1

Supplementary Report

May 2004Kawasaki Kisen Kaisha, Ltd.

2

Shipping Markets

Supplemental Information-1

3

11--1.1. ““KK””Line Container Loading VolumeLine Container Loading Volume

Loading Volume(Unit;1000TEU) E/W Bound 02F Yearly 03F 1Q 03F 2Q 03F 1H 03F 3Q 03F 4Q 03F 2H 03F YearlyAsia/N.America E/Bound 462 130 131 261 120 114 234 495

W/Bound 220 55 54 109 57 52 109 218682 185 185 370 177 166 343 713

Asia/Europe W/Bound 300 85 94 179 87 90 177 356E/Bound 217 53 57 110 67 59 126 236

517 138 151 289 154 149 303 592　

Load Factor(%) E/W Bound 02F Yearly 03F 1Q 03F 2Q 03F 1H 03F 3Q 03F 4Q 03F 2H 03F YearlyAsia/N.America E/Bound 92.6% 94.5% 93.9% 94.2% 85.5% 86.0% 85.8% 90.0%

W/Bound 60.4% 59.0% 57.1% 58.0% 59.4% 58.1% 58.8% 58.4%79.0% 80.2% 79.0% 79.6% 74.9% 74.8% 74.9% 77.2%

Asia/Europe W/Bound 90.6% 91.4% 96.9% 94.2% 85.9% 89.0% 87.5% 90.7%E/Bound 82.5% 74.9% 75.2% 75.0% 88.3% 81.1% 84.8% 79.9%

86.9% 84.3% 87.3% 85.9% 87.0% 85.7% 86.3% 86.1%

4

As of 2003 Oct (Source CI 2003 November edition)

Ranking Carrier/group Total TEU Total TEU Vessel(Last Year) capacity 2003 capacity 2002

1 (1) A.P. Moller group 844,626 773,931 3282 (2) Mediterranean Shipping Co. 516,876 413,814 2173 (4) Evergreen group 442,310 403,932 1524 (3) P&O Nedlloyd 419,527 406,654 1575 (8) CMA CGM group 299,174 225,436 1336(5) Hanjin group 290,677 304,409 767 (6) COSCO Container Lines 274,128 255,937 1488 (7) APL 273,573 227,749 829(11) NYK 233,934 177,700 7710 (9) MOL 222,533 188,326 72

11 (10) CP Ships 201,706 187,890 8512 (12) "K" Line 186,017 161,015 63

Ranking Alliance Total TEU Vesselcapacity 2003

1 Grand Alliance 993,813 3302 CKYH 904,605 3423 A.P. Moller group 844,626 3284 The New World Alliance 632,654 1895 Mediterranean Shipping Co. 516,876 217

11--2. 2. Line/Alliance wise Line/Alliance wise Vessel/Capacity ComparisonVessel/Capacity Comparison

5

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

TEU

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Share

KL Volume Share

KL Volume 82 89 85 82 90 104 91 95 113 125 110 114 130 131 120 114

Share 4.4% 4.2% 4.4% 4.7% 4.8% 4.9% 4.7% 5.1% 4.8% 4.8% 4.7% 5.0% 5.2% 5.0% 4.9% 4.7%

20001Q

20002Q

20003Q

20004Q

20011Q

20012Q

20013Q

20014Q

20021Q

20022Q

20023Q

20024Q

20031Q

20032Q

20033Q

20034Q

　　　　　

11--3. 3. ““KK””Line Container Volume & Share Line Container Volume & Share (Asia to North America 00F(Asia to North America 00F--03F) 03F)

6

11--4. 4. ““KK””Line Container Volume & Share Line Container Volume & Share (North America to Asia 00F(North America to Asia 00F--03F) 03F)

