ＩＮＤＥＸ　　 ◆◇◆◇◆◇

　　　1. Management Plan and Improvement of Business Structure 　3-5. Emerging Markets (China) ① Grain Transportation Driven by China (Soy Bean) P21　1-1. 　2012 April "K"Line Vision 100 "Bridge to the Future" ② Trade Trends for China

①Review of the Medium-term Management Plan P1 ③ Energy Consumption in China

②Missions for Medium-term Management Plan ④ Per Capita GDP by Province in China

③Target for Financial Indices ⑤ Economic gap between Urban and Rural Areas

④Trends of Business Performance (P/L) P2 4. Bulk Carrier Business⑤Improvement in Financial Position 　4-1. 　"K"Line Fleet ① "K"Line Dry Bulk Fleet P22

⑥Segment-wise Performance ② "K"Line Energy Transportation Fleet

⑦Fleet Upgrading Plan and Investment P3 ③ Ship Price as of Placing Order (Same as 3-2-①)

⑧Investment CF ④ Number of LNG Carriers

⑨New Buildings (Results and Plan) 　4-2. 　Demand on Dry Bulk ① Transition of Crude Steel Production P23

　1-2. 　History of Management Plans P4-5 ② Global Main Trades of Coal P24

　1-3. 　Trends of Financial Indices ①Net Income and Dividend per Share P6 ③ World Coal Consumption

②Consolidated ROE/ROA ④ Iron Ore Import into Major Asian Countries

③Consolidated Assets Turnover ⑤ Iron Ore Stocks at Chinese Ports

④Consolidated EV/EBITDA ⑥ Port Congestion in Australia

⑤Operating Cash Flow 5. Car Carrier Business⑥Consolidated Interest Coverage Ratio 　5-1. 　Fleet and Cargo Movements ① "K"Line PCC Fleet P25

　1-4. 　Effort for Structural Reform ①Exchange rate and No. of Japanese Seafarers P7 ② Cars/Trucks Transported by Our Fleet

②Exchange rate and K"Line Employee ③ Total Cars/Trucks Exported from Japan

③Operating Revenues and Ordinary Income 　5-2. 　Demand on Vehicles ① World Automobile Production (2012) P26

④Our Fleet Scale ② No. of Vehicles Possessed (Cars/1,000 People)

　1-5. 　Current Business Composition ①Revenues, Ordinary Income P8 ③ Transition of Overseas Production by Japanese Automakers

②Fleet Composition & Division/Segment-wise Revenues ④ Car Production and Sales in USA

　　　2. Comparison to Major Shipping Companies ⑤ Monthly Automobile Export Volume from Japan　2-1. 　Fleet-scale Ranking ① Major Container Carriers P9 ⑥ Car Ocean Transport Volume by Loading Country P27

② Containership Asia-N.America Loading Volume ⑦ Construction Sales in World Main Area③ Revenue and Margin level of each carriers in 1Q 2014 6. Containership Business④ Historical Top 20 Container Carriers P10 　6-1. 　Fleet and Cargo Volume ① "K"Line Containership Fleet P28

⑤ Trade Share Breakdown by Carrier/Alliance ② "K"Line Average Freight/Volume for All Routes

⑥ Transition of Alliances for Containership P11 ③ "K"Line Volume & Share for Asia-N.America/Europe

⑦ Cape-size Bulker Fleet P12 ④ "K"Line/Market Volume and L/F for Asia-N.America/Europe P29

⑧ Panamax Bulker Fleet 　6-2. 　Container Terminal Operated by "K"Line P30

⑨ Handymax Bulker Fleet 　6-3. 　Cargo Movements ① Container Cargo Movements P31

⑩ Dry Bulker(All Types) Fleet ② Asia=>N.America/Europe Cargo Volume by Country

⑪ PCTC Operated P13 　6-4. 　Handling Volume by Port ① Container Handling Volume in Asia P32

⑫ LNG Fleet (Managed) ② Top 10 Ports for 2013 Container Handling

⑬ Heavy Lifter Owned ③ Transition of Container Handling among Major Ports in Asia

⑭ Containership Fleet ④ Asia-N.America Trade Trends by Commodity

　　　3. World Market 　6-5. 　Factory of the World, Asia ① Procuction by Country P33　3-1. 　Fleet Scale by Vessel-type/Age ① Dry Bulk Carriers by Vessel-type/Age P14 　6-6. 　Large Containership ① Deliveries of Large Containerships in the industry

② PCC by Vessel-type/Age P15 ② Large Containerships Fleet and Orderbook③ Oil Tankers by Vessel-type/Age 7. New Businesses④ Containerships by Vessel-type/Age P16 7-1. Business Target of our Energy Transportation Division P34

　3-2. 　Trend of Newbuildings ① Ship Price as of Placing Order P17 7-2. New Business Expansion ① Heavy Lifter Business P35

② Dry Bulker and Tanker Market ② Offshore Support Vessel Business P36

③ World Newbuilding Orders ③ Drillship Business P37

④ World Newbuilding Work In Progress 8. Financial Data P38⑤ World Newbuilding Delivery 9. Panama Canal Expansion Program P39⑥ World Total Existing Tonnage 10. Northern Sea Route P40⑦ Dry Bulker Scrap P18 11. "K"Line Overview⑧ Oil Tanker Scrap 　11-1 　"K"Line Corporate Governance System P41

⑨ Scrap Metal Prices 　11-2 　Safety in Navigation and Cargo Operations P42

⑩ Scrap History by Vessel-type 　11-3 　Enviroment Preservation P43

　3-3. 　Global Cargo Movement ① Global Cargo Movements P19 　11-4 　Approach to Ballast Water Management P44

② Dry Bulk Market 　11-5 　Regulation for Exhaust Gas and Emission Control Area (ECA) P45③ Tanker Market 　11-6 　Brief History P46

④ China Containerized Freight Index (CCFI) History 　11-7 　Certification by Third-party Organization & Information on Convertible Bonds/Ratings P47

　3-4. Latest Economic Trends ① Key Economic Indicators for North America P20 　11-8 　Corporate Principles and Charter of Conduct P48

② Real GDP Growth 12. Tonnage Tax P49③ Mining and Industrial Output Growth (%) 13. IR Policy P50④ Iron Ore Import of China and Japan 14. Shareholder Composition⑤ Steel Export and Import of China

⑥ Sales of Automobiles

　◇◆◇◆◇◆

1-1. April 2012 ”K" Line Vision100 -Bridge to the Future　-

April 2008 “Ｋ”LINE Vision 100 This medium-term management plan was established against a backdrop of growing marine transport demand resulting from global economic growth, focusing on the mid-2010s, while also extending its outlook to encompass K" Line's centennial anniversary in 2019. The theme of the plan was “synergy for all and sustainable growth.”

January 2010 “Ｋ”LINE Vision 100 KV2010 This plan was established as an emergency measure in response to the financial recession led by the collapse of Lehman Brothers in September 2008, and the vastly different business environment it produced.

April 2011 “Ｋ”LINE Vision100 - New Challenges - In response to changes in market structures including energy demand increase, the rise of emerging countries, etc. a new medium-term management plan based on the “K” LINE Vision 100 was adopted to expand stable earning and achieve sustainable growth.

April 2012 “Ｋ”LINE Vision100 - Bridge to the Future - Under such circumstances as supply pressure of new vessel capacity, fuel oil hike, further rise of yen, damage by the Great East Japan Earthquake, etc. , in response to opaquie business situation including market flactuation, by means of structural reform, we aim to increase stable profit, and change into constitution strong enough not to be over affected by market flactuation.

1

① Review of the Medium-Term Management Plan "K" LINE Vision 100

③ Updated Target for Financial Indicies as of April 2012 As of April 2014

②Updated Missions for our Medium-term Management Plan

（Billion yen、％）

Result(A)OriginalPlan(B)

(A)-(B) Result(A)OriginalPlan(B)

(A)-(B) Estimate(A)OriginalPlan(B)

(A)-(B)

Operating Revenues 1,134.8 1,120.0 14.8 1,224.1 1,070.0 154.1 1,230.0 1,110.0 120.0Ordinary Income 28.6 12.0 16.6 32.5 39.0 ▲ 6.5 34.0 60.0 ▲ 26.0Net Income 10.7 11.0 ▲ 0.3 16.6 25.0 ▲ 8.4 18.0 42.0 ▲ 24.0EBITDA 104.8 100.0 4.8 90.5 110.0 ▲ 19.5 89.0 135.0 ▲ 46.0Shareholder's Equity 340.6 260.0 80.6 388.8 280.0 108.8 404.0 330.0 74.0Operating CF 59.8 67.0 ▲ 7.2 88.2 90.0 ▲ 1.8 68.0 113.0 ▲ 45.0Investment CF ▲ 27.2 ▲ 50.0 22.8 ▲ 5.1 ▲ 50.0 44.9 ▲ 50.0 ▲ 50.0 0.0DER 185% 223% ▲38% 166% 193% ▲27% 136% 148% ▲ 12%NET DER 137% 186% ▲48% 105% 158% ▲53% 97% 119% ▲ 22%Equity Ratio 28.9% 23.4% 5.4% 31.0% 25.7% 5.3% 34.3% 30.3% 4.0%Interest-bering Debt 629.9 580.0 49.9 643.8 540.0 103.8 546.7 490.0 56.7ROA 2.5% 1.1% 1.4% 2.7% 3.5% ▲ 0.9% 2.8% 5.5% ▲ 2.7%ROE* 3.7% － － 4.6% － － 4.5% － －

82 80 2 100 80 20 100 80 20

671 720 ▲ 49 626 650 ▲ 24 621 650 ▲ 29

　Cape （US$/Day) 7,350 18,750 ▲ 11,400 17,300 23,000 ▲ 5,700 21,000 25,000 ▲ 4,000

　PMAX （US$/Day) 7,575 13,500 ▲ 5,925 10,400 17,000 ▲ 6,600 15,000 20,000 ▲ 5,000

　HMAX （US$/Day) 9,250 13,500 ▲ 4,250 11,200 15,000 ▲ 3,800 13,000 18,000 ▲ 5,000

　Small （US$/Day) 7,800 10,750 ▲ 2,950 8,400 12,000 ▲ 3,600 9,500 14,000 ▲ 4,500

Dry

T/C

Averag

e

Exchange Rate （\/US$)

Fuel Oil Price （US$/MT)

2012F 2013F 2014F

Assumptions

out of reach

achieved

※ Under present mid-term management plan, ROE targets were not announced officially

④　 Trends of Business Performance (P/L) ⑥ Segment-wise Performance

(Fiscal Year) '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13

Exchange Rate (Yen/US$) 125 108 99 96 113 123 128 112 110 125 122 114 107 113 117 115 101 93 86 79 82 100 ※from FY2012, segmentation was reformed

Fuel Price (US$/MT) 99 83 99 108 118 104 76 117 158 134 161 170 192 286 319 407 504 407 489 672 671 626

2

-80

-60

-40

-20

0

20

40

60

80

100

120

140

-800

-600

-400

-200

0

200

400

600

800

1,000

1,200

1,400

billion yen billion yen

④ Trends of Business Performance (P/L) Operating RevenuesOperating IncomeOrdinary IncomeNet Income

