Contents A Market Information - PowerPoint PPT Presentation

Supplementary Report -FY2019 2Q- 31 st Oct 2019

Table of Contents A Market Information & Loading Volume by Business Segment ∎ A-1 ：『 Dry Bulk Carriers 』『 Tankers 』 “Baltic Exchange Dry Index” “World Scale” 1 ∎ A-2 ：『 Car Carriers 』 “Volume” by Loading/Discharging Area 2 B “K” Line Group Fleet Composition ∎ B-1: “K” Line Group Vessels in Operation 3 ∎ B-2: 『 Dry Bulk Carriers 』『 LNG Carriers/Tankers/Thermal Coal Carriers 』 4 『 Offshore Energy E&P Support 』『 Car Carriers 』 ∎ B-3: 『 Short Sea/Coastal Ships 』『 Containerships 』 New Buildings Delivery Schedule 5 Others C ∎ C- 1:“Non - Operating Income and Expenses” “Extraordinary Profits and Losses” 6 ∎ C-2:Performance per Segment 7

A-1 『 Dry Bulk Carriers 』 『 Tankers 』 “Baltic Exchange Dry Index” “World Scale” Baltic Dry Index 3,000 2013 2014 2,000 2015 2016 1,000 2017 2018 2019 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC World Scale VLCC(AG/JPN) 100 2013 75 2014 2015 50 2016 2017 25 2018 2019 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1

A-2 『 Car Carriers 』 “Volume” by Loading/Discharging Area (10,000 Units) 100 99 95 93 91 91 89 88 86 86 84 84 84 84 84 82 82 82 79 82 81 80 82 81 80 78 77 77 75 76 74 73 60 40 20 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2012F 2013F 2014F 2015F 2016F 2017F 2018F 2019F Japan ・ FE/North America Japan ・ FE/Europe Japan ・ FE/The Other Area Trade not From/To Japan ・ FE Trade bound for Japan ・ FE Intra-Europe 2

B-1 “K” Line Group Vessels in Operation "K" Line Group Fleet Composition MAR 2019 209 94 9 90 54 64 520 486 SEP 2019 198 95 8 86 53 46 0 100 200 300 400 500 600 Dry Bulk Carriers LNG Carriers/Tankers/Thermal Coal Carriers Offshore Energy Support Vessels Car Carriers Short Sea and Coastal ships Containerships ” K"LINE Group Vessels in Operation SEP 2019 MAR 2019 Owned Chartered Total Total Type of Vessel No. DWT(MT) No. DWT(MT) No. DWT(MT) No. DWT(MT) Dry Bulk 54 6,645,827 144 18,834,507 198 25,480,334 209 26,423,503 Thermal Coal Carriers 8 703,971 21 1,880,996 29 2,584,967 25 2,207,803 LNG Carriers 46 3,873,775 2 152,272 48 4,026,047 47 3,950,938 Tankers 12 1,956,607 6 891,525 18 2,848,132 22 3,269,333 Offshore Support Veesels 6 29,186 0 - 6 29,186 7 32,481 Drillship 1 - 0 - 1 - 1 - FPSO 1 - 0 - 1 - 1 - Car Carriers 32 491,039 54 922,680 86 1,413,719 90 1,479,845 Short Sea and Coastal ships 25 208,374 28 398,602 53 606,976 54 612,051 Containerships 7 460,448 39 3,621,895 46 4,082,343 64 4,943,047 Total 192 14,369,227 294 26,702,477 486 41,071,704 520 42,919,001 * The number of owned vessels includes co-owned vessels, and deadweight tonnage includes share of other companies' ownership in co-owned vessels. * Includes flagships and spot and/or short term activities at the end of term. 3

B-2 『 Dry Bulk Carriers 』『 LNG Carriers/Tankers/Thermal Coal Carriers 』 『 Offshore Energy E&P Support 』 『 Car Carriers 』 Dry Bulk Carriers LNG Carriers/Tankers/Thermal Coal Carriers MAR 2019 209 47 8 3 1 2 8 25 94 MAR 2019 96 4 55 37 7 10 SEP 2019 48 5 3 0 3 7 29 95 SEP 2019 94 4 51 30 9 10 198 0 20 40 60 80 100 LNG Carriers LPG Carriers 0 50 100 150 200 250 Chemical Tankers Product Tankers Capesize Over-Panamax Panamax AFRAMAX VLCC Handymax Small Handy Chip Thermal Coal Carriers ※The number of LNG Carriers includes 29 vessels owned by SPC of the projects. Car Carriers Offshore Energy E&P Support 9 MAR 2019 1 1 5 2 MAR 2019 90 15 40 14 6 4 4 7 8 SEP 2019 1 1 4 2 86 SEP 2019 15 37 15 4 4 4 7 0 5 10 Drillship 0 20 40 60 80 100 FPSO Platform Supply Vessel 7,000 Units 6,000 Units 5,000 Units 4,000 Units Anchor Handling Tug Supply Vessel 3,000 Units 2,000 Units ～ 2,000 Units 4