44,000

46,000

48,000

50,000

52,000

54,000

56,000

58,000

60,000

TEU

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Share

KL Volume Share

KL Volume 51 51 52 55 53 54 57 50 54 50 58 58 55 54 57 52

Share 5.7% 5.8% 5.7% 6.0% 6.0% 6.3% 6.3% 5.5% 5.5% 5.9% 6.2% 5.6% 5.6% 5.5% 5.4% 4.7%

20001Q

20002Q

20003Q

20004Q

20011Q

20012Q

20013Q

20014Q

20021Q

20022Q

20023Q

20024Q

20031Q

20032Q

20033Q

20034Q

7

11--5. 5. ““KK””Line Container Volume & Share Line Container Volume & Share (Asia (ex.India) to Europe 00F(Asia (ex.India) to Europe 00F--03F)03F)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

TEU

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Share

KL Volume Share

KL Volume 48 51 48 48 49 53 49 37 61 79 72 74 81 90 84 86

Share 3.6% 3.6% 3.6% 3.7% 3.6% 3.7% 3.6% 2.8% 4.2% 5.1% 5.0% 4.5% 4.5% 4.9% 4.8% 4.5%

20001Q

20002Q

20003Q

20004Q

20011Q

20012Q

20013Q

20014Q

20021Q

20022Q

20023Q

20024Q

20031Q

20032Q

20033Q

20034Q

8

11--6. 6. ““KK””Line Container Volume & Share Line Container Volume & Share (Europe to Asia (ex.India) 00F(Europe to Asia (ex.India) 00F--03F)03F)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

TEU

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Share

KL Volume Share

KL Volume 37 38 39 38 42 46 47 38 45 49 53 53 49 53 62 55

Share 4.3% 4.7% 4.7% 4.6% 4.7% 5.1% 5.4% 4.4% 4.9% 5.2% 5.7% 5.3% 5.0% 5.1% 6.0% 5.2%

20001Q

20002Q

20003Q

20004Q

20011Q

20012Q

20013Q

20014Q

20021Q

20022Q

20023Q

20024Q

20031Q

20032Q

20033Q

20034Q

9

600

800

1000

1200

1400

1600

1800

2000

2200

2400

93-4th

94-2nd

94-4th

95-2nd

95-4th

96-2nd

96-4th

97-2nd

97-4th

98-2nd

98-4th

99-2nd

99-4th

00-2nd

00-4th

01-2nd

01-4th

02-2nd

02-4th

03-1st

03-3rd

US$/TEU E.Bound

W.Bound

11--7. 7. Trend of Average Container Freight Trend of Average Container Freight (Asia(Asia--North America Trade)North America Trade)

(Data:CONTAINERIZATION INTERNATIONAL)

10

11--8. 8. Trend of Average Container freight Trend of Average Container freight (Asia(Asia--Europe Trade)Europe Trade)

500

700

900

1100

1300

1500

1700

93-4th

94-2nd

94-4th

95-2nd

95-4th

96-2nd

96-4th

97-2nd

97-4th

98-2nd

98-4th

99-2nd

99-4th

00-2nd

00-4th

01-2nd

01-4th

02-2nd

02-4th

03-1st

03-2nd

03-4ｔｈ

US$/TEUE.Bound

W.Bound(Data:CONTAINERIZATION INTERNATIONAL)

11

11--9. 9. Trend of Average Container Trend of Average Container Freight /Volume ( Freight /Volume ( ““KK””Line All Trades)Line All Trades)

391 413 414 407 426 450 435 409

504 530 516556 575 584 566520

1,1321,0731,0551,0731,037

981

861915

852932

1,0441,122

1,0601,052

810925

0

100

200

300

400

500

600

700

800

900

1,000

00F 1Q00F 2Q00F 3Q00F 4Q01F 1Q01F 2Q01F 3Q01F 4Q02F 1Q02F 2Q02F 3Q02F 4Q03F 1Q03F 2Q03F 3Q03F 4Q

Volume(1000TEU)

0

200

400

600

800

1,000

1,200

1,400Freight/TEU($)