Target 10 K.R.Plan K.R.PhaseⅡ

New K-21

KV-Plan

"K" Line Vision 2008

"K" Line Vision 2008+

"K" LINE Vision 100

KV2010

New Challenges

0%

100%

200%

300%

400%

500%

600%

700%

0

100

200

300

400

500

600

700

billion yen Equity Ratio indicated ｘ10↓

⑤ Improvement in Financial Position

Interest Bearing Debt Shareholders' EquityEquity Ratio(x10) DER

below 95%

above 40%

Bridge to the Future

as of April 2014 （after reformation)※

as of April 2012 Unit FY2011 FY2012 FY2013 FY2014

Operating revenues （billion yen） 396 460 460 460

Ordinary income or loss （billion yen） ▲42 ▲3 10 15

Operating revenues （billion yen） 464 530 500 520

Ordinary income or loss （billion yen） ▲9 12 26 42

Operating revenues （billion yen） 113 130 110 130

Ordinary income or loss （billion yen） 7 7 6 7

Operating revenues （billion yen） 0 0 0 0

Ordinary income or loss （billion yen） ▲5 ▲4 ▲3 ▲4

Operating revenues （billion yen） 972 1,120 1,070 1,110

Ordinary income or loss （billion yen） ▲49 12 39 60

Exchange rate （\/US$） 79 80 80 80Bunker Price （US$/MT） 672 720 650 650T/C Average

CAPE （US$/Day） 15,350 18,750 23,000 25,000PMAX （US$/Day） 12,325 13,500 17,000 20,000HMAX （US$/Day） 13,225 13,500 15,000 18,000Small （US$/Day） 10,075 10,750 12,000 14,000

Assumptions

Total

Container Ships

Non-ContainerShips

Others

Adjustment andEliminations

1-1. April 2012 "K"Line Vision 100 - Bridge to the Future

⑨　New Buildings (Results and Plan) (as of July 2014)

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013FY2014

PlanFY2015

PlanFY2016

Plan

Ｃontainerships 5 5 6 4 6 13 11 6 4 0 1 4 01,700TEU 0 0 3 3 4 0 0 0 0 0 0 02,400TEU 0 0 0 1 3 1 0 0 0 0 0 03,500TEU 3 0 0 0 4 0 0 0 0 0 0 04,500TEU 2 3 0 0 0 7 5 0 0 0 0 06,400TEU 0 0 0 0 0 3 0 0 0 0 0 08,000TEU 0 3 1 2 2 0 1 4 0 1 4 0

Dry Bulk 5 19 22 10 16 20 16 34 25 23 9 10 1Capesize 3 8 9 2 6 9 8 18 14 5 2 1 0Panamax 2 3 4 4 0 6 3 4 1 8 4 5 0Handymax 5 4 2 2 1 4 7 5 5 1 1 0SmallHandy 1 2 1 4 2 0 3 3 2 1 1 0Chip/Pulp 0 1 0 3 0 0 0 1 0 0 0 0Corona 2 2 1 1 2 1 2 1 3 1 2 1

Car Carriers 3 6 8 5 4 8 7 6 4 3 1 4 42,000units 2 2 0 0 1 1 0 0 0 0 0 03,800units 0 2 1 0 1 0 0 0 0 0 0 04,000units 1 2 0 0 0 2 1 1 0 0 0 05,000units 3 1 0 0 3 0 0 2 0 0 0 06,000units 2 1 4 4 3 4 5 1 3 1 0 07,500units 0 0 0 0 0 0 0 0 0 0 4 4

LNG 2 4 2 2 14 1 0 0 0 0 0 1 3Tankers 3 1 4 3 4 4 0 1 1 1 1 0 0

VLCC 0 1 1 0 3 0 0 0 0 0 0 0AFRAMAX 1 1 0 2 0 0 0 0 0 0 0 0LRⅡ 0 2 0 1 1 0 0 0 0 0 0 0LPG 0 0 0 0 1 0 0CHEMICAL 0 0 2 1 0 0 1 1 1 0 0 0

Energy New Biz 0 3 4 0 0 0 0 0　 Offshore 3 3 0 0 0 0 0

⑧　Investment CF (billion yen) Drillship 0 1 0 0 0 0 0Heavy Lifters 0 0 0 1 3 0 2 0 0 0 0 0 0

Original Plan (Apr.'12) Short Sea etc. 0 1 5 2 2 0 1 1 3 2 1 1 1Updated (Apr.'13) Total 18 36 47 27 49 46 40 52 37 29 13 20 9Previous Plan (Apr.'11)

50.0FY2012

80.0 65.0 -

FY2014

50.083.283.2

95.0

50.0 50.0FY2013

27.2 50.0

FY2011

Container 80 Container 66

Dry Bulk Carrier 236

Dry Bulk Carrier 279

PCTC 97PCTC 93

Energy Resource 77

Energy Resource 77

Heavy Lifter/Coastal

/Ferry/Other 68

Heavy Lifter/Coastal

/Ferry/Other 69

0

100

200

300

400

500

600

March 12 March 14

Total 584Total 558

3

⑦ 【Fleet Upgrading Plan and Investment 】 In Mid-term Management Plan (as of April 2012)

(unit: vessels)

Fleet Size DevelopmentFY2011

Deliveries

Nbr ofVessels at

end ofFY2011

FY2012Deliveries

FY2013Deliveries

FY2014Deliveries

FY2012-FY2014Deliveries

Nbr ofVessels at

end ofFY2014

Container Ship Business 6 80 4 0 0 4 66

Dry Bulk Carrier Business 34 236 23 25 11 59 279

Car Carrier Business 6 97 2 0 0 2 93

Energy Transportation Business 5 77 1 1 1 3 77

Heavy Lifer / Others 1 68 3 0 0 3 69

Total 52 558 33 26 12 71 584（Showing vessels whose investment is decided only）

Only the number of newbuildings is indicated in this table. (vessels returned or sold etc. is not reflected)

as of April 2012 as of July 2014

1-2. History of Management Plans

Plan name Subjects RemarksNov.1982 Emergency Plan for Strengthening 1st theme: profitability improvement plan Radical improvement in operational structure was targetted,

- the Corporate Foundation 2nd theme: efforts to modernize and increase the efficiency of operational systems feared continued simultaneous slump in three sales division and yen rising.Aug.1983 ("K" Plan) First Stage 3rd theme: a cost-cutting campaign carried out with the participation of all personnel

Emergency Plan for Strengthening Reconstruction of system to implement "K"plan, mainly for above 2nd theme (Reference-in June 1983, the Head Office was relocated to current location ) - the Corporate Foundation Promotion of office automation、Improvement in business procedure, Cost reduction etc

Mar.1984 ("K" Plan) Second StageApr.1984 Intermediate-term Operational 1) Emergency Measures (disposal of uneconomical ships, establishment land-based and marine personnel plan.) Aimed to establish the capability to resume dividend payment.

Improvement Plan 2) Reinforcement of operational capabilities (development of an internationally competitive fleet, (A part of this plan was named Enhancement of cost control, Promotion of new business） (However, Plaza Accord in 1985 drastically rose yen to 150 yen per one U.S. dollar,

- New "K" Plan.) 3) Augmentaton of financial measures and the U.S. Shipping Act of 1984 made container freight fall significantly. 4) Modernization and increasing the efficiency of operational organization (streamlining of land-based Our losses were expanded.) operations, reorganization and utilization of an information systems)

Mar.1987 5)Promotion of safe vessel navigation and cost reduction Apr.1987 Emergency Ratiolization Plan 1) Disposal of uneconomical ships

2) Make the organization more efficient and streamlined. (inc. spinning off our subsidiaries)3) Slashing of both of land and sea workforth with intoroduction of a special retirement policy. Almost all targets completed on schedule.

- In F97 dividend paid after 15 year absenseMar.1998Apr.1998 New"K"Line Spirit for 21(New K-21) - Standing firm in our basic policy of pursuit of profitability while trying to expand scale of business, and Aiming to make containership division move into the black, which was not achieved in K.R.PhaseII.

*In '00, raised the numerical targets continuing stable payment of dividends Positive management plan for the first time in many years.- *Completed a year ahead of - To expand shipping-based logistics business globally with customer-oriented attitude, and to aim at a corporate =>Most targets achieved, though 9.11changed conditions at all.

Mar.2002 schedule as most targets achieved group which is soild, and fully commited to challenge with courage.Apr.2002 KV-Plan 1. Further enhancing of Company’s overall organization through cost reductions and profitable use of IT, etc. Reconstruction of containership business-"Cost Slash 300"

2. Reinforcement of globalization firmly based on regional communities and pursuit of business synergy among business sectors. （Total 30 bln. yen cost reduction plan: 15 bln. is from deployment of larger ships）- 3. Initiate stronger efforts to implement logistics business. In F03 (ends Mar. '04) most of final targets inc. numerical ones were atatined a year ahead of schedule.

4. Persuit of technical innovations in marine transport, perfection of safety in navigation and cargo operations, =>"K"Line Vision 2008*Completed a year ahead of and further contribution to environmental preservation.

Mar.2004 schedule as most targets achieved 5. Strengthening of corporate governance aiming at more transparency and greater effectiveness in management. 4

1-2. History of Management Plans

Apr.2004 "K"LINE Vision 2008 1.Ensuring a stable profitability structure through reinforcing our business base Set a vision for F08, to regard the period from now to F09, our 90th anniversary, as a runway.- -Sustainable Growth and Establish- 2.Creation of a high-level, refined and more matured culture of the "K" Line Group with materialization of As profit targets, set F04, 05 estimation & F08 vision

ment of a Stable Profitability Structure- dreams and upgrading of the "K" Line Brand Fulfilled most final numerical goals in F05/fuel price hike=>2008+Mar.2006 （Completed as most targets achieved) 3.Reinforcement of corporate governance and response to risk managementApr.2006 "K"LINE　Vision 2008+ -Measures to support systematic expansion of business scale (new target) F06 targets NOT achieved due to container freight drop

- -Sustainable Growth and Establish- - Response to changes in business enviroments (new target) F07 resuts exceeded most targets for F08 in the plan due to dry bulk market hike and ment of a Stable Profitability Structure- containership freigt restoration, & conditions change => "K"Line Vision 100

Mar.2008 （Completed as most targets achieved) Apr.2008 "K"Line Vision 100 1. Activities to promote environmental protection　　

- Themes: Synergy for All 2. Stable safety ship operation administration structure The plan based on what we will be like in 2019 when we celebrate our 100th anniversary.Mar.2012 and Sustainable Growth 3. Borderless management through the best and strongest organization

+ 4. Strategic investment and proper allocation of management resources Detailed targets are set for 4years fom 2008F to 2011FImage for 2019 5. Improvement of corporate value and complete risk managementJan.2010 "K"Line Vision 100 KV2010 (In addition to above 5 basic themes, new 3 missions as follows) ○Basic Strategies

- Themes: Synergy for All 1. FY2010:move into the black and early resumption of dividends 1. Strengthening make up of containership businessMar.2013 + and Sustainable Growth(Continue) 2. Expansion of stable earnings base and sustainable growth 2. Restructuring business portfolioMid of 2010's 3. Improvement and strengthening of financial make up 3. Adaptation to business environment fluctuations and strengthening of financial baseApr. 2011 "K"Line Vision 100 KV2010 (In addition to above 5 basic themes in the KV 100) Financial results in FY 2010 exceeded initial plans. However, there may be effects from the recent earthquake - -New Challenges - 1. Expansion of a stable earnings base and sustainable growth and there are still many uncertain elements. In response to changes in market structures including energy supply Mar.2014+ 2. Strategic investment in response to changes in market structures and increase in demand and demand and the emergence of developing countries, a new medium-term management plan based on the

- Investment in creation of a flexible fleet and in new businesses “K” LINE Vision 100 was adopted to expand stable earning and achieve sustainable growth.Mid of 2010's - Ongoing measures for improvement and strengthening of financial makeup Apr. 2012 "K"Line Vision 100 KV2010 (In addition to above 5 basic themes in the KV 100) For FY 2011, the containership and dry bulk markets have deteriorated markedly, and the Great East Japan Earthquake, the yen - Bridge to the Future 1. Generate ordinary income in FY2012 appreciation, and rising fuel oil prices resulted in the Company reporting a net loss. In response to these developments, theMar.2015+ 2. Build a stable earnings structure "K" Line Group adopted a newly reformed medium-term management plan with three priority tasks. By means of structuralMid of 2010's 3. Reinforce financial standing reform, we aim to increase stable profit, and change into constitution strong enough not to be over affected by market flactuation.