B-3 『 Short Sea and Coastal Ships 』 『 Containerships 』 New Building Delivery Schedule New Building Delivery Schedule FY2019 FY2020 FY2021 Short Sea and Coastal Ships Dry Bulk Carriers 3 3 2 MAR 2019 1 23 20 5 54 5 Capesize 3 2 1 Panamax 1 1 Handymax SEP 2019 1 23 19 5 53 5 Small Handy 0 10 20 30 40 50 60 Chip LNG Carriers 0 0 0 Short Sea Coastal Ships Ferry Offshore Support Vessel Tankers 2 0 0 Others VLCC AFRAMAX 2 Containerships LPG Thermal Coal Carriers 5 0 0 MAR 2019 64 Offshore Energy E&P Support Vessels 0 0 0 12 13 8 18 13 Offshore Drillship 46 SEP 2019 12 13 7 7 7 FPSO LNG Bunkering Vessels 0 1 0 0 10 20 30 40 50 60 70 Car Carriers 0 1 0 7500 Units 1 Short Sea and Coastal ships 0 2 0 14,000TEU 8,000TEU 5,500TEU 4,200TEU 1,700TEU Total 10 7 2 5

C-1 “Non - Operating Income and Expenses” “Extraordinary Profits and Losses” Non-Operating Income and Expenses （billion yen） 1Q 2Q 1H Financial Gain/Loss -1.6 -1.6 -3.1 Equity in Gain/Loss of subsidiaries and affiliates 1.4 5.2 6.6 Exchange Gain/Loss -1.4 -0.4 -1.8 Others 0.2 0.4 0.6 Consolidated Total -1.3 3.6 2.3 Extraordinary Profits and Losses 1Q 2Q 1H Gain/Loss on Sales of Fixed Assets 2.1 0.5 2.6 Gain/Loss on Liquidation of Subsidiaries 2.9 -0.2 2.7 Impairment Loss - -0.3 -0.3 Others 0.9 0.1 0.9 Consolidated Total 5.9 0.1 5.9 6

C-2 Performance per Business Segment ※ Current Segment Basis Operating Revenue （million yen） Operating Revenue （million yen） FY2014 FY2015 FY2016 FY2017 FY2017 FY2018 Containership 684,781 622,962 524,082 603,787 Dry Bulk 249,043 273,986 Bulk Shipping 603,724 570,151 458,984 523,940 Offshore Energy Energy Resource Transport 75,415 88,701 35,319 24,656 19,420 7,472 E&P Support & Heavy Lifter Product Logistics 806,689 449,929 Others 86,414 87,225 79,970 82,071 Others 87,018 82,129 Total 1,410,239 1,304,996 1,082,457 1,217,270 Total 1,218,166 894,747 Adjustment △ 57,818 △ 61,063 △ 52,266 △ 55,245 Adjustment △ 56,141 △ 58,015 Consolidated 1,352,421 1,243,932 1,030,191 1,162,025 Consolidated 1,162,025 836,731 Ordinary Income Ordinary Income FY2014 FY2015 FY2016 FY2017 FY2017 FY2018 Containership 20,623 △ 10,049 △ 31,488 3,366 Dry Bulk △ 132 4,441 Bulk Shipping 36,501 24,656 △ 9,476 3,202 Energy Resource Transport 440 2,491 Offshore Energy △ 5,670 △ 6,553 △ 5,119 △ 965 Product Logistics 5,777 △ 49,196 E&P Support & Heavy Lifter Others 3,017 1,124 Others 3,024 1,826 2,518 3,341 Total 9,102 △ 41,139 Total 54,477 9,879 △ 43,566 8,945 Adjustment △ 5,497 △ 6,541 △ 8,822 △ 6,982 Adjustment △ 7,140 △ 7,794 Consolidated 48,981 3,338 △ 52,388 1,962 Consolidated 1,962 △ 48,933 ※From FY2018, We renewed our Business Segment for disclosure as below due to the Integration of Container Shipping Businesses as “Ocean Network Express”. (Old) 「 Containerships 」「 Bulk Shipping 」「 Offshore Energy E&P Support & Heavy Lifter 」 and 「 Others 」 → (Current) 「 Dry Bulk 」「 Energy Resource Transport 」「 Product Logistics 」 and 「 Others 」 “K”LINE Group seek development of customer -oriented new business model and rebuild our business portfolio. 7