Volume Freight

12

11--10. 10. CapesizeCapesize Fleet Size RankingFleet Size RankingCapesize fleet by number/operator (1 year or longer) as of Sept., 2003　(100k dwt + )

Share ofRanking Name World ttl

Owned T/C Total Fleet(600)1 *** 53 10 63 11%2 "K" LINE 28 17 45 8%3 *** 39 3 42 7%4 *** 38 38 6%5 *** 37 37 6%

Top 10 total 237 92 329 55%

Number

"K"LINE Group plan for increasing the number of Capesize vessels during the period from Fiscal 2003 through Fiscal 2007 is outlined as follows:

Newbuildings by dwt size: 200 k dwt 　 6 vessels　170-185 k.dwt 14 vessels

　 100 k.dwt 1 vessel　 Total 21 vessels

13

11--11.11. Bulker MarketBulker Market

PANAMAX US GULF/JAPAN GRAIN

0

8

16

24

32

40

48

56

64

72

80

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

($/KT)

01F

02F

03F

14

11--12.12. Tanker MarketTanker MarketTanker Market(VLCC Arabian Gulf/ Japan)

0

20

40

60

80

100

120

140

160

180

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

02Ｆ

01F

03F

15

11--1313. . Transition of Cars/Trucks Transition of Cars/Trucks Transported by PCTCTransported by PCTC

43

34

33

18

28

48

33

26

17

23

52

24

25

33

17

51

24

27

35

19

53

23

29

37

20

52

22

33

48

19

0

20

40

60

80

100

120

140

160

180

(ten thousa

nd

units)

98F 99F 00F 01F 02F 03F

日本・極東/北米（Japan・FE/North America） 日本・極東/欧州（Japan・FE/Europe）日本・極東/その他（Japan・FE/The Other Area） 三国間(Trade not From/To Japan・FE)復航(Trade bound for Japan・FE)

156147 151

156162

174

16

11--14.14. ““KK””Line Vessel Fleet CompositionLine Vessel Fleet Composition

Energy Resource15%

Coastal/Ferry13%

Container18%

Bulk Carrier35%PCTC

19%

March 2004

64

12570

55

47（total 361 vessels）

Energy Resource14%

PCTC19%

Coastal/Ferry12%

Container19%

Bulk Carrier36%

63

12465

49

42

March 2003

（total 343 vessels）

17

11--15. 15. ““KK””Line Container Vessel Fleet CompositionLine Container Vessel Fleet Composition

5500TEU over 13 13

3500TEU（3400~4700）　 17 17

03 March 04 March

2800TEU（2700~2900） 　 　 5 　　　　　　　　4

2000TEU（1500~2500）　 10 　　　　　　　13

1400TEU or under 18 17 Total　　　　　　　　　　　　　 63 64

18

Cape SizeBulker40%

PanamaxBulker22%

Chip/PulpCarrier

11%

SmallhandyBulker14%

HandymaxBulker13%

March 2004

16

1714

(total 125 vessels)

50

28

Chip/Pulp Carrier

11%

Handymax Bulker

16%

Smallhandy Bulker

14%

Panamax Bulker

23%

Cape Sie Bukler

36%45

2920

17

13

March 2003

(total 124 vessels)

11--16. 16. ““KK””Line Bulk Carrier Fleet CompositionLine Bulk Carrier Fleet Composition

19

11--17. 17. ““KK””Line PCTC Vessel Fleet CompositionLine PCTC Vessel Fleet Composition

March 03 March 046000units　 4 6

2000units（1600 ~2500） 6 3

3000units（2800~3500） 9 12

4000units（3800~4600） 13 17

5000units（4,750~5650) 28 26

800units（800 ~850） 　 5 　　 6Total　　　　　　　　　　　　 65　　　　　　　　　70

20

11--18. 18. ““KK””Line Energy Transport Fleet Composition Line Energy Transport Fleet

Tanker/VLCC

4Tanker/AFRA

6

Tanker/CLEAN

3

LPG Carrier 3

Thermal Coal

Carrier

15

LNG Carrier

24

March 2004

(total 55 vessels)