5

1-2. Trends of Financial Indices in Recent Years

6

0 0 0 0 0 3 3 4 5 3 5 10 16.5 18 18

26

13.5 0

9.5 0

2.5 4.5

▲ 120

▲ 90

▲ 60

▲ 30

0

30

60

90

120

150

▲ 80

▲ 60

▲ 40

▲ 20

0

20

40

60

80

100

92F93F94F95F96F97F98F99F00F01F02F03F04F05F06F07F08F09F10F11F12F13F

yen/share billion yen ① Net Income and Dividend per Share

Net IncomeNet Income per ShareDividend per Share

▲ 30%

▲ 20%

▲ 10%

0%

10%

20%

30%

40%

▲ 80

▲ 40

0

40

80

120

92F93F94F95F96F97F98F99F00F01F02F03F04F05F06F07F08F09F10F11F12F13F

billion yen ② Consolidated ROE, ROA

Net Income ROE ROA

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

0

200

400

600

800

1000

1200

1400

92F93F94F95F96F97F98F99F00F01F02F03F04F05F06F07F08F09F10F11F12F13F

billion yen ③ Consolidated Assets Turnover

Operating Revenues

Assets Turnover

▲ 20

0

20

40

60

80

100

▲ 50

0

50

100

150

200

92F 93F 94F 95F 96F 97F 98F 99F 00F 01F 02F 03F 04F 05F 06F 07F 08F 09F 10F 11F 12F 13F

billion yen ④ Consolidated EV, EBITDA

EBITDA EV/EBITDA

▲ 80

▲ 60

▲ 40

▲ 20

0

20

40

60

80

100

120

140

92F93F94F95F96F97F98F99F00F01F02F03F04F05F06F07F08F09F10F11F12F13F

billion yen ⑤ Operating Cash Flow

Net Income

Operating Cash Flow

▲ 15

▲ 10

▲ 5

0

5

10

15

20

25

30

35

▲ 60

▲ 10

40

90

140

92F93F94F95F96F97F98F99F00F01F02F03F04F05F06F07F08F09F10F11F12F13F

billion yen ⑥ Consolidated Interest Coverage Ratio

Operating Income

Interest Coverage Ratio

1-4. Effort for Structural Reform and Business Scale Expansion

▲ 70

▲ 50

▲ 30

▲ 10

10

30

50

70

90

110

130

(700)

(500)

(300)

(100)

100

300

500

700

900

1,100

1,300

（Ordinary Income（Bln.

Yen）） （Operating Revenues （Bln. Yen）) ③Operating Revenues and Ordinary Income

(Consol) Operating Revenues

(Consol) Ordinary Income

0

50

100

150

200

250

300

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

① Exchange Rate and No. of Japanese Seafarer

Japanese Seafarer for Overseas Shipping

Exchange Rate (\/$)

7

0

50

100

150

200

250

300

350

400

450

500

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

(Exchange Rate) (No. of Employee ② Exchange Rate and "K"Line Employee

Consolidated Group Employee(Non-Consolidated) Employee on Sea(Non-Consolidated) Employee on LandExchange Rate (\/$)

0

100

200

300

400

500

600

700

800（Fleet (No. of Vessels, 100,000 Tons)) ④ Our Fleet-Scale

(Non-Consol) Operating Fleet (Tons)

(Non-Consol) No. of Operating Vessels

(Consol) No. of Operating Vessels

(Consol) Operating Fleet (Tons)

1-5. Current Business Composition

①　Operating Revenues, Ordinary Income　

Business Division FY2005 FY2006 FY2007 FY2008 FY2009 FY2009 FY2010 FY2011 FY2011 FY2012 FY2013Operating Revenues 451.4 503.5 599.8 530.1 364.0 358.5 445.0 395.5 463.0 552.8 582.4Ordinary Income 30.5 ▲ 7.8 4.7 ▲ 37.3 ▲ 67.0 ▲ 65.6 29.0 ▲ 41.8 ▲ 39.7 6.6 ▲ 0.1Operating Revenues 468.4 615.8 609.1 394.8 393.1 447.1 463.5 443.1 502.6 572.7Ordinary Income 66.0 115.3 92.9 ▲ 2.9 1.1 17.0 ▲ 8.6 ▲ 0.0 24.1 41.3Operating Revenues 20.4 35.7 32.8Ordinary Income ▲ 8.6 ▲ 2.4 ▲ 4.5Operating Revenues 489.4 113.6 115.4 105.2 79.3 86.4 93.0 113.3 45.8 43.7 36.2Ordinary Income 58.1 5.7 5.9 4.4 3.7 2.3 4.7 6.6 4.1 6.6 2.6Operating Revenues － － － － － －Ordinary Income ▲ 4.1 ▲ 3.4 ▲ 5.2 ▲ 4.7 ▲ 6.3 ▲ 6.8Operating Revenues 940.8 1,085.5 1,331.0 1,244.3 838.0 838.0 985.1 972.3 972.3 1,134.8 1,224.1Ordinary Income 88.6 63.9 125.9 60.0 ▲ 66.3 ▲ 66.3 47.4 ▲ 49.0 ▲ 49.0 28.6 32.5

　　

ContainershipBusinessBulk ShippingBusiness

Others

Total

Adjustment

Offshore EnergyE&P Support &Heavy Lifter

Containe

rship

Business

, 582.4

Bulk

Shipping

Business

, 572.7

Offshore

Energy

E&P

Support

& Heavy

Lifter,

32.8

0

200

400

600

800

1,000

1,200

Fleet Composition

Containership Business

※ For FY2005, we had disclosed our total results in two 'division's: Containership Business and Others ※ ～FY 2009, we disclosed in three divisions: 'Containership Business' 'Other Marine Business' and 'Others' ※ 'Bulk Shipping Business' in new categories introduced from FY2010 is almost same as 'Other Marine Business' in the previous categories ※ From FY2012, 'Offshore Energy E & P Support & Heavy Lifter' division is carved out from the former 'Bulk Shipping Businesss 'division, and logistics business included in the 'Others' is transfered to 'Containership Business'.

Total 1,224.1 bln. yen

Marine Transportation

Logistics/Harbour

Transportation Other

Containership Business

Bulk Shipping Business

Offshore Energy

E&P Support &

Heavy Lifter

8

Bulk Shipping Business

Offshore Energy E&P Support & Heavy Lifter

（unit: billion yen）

※New Segment （Starting from FY 12 1Q disclosure) Containership Business: containership , port , logistics businesses Bulk Shipping Business: dry bulk, PCC, LNG, oil tanker, coastal & ferry (operated by Kawasaki Kinkai Kisen) businesses Offshore Energy E&P Support & Heavy Lifter: marine energy resorce development, offshore support, heavy lifter businesses Others: ship management, inter-group businesses, etc. Adjustment (no change): ship management business, administration costs not to be distributed to each segement, etc.

【FY2013 Consolidated Operating

segement change segement change

② Fleet Composition and Division/Segment-wise Revenues

2. Comparison to Major Shipping Companies

①　Major Container Carriers

Top 18 Container Carriers Ranked by Operating Capacity （TEU)

1 (1) APM-Maersk 1,453 10.5%

1 (1) Mediterranean Shg Co 2,473,405 429,448 2,902,853 16.6% 14.3% 2 (2) Evergreen 1,337 9.7%

2 (2) MSC (Mediterranean Shg C) 1,578,337 371,036 1,949,373 11.1% 9.6% 3 (3) Hanjin 1,124 8.1%

3 (3) Evergreen Line 882,348 246,224 1,128,572 6.5% 5.5% 4 (4) APL(NOL) 1,044 7.5%

4 (4) COSCO Container Lines 785,129 73,772 858,901 4.9% 4.2% 5 (7) COSCO 934 6.7%

5 (5) Hapag-Lloyd 764,671 0 764,671 4.4% 3.8% 6 (6) CMA-CGM 913 6.6%

6 (6) CSCL(China Shipping) 649,170 115,072 764,242 4.4% 3.8% 7 (5) MSC 870 6.3%

7 (9) Hanjin Shipping 603,739 60,720 664,459 3.8% 3.3% 8 (8) Hyundai M.M 798 5.8%

8 (8) APL 568,272 9,200 577,472 3.3% 2.8% 9 (9) K-Line 769 5.6%

9 (7) MOL 567,453 115,344 682,797 3.9% 3.4% 10 (10) Yang　Ming 688 5.0% 　

10 (10) OOCL 510,578 35,552 546,130 3.1% 2.7% 11 (11) CSCL 677 4.9%

11 (11) NYK Line 494,458 112,000 606,458 3.5% 3.0% 12 (14) MOL 626 4.5%

12 (13) Hamburg Süd Group 490,053 117,616 607,669 3.5% 3.0% 13 (12) OOCL 618 4.5%

13 (12) Yang Ming Marine 407,448 224,646 632,094 3.6% 3.1% 14 (13) NYK 588 4.2%

14 (14) Hyundai M.M. 390,635 73,154 463,789 2.7% 2.3% 15 (15) Hapag-Lloyd 529 3.8%

15 (17) K Line 359,865 69,350 429,215 2.5% 2.1% *( ) is ranking for previous year16 (16) PIL (Pacific Int. Line) 355,090 42,779 397,869 2.3% 2.0% Source: Japan Maritime Center (as of June 2014）17 (15) Zim 346,977 0 346,977 2.0% 1.7%18 (18) UASC 298,415 271,760 570,175 3.3% 2.8% 13838.147

Alliance Operating On Order Total Prev. Total YoY Alliance Cargo Share1 MSC&CMA CGM 2,460,685 617,260 3,077,945 17.6% 15.1% 1 CKYHE 4,852 35%2 G6 (GA+TNWA) 3,296,067 564,934 3,861,001 22.1% 19.0% 2 G6 (GA+TNWA) 4,201 30%3 CKYHE 3,038,529 198,905 3,237,434 18.5% 15.9% 3 MSC&CMA CGM 1,783 13%4 Mediterranean Shg Co 2,473,405 429,448 2,902,853 16.6% 14.3% 4 Maersk 1,453 11%

Alliance Operating On Order Total Share(ope) Share（ｔｔｌ) Alliance Cargo Share1 2M (MSK&MSC) 4,051,742 800,484 4,852,226 27.7% 23.8% 1 CKYHE 4,852 35%2 G6 (GA+TNWA) 3,296,067 345,250 3,641,317 20.8% 17.9% 2 G6 (GA+TNWA) 4,201 30%3 CKYHE 3,038,529 674,712 3,713,241 21.2% 18.2% 3 2M (MSK&MSC) 2,323 17%

RankRank

Rank * OperatorCargo

Loaded Share

Rank

Prev. Total YoYOperator Operating Orderbook TotalRank*

Rank

9

0 500 1,000 1,500 2,000 2,500 3,000 3,500

Mediterranean Shg CoMSC (Mediterranean Shg C)

Evergreen LineCOSCO Container Lines

Hapag-LloydCSCL(China Shipping)

Hanjin ShippingAPLMOL

OOCLNYK Line

Hamburg Süd GroupYang Ming Marine

Hyundai M.M.K Line

PIL (Pacific Int. Line)Zim

UASC

1,000 (TEU)

Operating Orderbook

2,000 4,000 6,000

MSC&CMA CGM

G6 (GA+TNWA)

CKYHE

Mediterranean Shg Co

1,000(TEU) Alliance-wise Operating and Newbuilding Delivery

OperatingOn Order

0 300 600 900 1,200 1,500

APM-Maersk

Evergreen

Hanjin

APL(NOL)

COSCO

CMA-CGM

MSC

Hyundai M.M

K-Line

Yang Ming

CSCL

MOL

OOCL

NYK

Hapag-Lloyd

1,000TEU ② Containership Asia-N.America Loading Volume

Top 15 Carriers

Source:ALPHALINER Weekly Newsletter Volume 2014 Issue 22

③ Revenue and Margin level of each carriers in 1st quarter of 2014 (Jan-Mar 2014)

　　　　　2. Comparison to Major Shipping Companies

④　Historical Top 20 Container Carriers Ranked by Operating Full Containership Capacity (From 1983, biyearly)

Rank '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '131 HAPAG EVERGREEN EVERGREEN EVERGREEN EVERGREEN MAERSK MAERSK MAERSK MAERSK/SL MAERSK MAERSK MAERSK MAERSK MAERSK MAERSK MAERSK2 SEA-LAND USL MAERSK MAERSK MAERSK EVERGREEN SEA-LAND SEA-LAND EVERGREEN P&ON MSC MSC MSC MSC MSC MSC3 MAERSK MAERSK NYK SEA-LAND SEA-LAND SEA-LAND EVERGREEN P&ON P&ON EVERGREEN P&O/FARREL EVERGREEN CMA CGM CMA CGM CMA CGM CMA CGM4 OCL SEA-LAND APL APL NYK NYK COSCO EVERGREEN HANJIN/SEN HANJIN EVERGREEN CMA CGM/ANL EVERGREEN COSCO COSCO EVERGREEN5 NYK HAPAG YANGMING NYK COSCO COSCO NYK COSCO MSC MSC HANJIN/SEN HAPAG HAPAG APL HAPAG COSCO6 OOCL OCL SEA-LAND COSCO APL P&OCL P&OCL HANJIN COSCO APL(NOL) COSCO HANJIN/SEN CSCL HANJIN EVERGREEN HAPAG7 APL NYK HAPAG OOCL MOL HANJIN NEDLLOYD NOL/APL NOL(APL) COSCO APL(NOL) COSCO COSCO EVERGREEN APL APL8 NEDLLOYD OOCL OOCL HAPAG OOCL "K"LINE HANJIN MSC NYK/TSK CP SHIPS CMA CGM/ANL CSCL NYK HAPAG CSAV HANJIN9 EVERGREEN "K"LINE P&OCL "K"LINE HAPAG NEDLLOYD MOL NYK CMA/CGM NYK "K"LINE APL(NOL) APL(NOL) CSCL HANJIN CSCL

10 UASC APL "K"LINE YANGMING HANJIN HAPAG APL HMM CP CMA CGM NYK NYK HANJIN NYK CSCL MOL11 MOL MOL MOL HANJIN "K"LINE APL HAPAG MOL ZIM MOL CP SHIPS MOL OOCL ZIM MOL OOCL12 USL COSCO COSCO MOL YANGMING YANGMING DSR-SENATOR ZIM MOL OOCL MOL OOCL "K"LINE "K"LINE OOCL H-SUD13 YANGMING NEDLLOYD NEDLLOYD P&OCL P&OCL MOL "K"LINE YMTC "K"LINE "K"LINE ZIM CSAV MOL MOL NYK NYK14 CGM UASC ZIM NEDLLOYD NOL NOL OOCL OOCL HMM ZIM OOCL "K"LINE ZIM OOCL H-SUD YANGMING15 ZIM CGM HANJIN ZIM ZIM OOCL YANGMING "K"LINE OOCL HL HAPAG ZIM YANGMING YANGMING YANGMING PIL16 "K"LINE ZIM CGM NOL SCANDUTCH ZIM NOL HL YMTC HMM YANGMING YANGMING CSAV H-SUD ZIM "K"LINE17 BALTIC YANGMING UASC CGM UASC HYUNDAI HMM DSR-SENATOR HL UASC CSCL H-SUD H-SUD CSAV "K"LINE HMM18 W.WILHELMSEN W.WILHELMSEN NOL UASC NEDLLOYD UASC ZIM CMA UASC YANGMING HMM HMM HMM HMM HMM ZIM19 NOL BALTIC BSC W.WILHELMSEN CHO YANG CGM CMA WAN HAI CSAV CSCL H-SUD PIL PIL PIL PIL UASC20 COSCO NOL W.WILHELMSEN BSC CGM CHO YANG MSC CONTSIP CHO YANG H-SUD CSAV WAN HAI LINES WAN HAI LINES UASC UASC CSAV

(Area-wise Number of Companies)U.S.A 3 3 2 2 2 2 2 1 0 0 0 0 0 0 0 0Europe 7 7 7 7 6 5 7 6 5 6 6 5 5 5 5 5Japan 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3Asia* 5 5 6 6 7 8 7 9 8 8 8 10 10 9 9 9Others 2 2 2 2 2 2 1 1 4 3 2 2 2 3 3 3

GA+TNWA⇒G６MSC＋CMA-CGM

*Excluding Japan CKYH+EVERGREEN

1. Top 20 as of '83: U.S.A.: 3, Europe: 7, Japan: 3 , Asia (other than Japan) : 5, Others 2 4. Time-series Major Events '96 P&O and NEDLLOYD merged. 'P&O NEDLLOYD' (P&ON) formed. '07:U.S.A.: 0, Europe: 5, Japan: 3, Asia (other than Japan): 10, Others: 2 '84 U.S. Shipping Act 1984 effective '97 NOL acquired APL (No. of American carriers : 2=>1)

U.S. carriers went away, and Asian shipping companies increased '85 Plaza Accord '99 MEARSK acquired SEALAND (American carriers disappeared) In '09, due to global economic crisis, larger movements among middle-ranking companies. '86 US Line busted. (No. of American carriers : 3=>2) '04 MAERSK acquired P&O N

2. The number of European operators reduced, but through M&As after '95, business scale of each was enlarged. 'Emergency Employment Measure' introduced '05 Hapag Lloyd acquired CP Ship3. No. of Japanese Containership Operators: '88 Kaizoshin** Asia-N.America route Working Group's report issued '08 World Economic Crisis ('Lehman Shock' in September)

until '87 6 Showa Line withdrew, and NLＳ established'88 4 (No. of Japanese carriers: 6=>4) ** Council for Rationalization of Shipping and Shipbuilding Industries'91 3 '91 NYK acquired NLS*** (No. of Japanese carriers: 4=>3) Data: Containerisation International Yearbook etc.

*** Joint Venture for containership business spun out of 'Yamashita Shinnihon' and 'Japan Line'.

10

'84 US Shipping Act 1984

'86 US Line busted '86 HANJIN ranked in '86 'Emergency Employment Measure'

'88 Showa Line withdrew '88 NLS established （Japanese 6=>4） '88 'Kaizoshin** Asia-N.America route WG's report issued

'91 NYK acquired NLS*** （Japanese 4=>3）

'92 HYUNDAI ranked in

'96 'CKYH' alliance formed '96 P&O and Nedlloyd merged '97 NOL acquired APL '97 HANJIN acquired majority

'99 MAERSK acquired SEALAND （Americans went away)

'00 China Shipping ranked in '04 MAERSK acquired P&ON '05 HAPAG acquired CP SHIPS

'11 Restructuring and consolidation of Alliance

FE-Europe Capacity Share by Carrier/Alliance

FE-North America Capacity Share by Carrier/Alliance

⑤ Trade Share Breakdown by Carrier/Alliance (Data:Alphaliner) Asia Europe Trade Share Breakdown by Alliance (Data:Alphaliner)

2-1. Fleet-scale Ranking

⑥ Transition of Alliance for Containership Business

1996 1997 1998 1999 2000 2001 2002 　(2003) 2004 2005 2006 　(2007-8) 2009 2010 2011 　(2012) 2013 2014

Maersk Maersk Maersk Maersk-SL Maersk-SL Maersk-SL Maersk-SL Maersk-SL Maersk(P&ONL) Maersk Maersk Maersk Maersk Maersk Maersk

Sea-Land Sea-Land Sea-Land

CMA CMA CMA CMA CMA-CGM CMA-CGM CMA-CGM CMA-CGM CMA-CGM CMA-CGM CMA-CGM CMA-CGM CMA-CGM CMA-CGM

Norasia Norasia

MSC MSC

Norasia Norasia MSC MSC MSC MSC MSC MSC MSC MSC MSC MSC MSC MSC MSC

HMM

HMMＣＫＹＨ CKYHE

COSCO COSCO COSCO COSCO COSCO COSCO COSCO COSCO COSCO COSCO COSCO COSCO COSCO COSCO COSCO

K-Line K-Line K-Line K-Line K-Line K-Line K-Line K-Line K-Line K-Line K-Line K-Line K-Line K-Line

K-Line Yangming Yangming Yangming Yangming Yangming Yangming Yangming Yangming Yangming Yangming Yangming Yangming Yangming Yangming

Yangming Hanjin-Senator Hanjin-Senator Hanjin-Senator Hanjin-Senator Hanjin Hanjin Hanjin Hanjin Hanjin

Evergreen Evergreen Evergreen Evergreen/LT Evergreen/LT Evergreen/LT Evergreen/LT Evergreen/LT Evergreen/LT Evergreen/IM Evergreen Evergreen Evergreen Evergreen Evergreen

LT LT LT

CSCL CSCL CSCL CSCL CSCL CSCL CSCL CSCL CSCL CSCL

NYK NYK NYK NYK NYK NYK NYK NYK MISC MISC

Hapag-Lloyd Hapag-Lloyd Hapag-Lloyd Hapag-Lloyd Hapag-Lloyd Hapag-Lloyd Hapag-Lloyd Hapag-Lloyd NYK NYK NYK

NOL NOL P&ONL P&ONL P&ONL P&ONL P&ONL P&ONL Hapag-Lloyd(CP S Hapag-Lloyd Hapag-Lloyd NYK NYK NYK NYK

P&O P&ONL OOCL OOCL OOCL OOCL OOCL OOCL OOCL OOCL OOCL Hapag-Lloyd Hapag-Lloyd Hapag-Lloyd Hapag-Lloyd

MISC MISC MISC MISC MISC MISC MISC MISC MISC OOCL OOCL OOCL OOCL Grand Alliance

CP Ships(Cast） CP Ships(Lykes,CCP Ships(Ivaran, CP Ships CP Ships (TMM,OCCP Ships CP Ships (Italia Line CP Ships The New World Alliance

MOL MOL MOL MOL MOL MOL MOL MOL MOL MOL MOL MOL MOL MOL MOL

APL APL APL(NOL) APL(NOL) APL(NOL) APL(NOL) APL(NOL) APL(NOL) APL(NOL) APL(NOL) APL(NOL) APL(NOL) APL(NOL) APL(NOL) APL(NOL)

Nedlloyd (P&ONL) HMM HMM HMM HMM HMM HMM HMM HMM HMM HMM HMM HMM HMM

OOCL OOCLMISC MISC

CSAV CSAV CSAV CSAV CSAV（Norasia) CSAV（Norasia) CSAV（Norasia) CSAV（Norasia) CSAV（Norasia) CSAV（Norasia) CSAV（Norasia) CSAV（Norasia) CSAV（Norasia) CSAV（Norasia) CSAV（Norasia)

DSR-Senator DSR-Senator Hanjin-Senator Hanjin-Senator Hanjin-Senator Hanjin-Senator

Hanjin Hanjin Choyang Choyang Choyang UASC UASC UASC UASC UASC UASC UASC UASC UASC UASC

Choyang Choyang UASC UASC UASC

UASC CMA-CGM

UASC

CSCL

CKYH GA TNWA G6 P3CKYH Green Grand Alliance The New World Alliance

COSCO NYK MOL GA CMA/CGM Maersk"K"Line Hapag Lloyd APL(NOL) + MSC CMA/CGMYangming OOCL Hyunday TNWA MSCHanjin

Alliance CMA/CGM& MSC

Carrier

11

Asia-Europe services, 4 major groups were formed beyond the boundaries of existing alliances. (indicated as above )

Base leading to present alliances formed; Nedloyd⇒P&O, NOL⇒APL, HJ⇒DSR-Snator

Maersk⇒Sealand, CMA⇒CGM, EMC⇒Lloyd Triestino, -a series of M&A

Existing alliances stabilized, new players emerging, CSAV=>Norasia (merged)

Choyang bankruptcy

Start-up new alliance （CKY＋Hanjin)

Maersk ⇒ P&O Nedlloyd acquired

Lloyd Triestino changed the name to Italia Marittima, and then integrated into Evergreen

Ｈapaq-Lloyd was sold to Hamburg Business Group. Senator suspended it's business in Feb.2009

MISC stated withdrawal from GA in May.2009

June 2012 MISC ceased containership business

China authorities rejected " P3 Network" by 3 major liners (under agreement of European Commision) in June 2014. Maersk and MSC are making 2M alliance.

2-1. Fleet-scale Ranking

25

26

28

28

28

31

33

53

63

77

21.2

20.4

23.4

21.7

21.9

23.3

27.3

44.5

53.8

56.1

0 20 40 60 80 100

Mitsui O.S.K. Lines

Diana Shipping Inc.

Safe Bulkers Inc.

Excel Maritime

Carr.

Fredriksen Group

China Shipping

Group

Mitsubishi Corp.

K-Line

Nippon Yusen

Kaisha

COSCO Group

⑧ Panamax Bulker Fleet (Data: Clarkson） 100,000DWT No. of Vessels

24

24

30

31

33

45

48

54

57

62

62.3

50.7

76.3

91.5

55.6

89.2

83.6

106.0

112.3

119.6

0 20 40 60 80 100 120 140

Polaris Shipping Co

NS United K.K.

Berge Bulk Ltd.

Vale

Hanjin Shipping

COSCO Group

Angelicoussis Group

K-Line

Mitsui O.S.K. Lines

Nippon Yusen Kaisha

⑦ Cape-size Bulker Fleet (Data: Clarkson） 100,000DWT No. of Vessels

31

32

35

36

42

46

77

87

106

15.2

17.0

15.4

19.0

18.2

23.6

25.1

41.0

46.1

53.6

0 20 40 60 80 100 120

Sinotrans & CSC

Jinhui Shpg. & Trans

Grieg Shipping A/S

Mitsui O.S.K. Lines

Gearbulk Ltd.

K-Line

Eagle Bulk Shpg.

China Shipping Group

Nippon Yusen Kaisha

COSCO Group

⑨ Handymax Bulker Fleet (Data: Clarkson）

100,000DWT No. of Vessels

27

66

69

75

81

89

147

156

179

248

264

81.0

70.1

49.5

30.8

51.3

161.4

175.9

125.6

230.9

209.5

0 100 200 300

Pan Ocean

Shoei Kisen K.K.

Daiichi Chuo

Pacific Basin Shpg.

Sinotrans & CSC

Mitsui O.S.K. Lines

K-Line

China Shipping Group

Nippon Yusen Kaisha

COSCO Group

⑩Dry Bulker (All Types) Fleet (Data: Clarkson） 100,000DWT

Clarkson July 2014

12

Clarkson July 2014

Clarkson July 2014 Clarkson July 2014

2-1. Fleet-scale Ranking

*SAL is our 100% subsidiary

2

0

4

0

2

0

7

6

0

12

8

13

12

15

8

10

40

0 5 10 15 20 25 30 35 40 45

Ricjners

Jumbo

Combi Lift

Big Lift

Intermarine

Hanza Heavy

SAL (K-Line group)

BBC

⑬ Heavy Lifter Owned

Total No. of All size VesselsNo. of Vessels (500-999 ton)No. of Vessels (1,000-1999 ton)No. of Vessels (Over 2,000 ton)

10

11

13

14

20

27

27

33

44

47

2.7

3.0

3.6

3.8

5.5

7.4

7.4

9.0

12.1

12.9

0 10 20 30 40 50

Exmar

Golar

"K" Line

BW Ｇａｓ

Gaslog

MISC

Teekay Corporation

Nippon Yusen Kaisha

Mitsui O.S.K. Lines

STASCO (Shell

Group)

⑫ LNG Fleet (Managed) Share(%) No. of Vessels

11

17

45

46

50

57

78

79

83

113

43.0

91.0

278.0

184.0

285.0

377.0

414.0

510.0

476.0

650.0

0 100 200 300 400 500 600 700

UECC

NMCC

Hoegh Autoliners

Grimaldi

Glovis

Wallenius Wilhelmsen Logistics

K-Line

Eukor

Mitsui O.S.K. Lines

Nippon Yusen Kaisha

⑪ PCTC Operated 1,000 Cars No. of Vessels

Reserched by "K"Line in March 2014

85

161 69

61

89

106 109

94

111

103

99

136

152

160

190

428

495

575

35

36

36

39

41

49

49

51

57

57

60

65

76

79

88

158

247

272

0 100 200 300 400 500 600 700

ZimPIL

K LineHyundai M.M.

Yang MingHamburg Süd

NYK LineOOCL

MOLAPL

HanjinCSCL

Hapag-LloydCOSCO

Evergreen LineCMA CGM

MSCAPM-Maersk

⑭ Containership Fleet 10,000 TEU No. of Vessels

13

No. of Heavy Lifters with capacity of over 500 ton-

Hesnes The World Car Carrier Fleet, July 2014

Clarkson July 2014 Reserched by "K"Line in Mar 2014

3. World Market

①　Dry Bulk Carriers by Vessel-type/Age

0

300

600

900

1,200

1,500

1,800

2011 2012 2013 2014 2015 2016 2017

Cape (120,000dwt over)

age 25- max

age 25- min

age 20-25

age 15-19

age 10-14

age 5-9

age 0-4

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

Handysize

Handymax

Panamax

Over

Panamax

Capesize

(No. of Vessels）

No. of Dry Bulk Carｒiers age 30-age 25-29

age 20-24

age 15-19

age 10-14

age 5-9

age 0-4

2014 delivery

2015 delivery

2016 delivery

2017 delivery

2018 delivery

-

5

10

15

20

25

30

35

40

0

200

400

600

800

1,000

1,200

1,400Age

Np./10,000tons

Scrapped Dry Bulkers No. of Vessels

10,000Gross Tonnage

Age

0

300

600

900

1200

1500

2011 2012 2013 2014 2015 2016 2017

Over Panamax (80-120,000dwt)

0

300

600

900

1200

1500

1800

2011 2012 2013 2014 2015 2016 2017

Panamax (-80,000dwt)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2011 2012 2013 2014 2015 2016 2017

Handymax

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2011 2012 2013 2014 2015 2016 2017

Handysize

14

Clarkson as of July 2014

**Min/Max are set as follows (ex. Handy/Tankers): - max: all ships over age 25 are in operation continuously.

- min: all ships are scrapped at the age of 25.

Those are same for containership and PCC fleet in following pages. For Handy-size vessels, we assume age 30 or over as borderline. Actually, average life is going up around 30, even in case of dry bulkers. (see below) For tankers please

refer to the page 15.

Data: The Japanese Shipowners' Association

Min/Max* Fleet Increase Schedule

3. World Market

0

1,000

2,000

3,000

4,000

2011 2012 2013 2014 2015 2016

1,000cars PCC (units)

0

200

400

600

800

1000

2012 2013 2014 2015 2016 2017

AFRAMAX

0

100

200

300

400

500

2012 2013 2014 2015 2016 2017

LNG (over 100,000 cbm）

0

100

200

300

400

2012 2013 2014 2015 2016 2017

LRII

0

200

400

600

800

1,000

2012 2013 2014 2015 2016 2017

VLCC

age 25- max

age 25- min

age 20-25

age 15-19

age 10-14

age 5-9

age 0-4

0 100 200 300 400

-3000 cars

3000-4500 cars

4500-6000 cars

6000- cars

（No. of Vessels）

No. of PCC Carriers Unclassified

age 25-

age 20-24

age 15-19

age 10-14

age 5-9

age 0-4

2014 delivery

2015 delivery

2016 delivery

2017 delivery

② PCC by Vessel-type/Age

0

200

400

600

800

1,000

2011 2012 2013 2014 2015 2016

No, of Vessels PCC (No. of Vessels）

age25-max

age 25- min

age 20-24

age 15-19

age 10-14

age 5-9

age 0-4

③ Oil Tankers by Vessel-type/Age

15

Clarkson as of Juｌｙ 2014

Clarkson as of Juｌｙ 2014 （AFRAmax includes product carriers）

0 200 400 600 800 1,000

No.

No.

No.

No.

LN

GLR

II

Afr

amax

VLC

C

(No. of

Vessels）

No. of Oil/Gas Cariers age 30-

age 25-

age 20-24

age 15-19

age 10-14

age 5-9

age 0-4

2014 delivery

2015 delivery

2016 delivery

2017 delivery

2018 delivery

※Min. case for LNG Carriers: Scrapperd at the age of

No. of Vessels

No. of Vessels No. of Vessels

No. of Vessels

3. World Market

④　Containerships by Vessel-type/Age Min/Max*　Fleet Increase Schedule (Estimated)

　　

0

100

200

300

400

500

600

700

0

200

400

600

800

1,000

1,200

1,400

1,600

（No. of vessels） （1,000 TEU) Laid-up Containerships

TEU No of Ships

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

2010 2011 2012 2013 2014 2015 2016 2017

（1,000TEU） Containerships

(Capacity)

0

1,000

2,000

3,000

4,000

5,000

6,000

2010 2011 2012 2013 2014 2015 2016 2017

No. of

Vessels Containerships

(No. of Vessels） age 30- max

age 30- min

age 25-29

age 20-24

age 15-19

age 10-14

age 5-9

age 0-4

0 500 1,000 1,500 2,000 2,500

-1,000 TEU type

1,000-2,999

Panamax 3,000-

post panamax-9,999

10,000TEU over

(No. of Vessels）

Containerships (No. of Vessels) age 30-

age 20-24

age 15-19

age 10-14

age 5-9

age 0-4

2014 delivery

2015 delivery

2016 delivery

2017 delivery

2018ー delivery

0%

5%

10%

15%

20%

25%

0

5,000

10,000

15,000

20,000

25,000

'88'89'90'91'92'93'94'95'96'97'98'99'00'01'02'03'04'05'06'07'08'09'10'11'12'13'14'15'16'17

1,000TEU/Vessel World Containership Increase (Results and Forecasts）

No. of Vesses

Capacity（TEU)

Capacity Increase Ratio

Alphaliner Report 2014 July 16

Clarkson as of July 2014

Source: AXS Marine (as of July 2014）

3-2. Trend of Newbuildings

$0

$40,000

$80,000

$120,000

$160,000

$200,000

$240,000

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

② Dry Bulker & Tanker Market

ＶＬＣＣ AfraCape PanamaxHandy

0

50

100

150

200

250

300

350

400

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Mil. Gross Ton

As of Year-end

④ World Newbuilding Work in Progress

Japan Korea China World Total

１7

0

200

400

600

800

1,000

1,200

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Mil. Gross Ton

Year

⑥ World Total Existing Tonnage

Oil Tanker Bulk Carrier Others

0102030405060708090

100110120

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Mil. Gross Ton

Year

⑤ World Newbuilding Delivery

Japan Korea China World Total

0

30

60

90

120

150

180

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Mil. Gross Ton

Year

③ World Newbuilding Orders

Japan Korea China World Total

0

30

60

90

120

150

180

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14Year

① Ship Price as of Placing Order (Dry Bulkers, Tankers)

ＶＬＣＣ Aframax

Cape Panamax

Handy

3-2. Trend of Newbuildings

0

100

200

300

400

500

600

700

800

900

1000Number of Ships

⑩ Scrap History by Vessel-type

Bulk Carrier Tanker LNG Carrier Containership PCC

18

Clarkson, as of July 14 Data: The Japanese Shipowners' Association 「Kaiun Tokei Youran （2014）」

Clarkson, as of July 14

-

5

10

15

20

25

30

35

40

(50)

150

350

550

750

950

1,150

1,350

199

6199

7199

8199

9200

0200

1200

2200

3200

4200

5200

6200

7200

8200

9201

0201

1

Age

No. of Ships

/10,000GRT

⑦ Dry Bulker Scrap No. of Ships

10,000GRT

Age

0

5

10

15

20

25

30

35

0

200

400

600

800

1000

199

6199

7199

8199

9200

0200

1200

2200

3200

4200

5200

6200

7200

8200

9201

0201

1

No. of Ships

/10,000GRT

⑧ Oil Tanker Scrap No. of Ships10,000GRT

Age Age

$0

$100

$200

$300

$400

$500

$600

⑨Scrap Metal Prices （'95-14)

Tankers Bulk Carriers

1973 4th Middle East War

1997 Asian Currency Crisis

1990 Gulf War

2001 Sept 11

2008 Financial Crisis

1978 Oil Crisis 1975

Reopen Suez Canal

1985

Plaza Agreement

2003 Iraq War

3-3. Global Cargo Movements, Market

0

2,000

4,000

6,000

8,000

10,000

LNG LPG Oil Product Crude Oil Others Container

Minor Bulk Alumina Grain Steam Coal Coking Coal Iron Ore

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

Year

$/day ② Dry Bulk Market (1-year Charter)

Cape-size

Panamax

Handy-max

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

220,000

240,000

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

$/day

Year

③ Tanker Market (Spot)

VLCC

AFRA max

19

Clakson, as of July 2014

Clakson, as of July 14 Clakson, as of July 14

(million tonnes) ① Global Cargo Movements

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

06-0

106

-04

06-0

706

-10

07-0

107

-04

07-0

707

-10

08-0

108

-04

08-0

708

-10

09-0

109

-04

09-0

709

-10

10-0

110

-04

10-0

710

-10

11-0

111

-04

11-0

711

-10

12-0

112

-04

12-0

712

-10

13-0

113

-04

13-0

713

-10

14-0

114

-04

④CHINA CONTAINERIZED FREIGHT INDEX (CCFI) HISTORY

EUR MEDUSWC USEC

3-4.　Latest Economic Trends

　

*EU5カ国は独仏英伊蘭

　　

0

500

1,000

1,500

2,000

2,500

2007 2008 2009 2010 2011 2012 2013

USA EuropeAsia ChinaJapan

(10,000 units)

-10

-5

0

5

10

15(%)

② Real GDP Growth (%)

Japan

Korea

USA

Brazil

Russia

India

China

Germa

ny

France

UK

0

2,000

4,000

6,000

8,000

⑤ Steel Export and Import of China

Export Import

Ministry of the Commerce of China, June 2014

(1,000 ton)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

④ Iron Ore Import

China Import Japan Import

20

*Growth Rate: YoY

-25

-20

-15

-10

-5

0

5

10

15

20

25（％） ③ Mining and Industrial Output Growth (%)

Japan

Korea

USA

Russia

China

Germany

France

UK

India

⑥ Sales of Automobiles

Ministry of the Commerce of China, June 2014

① Key Economic Indicators for North

1,000 ton

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2008 1,084 1,103 1,005 1,013 973 1,046 923 844 820 777 652 560

2009 490 582 505 478 540 585 594 586 585 534 588 581

2010 615 603 626 687 580 539 550 606 597 539 551 526

2011 636 518 585 541 549 613 601 571 630 628 685 689

2012 699 698 654 717 708 760 746 750 872 894 861 954

2013 910 968 1021 856 914 836 896 891 873 889 1091 999

2014 880 907 946 1072 1001 893 1093

400

500

600

700

800

900

1,000

1,100

1,200units：1,000 US Housing Starts (U.S. Census)

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2008 4.9% 4.8% 5.1% 5.0% 5.5% 5.6% 5.8% 6.2% 6.2% 6.6% 6.8% 7.2%

2009 7.7% 8.2% 8.6% 8.9% 9.4% 9.5% 9.4% 9.7% 9.8% 10.1% 10.0% 10.0%

2010 9.7% 9.7% 9.7% 9.8% 9.6% 9.5% 9.5% 9.6% 9.6% 9.7% 9.8% 9.4%

2011 9.0% 8.9% 8.8% 9.0% 9.1% 9.2% 9.1% 9.1% 9.1% 9.0% 8.6% 8.5%

2012 8.3% 8.3% 8.2% 8.1% 8.2% 8.2% 8.3% 8.1% 7.8% 7.9% 7.7% 7.8%

2013 7.9% 7.7% 7.6% 7.5% 7.6% 7.6% 7.4% 7.3% 7.2% 7.3% 7.0% 6.7%

2014 6.6% 6.7% 6.7% 6.3% 6.3% 6.1% 6.2% 6.1%

4%

5%

6%

7%

8%

9%

10%

US Unemployment Rate

30

35

40

45

50

55

60

65

70

75

80

-40.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

50.0ISM Index

Cargo Increase

Ratio (YoY) Cargo Growth from Asia to US and ISM Non-Manufacturing Index

Asia-USA Cargo Increase Ratio (YoY)ISM Non-Manufacturing index

3-5. Emerging Markets (China)

① Grain Transportation Driven by China (Soy Bean)

　　　　　

　　 　

0

50

100

150

200

250

300

350

400

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

(bil. US$） ② Trade Trends for China

Export

Import

Profit of Trade

２１

⑤ Gap between Urban and Rural Areas, 2012

＜Trade White Paper 2012＞

＜Jetro, as of July 2014＞

0.77

3.62

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

85 87 89 91 93 95 97 99 01 03 05 07 09 11

(%) （bil.SCE ton*） ③ Energy Consumption in China

Energy Consumption

Growth Rate (YoY)

0

20

40

60

80

100

120

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Soy Bean Import Quantity by Country

Others Spain Mexico Argentina

Germany Japan Netherland China

0

10

20

30

40

50

60

70

80

90

100

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Soy Bean Export Quantity

Others USA Paraguay Argentina Brazil

（mil.ton）

（mil. ton）

④ Per Capita GDP by Province in China

Guandong

Hubei

Sichuan Yunnan

Guizhou

*SCE=Standard Coal Equivalent

Shanghai

＜1,000 yuan＞

Beijing Guangdong Hubei Sichuan Yunnan Guizhou

Gap (1st-31st)

Gap (1st-31st)

Shanghai

5.8 Times

１０.９ Times

７.3 Times

Shanghai

Beijing

Beijing Hubei

Sichuan

Yunnan Guizhou

Guangdong

Average Household Asset i n China (10,000 yuan)

Urban Rural Urban/Rural (times)

Financial Asset 11.2 3.1 3.6

Non-financial Asset 145.7 12.3 11.8

Total Asset 156.9 15.4 10.2

Data: 'China Household Finance Survey'

by Survey and Reseach Center for China Household Finance

4. Bulk Carrier Business　

① "K" Line's Dry Bulk Fleet

0103 0203 0303 0403 0503 0603 0703 0803 0903 1003 1103 1203 1303 1403

Cape (DWT 170,000 ton～） 33 33 45 50 51 56 62 61 61 68 77 88 99 99

Over Panamax (DWT around 100,000 ton） 10 11 12 15 14 12 15 15 16 18 20 21 26 30

Panamax (DWT approx. 6-70,000 ton 23 23 29 28 40 33 35 42 35 44 49 48 42 56

Handy Max (DWT approx. 4-50,000 ton 13 14 20 16 15 17 21 24 22 27 31 46 50 50

Small Handy (DWT appox. 3-40,000 ton） 19 21 17 17 15 11 11 12 15 12 13 17 22 26

Chip + Pulp 11 11 13 14 14 14 15 15 17 16 16 16 13 10

Ｔｏｔａｌ 109 113 136 140 149 143 159 169 166 185 206 236 252 271

*Data for Over Panamax till 0503 show no. of vessels operated by thermal coal carrier division

② "K" Line's Energy Transportation Vessel Fleet

0203 0303 0403 0503 0603 0703 0803 0903 1003 1103 1203 1303 1403

LNG (inc. co-owned) 21 22 24 26 30 31 34 47 47 46 43 43 43

Tankers ＬＰＧ 2 3 3 3 3 3 5 5 5 5 5 5 5

ＣＬＥＡＮ 2 3 3 3 2 5 5 6 6 6 6 4 4

ＤＩＲＴＹ 5 5 6 9 10 10 12 13 14 10 7 5 5

ＶＬＣＣ 3 4 4 4 4 5 6 6 9 9 8 8 7

Tankers Ｔｏｔａｌ 12 15 16 19 19 23 28 30 34 30 26 22 21

0

30

60

90

120

150

180

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

Year

③ Ship Price as of Placing Order (Dry Bulkers, Tankers)

ＶＬＣＣ Aframax

Cape Panamax

Handy

33 33 45 50 51 56 62 61 61 68

77 88 99 99

10 11 12 15 14

12 15 15 16 18

20 21

26 30

23 23 29 28

40 33 35 42 35

44 49

48 42

56

13 14 20 16

15 17 21 24 22

27 31

46 50

50

19 21

17 17 15 11

11 12 15

12 13

17 22

26

11 11 13 14

14 14 15

15 17 16

16

16 13

0

30

60

90

120

150

180

210

240

0103 0203 0303 0403 0503 0603 0703 0803 0903 1003 1103 1203 1303 1403

vessels Cape Over Panamax Panamax

Handy Max Small Handy Chip + Pulp

21 22 24 26 30 31 34

47 47 46 43 43 43 2 3 3

3 3 3

5

5 5 5 5 5 5

2 3 3 3

2 5 5

6 6 6 6 4 4

5 5 6

9 10

10 12

13 14 10 7

5 5

3 4

4 4

4 5

6

6 9 9 8

8 7

0

10

20

30

40

50

60

70

80

90

0203 0303 0403 0503 0603 0703 0803 0903 1003 1103 1203 1303 1403

vessels LNG (inc. co-owned) Tankers ＬＰＧ Tankers ＣＬＥＡＮ Tankers ＤＩＲＴＹ Tankers ＶＬＣＣ

22 ＜THE JAPAN MARITIME DAILY ＞

050

100150200250300350400450

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

④Number of LNG Carriers in the industry

4-2. Demand on Dry Bulk

　　①　Transition of World Crude Steel Production

Japan

111.5

China

779.0

Korea India

France

Germany

Italia

Spain

UK

Turkey

CIS(exSoviet)

USA

Brazil Others

2013 Total 1,582 mil ton

（YoY 2.4 %）

Japan China KoreaIndia France GermanyItalia Spain UKTurkey CIS(exSoviet) USABrazil Others

Japan

107.6

China

683.2

Korea India

France

Germany

Italia

Spain

UK

Turkey

CIS(exSoviet)

USA

Brazil

Others

2011 Total 1,516 mil ton

（YoY 7.4 %）

Japan China KoreaIndia France GermanyItalia Spain UKTurkey CIS(exSoviet) USABrazil Others

Japan

109.5

China

626.6

Korea India

France

Germany

Italia Spain

UK

Turkey

CIS(exSoviet)

USA

Brazil Others

2010 Total 1,411 mil ton

（YoY 17.2 %）

Japan China KoreaIndia France GermanyItalia Spain UKTurkey CIS(exSoviet) USABrazil Others

Japan

China Korea

India

France Germany

Italia

Spain

UK Turkey

CIS(Soviet)

USA

Brazil

Others

1985 Total 717 mil.ton

Japan China KoreaIndia France GermanyItalia Spain UKTurkey CIS(Soviet) USABrazil Others

Japan

101.6

China

95.4

Korea

India

France

Germany

Italia

Spain UK Turkey

CIS(exSovi

et)

USA

Brazil

Others

1995 Total 752 mil.ton

Japan China Korea India

France Germany Italia Spain

UK Turkey CIS(exSoviet) USA

Brazil Others

Japan China,

Korea India

France Germany

Italia Spain

UK

Turkey

CIS(Soviet

)

USA

Brazil Others

1955 Total 273 mil.ton

Japan China KoreaIndia France GermanyItalia Spain UKTurkey CIS(Soviet) USABrazil Others

Japan China Korea

India

France

Germany

Italia

Spain UK

Turkey CIS(Soviet

)

USA

Brazil Others

1965 Total 459 mil.ton

Japan China KoreaIndia France GermanyItalia Spain UKTurkey CIS(Soviet) USABrazil Others

Japan China

Korea

India

France Germany

Italia

Spain

UK

Turkey

CIS(Soviet

)

USA

Brazil

Others

1975 Total 647 mil.ton

Japan China KoreaIndia France GermanyItalia Spain UKTurkey CIS(Soviet) USABrazil Others

Japan

112.5

China

353.2

Korea India

France

Germany Italia

Spain UK

Turkey

CIS(exSoviet

)

USA

Brazil

Others

2005 Total 1,146 mil.ton

Japan China Korea

India France Germany

Italia Spain UK

Turkey CIS(exSoviet) USA

Brazil Others

23

Data: The Japan Iron & Steel Federation, as of July 2013

4-2. Demand on Dry Bulk

②　Global Main Trades of Coal （2012 Estimation）

6,400

7,400

8,400

9,400

10,400

11,400

12,400

10,000ton ⑤Iron Ore Stocks at Chinese Ports

0100200300400500600700800900

1,0001,1001,2001,3001,400

mil tons ④ Iron Ore Import into Major Asian Countries

JapanChinaKoreaTaiwanTotal

0

500

1,000

1,500

2,000

2,500mil tons oil equivalent ③ World Coal Consumption

USA EU15

China Japan

Russia India

Others ASEAN

24

BP Statistical Review of World Energy June 2014

0

2000

4000

6000

1990 2000 2010 2020 2035 2040

Estimate for Future Coal Demand

World

China

India

mil tons, oil equivalent

Data: METI Energy White Paper 2014

(*)Cargo flow under 3 million tons not included

Blue : Increased (YoY), Red : Decrease (YoY)

Import to China is included in "Other Asia"

Japan

Other Europe

China

Other Asia

OECD Europe

S.America

S.Aｆrica

Australia

Indonesia

Columbia

U.S.A

Canada

Russia

(Unit: million ton)

EDMC Asia/Energy Outlook 2014

SSY, as of July 2014

⑥ BDI & Port Congestion in Australia

Clarkson, as of July 2014

N.America Africa/M.East

China Custeel Data 2014

Waiting time tends to increase in 1st quarter (Jan-Mar) of the year due to seasonal reasons such as rainy season, cyclone and rush demand before Chinese new year

5.　Car Carrier Business

No. of Cars (RT) 0103 0203 0303 0403 0503 0603 0703 0803 0903 1003 1103 1203 1303 1403

6000 - 3 4 7 10 12 13 17 22 24 28 34 35 41

5000 （4750-5650） 28 28 28 26 26 29 30 32 26 21 23 21 23 21

4000 （3800-4600） 13 13 13 15 17 20 24 25 21 16 20 24 20 19

3000 （2800-3500） 10 8 9 13 13 15 14 11 10 4 4 4 3 3

2000 （1600-2500） 10 8 6 4 2 2 5 5 4 7 8 8 8 8

800 （800-850） 6 5 5 5 10 15 14 12 10 6 6 6 6 6

Ｔｏｔａｌ 67 65 65 70 78 93 100 102 93 78 89 97 95 98

0

100

200

300

400

500

600

700

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

万

Others

Oceania

Africa

South America

Central America

Russia

Middle East

Other Asia

China

EU

USA

6 5 5 5 10

15 14 12 10 6 6 6 6 6

10 8 6 4

2

2 5 5 4

7 8 8 8 8

10 8 9 13

13

15 14 11

10 4 4 4 3 3

13

13 13 15

17

20 24

25

21

16 20

24 20 19

28

28 28 26

26

29

30 32

26

21

23 21

23 21

3 4 7

10

12

13 17

22

24

28

34 35 41

0

10

20

30

40

50

60

70

80

90

100

110

0103

0203

0303

0403

0503

0603

0703

0803

0903

1003

1103

1203

1303

1403

Vessels

Fleet Scale

(No of. Vessels)

800 2000 3000

4000 5000 6000

0

50

100

150

200

250

300

350

400

450

0103

0203

0303

0403

0503

0603

0703

0803

0903

1003

1103

1203

1303

1403

1,000 cars

Fleet Scale

（Est. Capacity)

800 2000 3000

4000 5000 6000

5-2. Demand on Vehicles

①　World Automobile Production　

③ Transition of Overseas Vehicle Production by Japanese Automakers

　　　

Japan

21%

China

48%

Korea

10%

India

8%

Thailand

6%

Iran

2%

Indonesia

3% Malaysia

1% Others

1%

1997 2013 Asia 31.2％ 52.5％ Europe 34.2％ 22.6％

USA 33.2％ 24.2％

26

Breakdown in Asia (2013)

0

5

10

15

20

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Unit : mil.cars ④ Four-wheel Car Production and Sales in USA Production Sales (Import in Sales)

0

20

40

60

80

100

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

（Unit: Mil. Cars）

CHINA

JAPAN

OTHER ASIA

(EX.Japan and China）

EUROPE

USA

OCEANIA

AFRICA

ASIA

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Unit 1000 Cars

Overseas Vehicle Production by Japanese Automakers

USA ＥＵ AsiaMiddle East Europe(ex.EU) North America (ex.USA)Latin America Africa Oceania

5-2. Demand for Vehicles and Machinery

⑥　Car Ocean Transport Volume by Loading Country

　　　

　　⑦　Market Size of Construction Machinery Sales in World Main Areaand Export Value from Japan in 2012

60000

70000

80000

90000

100000

110000

120000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Japan Used Car ex. JapanSouth Korea Usec Car ex. KoreaTaiwan ChinaASEAN OceaniaIndian Subcontinent Middle EastNAFTA EuropeAndean MercosulAfrica Global Sales

27

＜Made by K-Line＞

Global Sales (1,000 units) Transport Volume by Loading Country (1,000

units)

DRIVE GREEN PROJECT

Energy Saving

More Suitable for High & Heavy cargo

More Efficient Cargo Handling

2012 Export from Japan ：$ 1.4 bil Market share ： 9.8 %

＜Source: Website of Ministry of Economy, Trade and Industry, METI＞

2012 Export from Japan ：$ 2.1 bil Market share i ： 8.9 %

2012 Export from Japan ：$ 3.2 bil Market share ： 14 %

2012 Export from Japan ：$ 0.9 bil Market share i： 6.3 %

EU China

Asia/Oceania

JAPAN

USA

2007 2012 2017

2007 2012 2017 2007 2012 2017

2007 2012 2017

2007 2012 2017

6. Containership Business

①　 "K"Line Containership Fleet0103 0203 0303 0403 0503 0603 0703 0803 0903 1003 1103 1203 1303 2014

8000TEU over (8000-) 0 0 0 0 0 0 3 4 6 8 8 9 13 13

5500TEU type (5500-6500) 0 8 13 13 13 15 18 18 18 16 19 18 18 18

3500TEU type (3400-4000) 21 16 17 17 22 25 23 24 25 29 24 28 26 24

2800TEU type (2700-2900) 8 5 5 4 5 5 7 8 5 5 4 3 2 2

2000TEU type (1500-2500) 10 13 10 13 11 9 11 17 20 19 15 14 13 14

～1400TEU type 18 19 18 17 22 23 27 28 24 10 12 8 3 3

Total 57 61 63 64 73 77 89 99 98 87 82 80 75 74

③　"K"Line Volume, Share for Asia-North America/Europe Routes

　　*As cargo volume for '97 1H-'99 2H, half of the actual data are indicated.

266 258 277 280

311

355

391 413 414 407

426 450

435 409

504 530

516 520

556 575 584 566

615 630 617

595

661 667 666 657

711

754 742 732

808 825

804

763

859 865

751

628

729

810 789

753

789 790 777

738 771

833

793 768

846 871

811

716

760 787

767

702

1,194

1,128

1,110

1,068

1,143

1,078

1,132

1,073

1,055

1,073 1,037

981

861

915

852

810

932 925

1,044

1,122

1,050

1,000

1,108

1,178 1,175 1,173

1,207 1,250

1,243

1,144 1,139

1,175 1,146

1,143

1,220

1,349

1,301

1,299 1,337

1,403

1,283

984

855

909

1,012

1,147

1,315

1,440

1,283

1,235

1,249

1,181

1,108

1,120

1,315 1,323

1,242

1,262

1,221

1,274

1,186

1,310

0

200

400

600

800

1,000

1,200

1,400

1,600

0

200

400

600

800

1,000

1,200

97F 1

H

97F 2

H

98F 1

H

98F 2

H

99F 1

H

99F 2

H

00F 1

Q

00F 2

Q

00F 3

Q

00F 4

Q

01F 1

Q

01F 2

Q

01F 3

Q

01F 4

Q

02F 1

Q

02F 2

Q

02F 3

Q

02F 4

Q

03F 1

Q

03F 2

Q

03F 3

Q

03F 4

Q

04F 1

Q

04F 2

Q

04F 3

Q

04F 4

Q

05F 1

Q

05F 2

Q

05F 3

Q

05F 4

Q

06F 1

Q

06F 2

Q

06F 3

Q

06F 4

Q

07F 1

Q

07F 2

Q

07F3Q

07F4Q

08F1Q

08F2Q

08F3Q

08F4Q

09F1Q

09F2Q

09F3Q

09F4Q

10F1Q

10F2Q

10F3Q

10F4Q

11F1Q

11F2Q

11F3Q

11F4Q

12F1Q

12F2Q

12F3Q

12F4Q

13F1Q

13F2Q

13F3Q

13F4Q

1,000 TEU USD/TEU ② "K" Line Containership Average Freight/Volume for All Routes

Volume

Average Freight

28

200

1

1H

200

1

2H

200

2

1H

200

2

2H

200

3

1H

200

3

2H

200

4

1H

200

4

2H

200

5

1H

200

5

2H

200

6

1H

200

6

2H

200

7

1H

200

7

2H

200

8

1H

200

8

2H

200

9

1H

200

9

2H

201

0

1H

201

0

2H

201

1

1H

201

1

2H

201

2

1H

201

2

2H

201

3

1H

201

3

2H

KL Volume 172 195 208 235 244 251 248 280 291 334 325 374 382 439 361 384 300 352 332 343 314 329 330 413 369 410

Share 4.8% 4.8% 4.9% 4.7% 5.1% 4.8% 4.6% 4.6% 4.8% 4.7% 4.8% 4.9% 5.4% 5.7% 5.5% 5.6% 5.6% 5.5% 5.2% 4.6% 4.7% 4.6% 4.7% 5.6% 5.1% 5.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

50

100

150

200

250

300

350

400

450

500

(Share) （1,000TEU） Asia-North America East-bound Volume, Share

2001

1H

2001

2H

2002

1H

2002

2H

2003

1H

2003

2H

2004

1H

2004

2H

2005

1H

2005

2H

2006

1H

2006

2H

2007

1H

2007

2H

2008

1H

2008

2H

2009

1H

2009

2H

2010

1H

2010

2H

2011

1H

2011

2H

2012

1H

2012

2H

2013

1H

2013

2H

KL Volume 97 101 98 151 155 174 179 187 198 209 222 234 262 252 269 290 227 224 226 249 246 245 239 241 225 220

Share 3.7% 3.7% 3.5% 5.0% 4.5% 4.8% 4.4% 4.5% 4.2% 4.0% 4.1% 3.8% 4.0% 3.5% 4.0% 4.5% 4.2% 3.6% 3.4% 3.5% 3.6% 3.5% 3.5% 3.7% 3.3% 3.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

50

100

150

200

250

300

350

（Share) （1,000TEU） Asia-Europe West-bound Volume, Share

18 19 18 17 22 23

27 28 24

10 12 8 3 3

10 13

10 13 11 9

11 17

20

19 15 14

13 14

8 5

5 4 5 5

7

8 5

5 4

3

2 2

21 16 17 17

22 25

23

24 25

29 24

28

26 24

0 8 13 13

13 15

18

18 18

16

19 18

18 18 0

0 0 0

0 0

3

4 6

8 8

9

13 13

0

20

40

60

80

100

Vessels

Fleet Scale（No. of Vessels）

～1400TEU type 2000TEU type2800TEU type 3500TEU type5500TEU type 8000TEU over

0

50

100

150

200

250

300

350

1,000 TEU

Fleet Scale

（Estimated Capacity）

～1400TEU type 2000TEU type2800TEU type 3500TEU type5500TEU type 8000TEU over

6-1. "K" Line Fleet and Cargo Volume

④ "K"Line/Market Cargo Volume, Loading Factor for Asia-North America/Europe Services

-20%

0%

20%

40%

60%

80%

100%

120%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1996

1997

1997

1998

1998

1999

1999

2000

2000

2000

2000

2001

2001

2001

2001

2002

2002

2002

2002

2003

2003

2003

2003

2004

2004

2004

2004

2005

2005

2005

2005

2006

2006

2006

2006

2007

2007

2007

2007

2008

2008

2008

2008

2009

2009

2009

2009

2010

2010

2010

2010

2011

2011

2011

2011

2012

2012

2012

2012

2013

2013

2013

2013

2014

2014

2014

2014

2H1H2H1H2H1H2H1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q

1,000 TEU/USD

Container Transpacific Trade (Market) Data: Drewry CAPA E/B CARGO E/B Freight(USD/teu) Loading FactorE/B(%)

0%

20%

40%

60%

80%

100%

120%

0

50

100

150

200

250

1,000 ＴＥＵ

"K"Line Asia-N. America (East-bound) Volume, L/F

Cargo Volume L/F

0%

20%

40%

60%

80%

100%

120%

0

40

80

120

160

1,000 ＴＥＵ

"K"Line Asia-Europe (West-bound) Volume, L/F

Cargo Volume L/F

0%

20%

40%

60%

80%

100%

120%

0

500

1,000

1,500

2,000

2,500

3,000

1998

1998

1999

1999

2000

2000

2000

2000

2001

2001

2001

2001

2002

2002

2002

2002

2003

2003

2003

2003

2004

2004

2004

2004

2005

2005

2005

2005

2006

2006

2006

2006

2007

2007

2007

2007

2008

2008

2008

2008

2009

2009

2009

2009

2010

2010

2010

2010

2011

2011

2011

2011

2012

2012

2012

2012

2013

2013

2013

2013

2014

2014

2014

2014

1H2H1H2H1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q

1,000 TEU/USD

Container Asia Europe Trade (Market) Data: Drewry

CAPA Ｗ/B CARGO Ｗ/B Freight(USD/teu) Loading Factor E/B(%)

29

as of July 2014

as of July 2014

6-2. Container Terminal Operated by "K"Line

Terminal Location Length Depth Total Area Storage Capacity* Gantry Cｒane

Japan "K"LINE Tokyo Container Terminal Ohi No.1 and No.2 Berth 660 ｍ 15 ｍ 259,500 m2 4,370 ＴＥＵ 5 Units

"K"LINE Yokohama Container Terminal Honmoku Quay A No.5 and 6 Berth 400 ｍ 12 ｍ 133,591 m2 1,968 ＴＥＵ 3 Units

"K"LINE Osaka Container Terminal Nanko No.8 Berth 350 ｍ 14 ｍ 63,031 m2 1,082 ＴＥＵ 2 Units

"K"LINE Kobe Container Terminal** Rokko Terminal RC 4/5 Berth 700 ｍ 14 ｍ 269,510 m2 4,478 ＴＥＵ 5 Units

USA International Transportation Service, Inc. Long Beach, CA., Pier G 1,552 ｍ 13-16 ｍ 955,000 m2 12,155 ＴＥＵ 17 Units

Husky Terminal and Stevedoring Inc. Tacoma, WA., Berth 3&4 830 ｍ 16 ｍ 376,000 m2 4,800 ＴＥＵ 4 Units

Belgium Antwerp Internatinal Terminal NV*** Antwerp, PSA's Noordzee Terminal 1,125 ｍ 15.5 ｍ 790,000 m2 3,055 ＴＥＵ 8 Units

* Flat Space **Operating with APM Terminals, Japan. Storage Capacity etc. is a total of the area that APM Terminals, Japan utilizez.

***Joint venture between K-Line ,Yang Ming Line,Hanjin Shipping and PSA-HMN.

Tokyo・Yokohama Osaka・Kobe Long Beach

Tacoma

Antwerp

Tokyo（Ohi)

Kobe（Rokko）

ITS (Long Beach)

Ａ．Ｉ．Ｔ

30

Husky (Tacoma)

6-3. Container Cargo Movements

　①　Container Cargo Movements

　　　②　Asia ⇔　North America/Europe Cargo Volume

　　　　　

0

3,000

6,000

9,000

12,000

15,000

1000 TEU Asia⇒North America

31

0

2,000

4,000

6,000

1000 TEU North America⇒Asia

China * Japan Korea Taiwan ASEAN South Asia

*Data for China includes Hong Kong and Macao

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000Asia⇒Europe 1000 TEU

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000Europe⇒Asia 1000 TEU

6-4. Container Handling Volume by Port

　　①　Container Handling Volume in Asia

　②　Top 10 Ports for 2013 Container Handling

　 　　（Unit: Million TEU） for referencePort 2013 2012 Growth Ratio 2006

1 Shanghai 33.6 32.5 3.4% Singapore2 Singapore 32.5 31.6 2.9% Hong Kong3 Shenzhen 23.2 22.9 1.5% Shanghai4 Hong Kong 22.9 23.7 -3.6% Shenzhen5 Busan 17.6 16.9 3.8% Busan6 Ningbo 16.8 15.6 7.0% Kaohsiung7 Qingdao 15.5 14.4 7.0% Rotterdam8 Guangzhou 15.3 14.7 3.8% Hamburg9 Dubai 13.6 13.2 2.7% Dubai8 Tianjin Xingang 13.0 12.3 5.7% Los Angels

※ 　　　　Ports in China(Containerization Inｔernational, March 2014)

5,038 Osaka Bay

1,724

7,788 1,354

Tokyo Bay

Busan 17,600

634

9,781 979

Kaohsiung

Shanghai 33,600

49

Singapore 32,500 917

Hong Kong

1,465 22,900

2013（Above）

1980（Below）

（Unit：1,000TEU)

32

0

5

10

15

20

25

30

35

40mln.TEU ③ Transition of Container Handling among Major Ports in Asia

Singapore

Shanghai

Hong Kong

Shenzhen

Busan

Kaohsiung

Qingdao

Tokyo

Yokohama

Nagoya

Kobe

Osaka