LNG Carrier

22

Thermal Coal Carrier

12

LPG Carrier

3

Tanker/CLEAN

3

Tanker/AFRA

5

Tanker/VLCC

4

March 2003 (total 49 vessels)

Composition

21

Financial Data

Supplemental Information-2

22

22--1.1. Breakdown on NonBreakdown on Non--Operating , ExtraOperating , Extra--Ordinary Items (2003F Half Yearly Basis)Ordinary Items (2003F Half Yearly Basis)

　(unit:billion yen)１．Non-Operating Income/Loss

1H 2H Yearly 1H 2H YearlyConsolidated Total -3.9 -4.0 -7.9 Consolidated Total -3.1 -2.3 -5.4Financial Gain/Loss -2.0 -1.5 -3.5 Financial Gain/Loss -0.6 -0.3 -0.9Exchange Gain/Loss -2.6 -3.0 -5.6 Exchange Gain/Loss -2.6 -2.0 -4.6Others 0.7 0.5 1.2 Others 0.1 0 0.1

　２．Extra-Ordinary Income/Loss

1H 2H Yearly 1H 2H YearlyConsolidated Total -2.4 -5.1 -7.5 Consolidated Total -4.9 -4.8 -9.7Sale of Vessel -1.7 -1.8 -3.5 Sale of Vessel -4.2 -1.1 -5.3

Marketable Securities 0.1 -1.6 -1.5 Marketable Securities 0 -1.9 -1.9Others -0.8 -1.7 -2.5 Others -0.7 -1.8 -2.5

23

326.0

217.7 230.3 263.5317.2

228.0

161.3171.8

188.1

220.4

45.5

42.744.3

46.0

45.2

557 .9 571 .0632 .7

726 .8 760 .0

1000

2000

3000

4000

5000

6000

7000

8000

Container Bulk Carrier/Car Carrier Energy Transportation Others

(Non-Conso lidated)

00F 01F 02F 03F

〈424.0〉 〈449.1〉

〈499.8〉

〈585.0〉

（Conso lidated）

Prospects

04F

〈600.0〉

22--2.2. Transition of Operating RevenuesTransition of Operating Revenues

unit:billion yen

24

Historical Data

Supplemental Information-3

25

-100.0

100.0

300.0

500.0

700.0

900.0

93F 94F 95F 96F 97F 98F 99F 00F 01F 02F 03F 04F

-10

0

10

20

30

40

50

60

70

80

90

100

Operating Revenues Operating Income

Ordinary Income* Net Income (unit:billion yen)

33--1. 1. Consolidated Revenues&IncomesConsolidated Revenues&Incomes

* Ordinary income is income before income taxes and extra-ordinary items

26

3-2. Consolidated ROE/ROA

0

5

10

15

20

25

30

35

40

45

50

93F 94F 95F 96F 97F 98F 99F 00F 01F 02F 03F 04F

（Billion Yen）

0%

5%

10%

15%

20%

25%

30%

35%

Net Income ROE ROA

27

3-3. Consolidated Interest Coverage Ratio

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

93F 94F 95F 96F 97F 98F 99F 00F 01F 02F 03F 04F

（%）

0

2

4

6

8

10

12

14

16

Operation Income Interest Coverage Ratio

28

33--4. 4. Consolidated EV/EBITDAConsolidated EV/EBITDA

0.0

20.0

40.0

60.0

80.0

100.0

120.0

93F 95F 97F 99F 01F 03F

（unit:billion

yen）

0

2

4

6

8

10

12

14

EBITDA EV/EBITDA

29

33--5. 5. Consolidated Assets TurnoverConsolidated Assets Turnover

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

93F 94F 95F 96F 97F 98F 99F 00F 01F 02F 03F 04F

（unit:billion yen）

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Operating Revenues Assets Turnover

30

33--6. 6. Consolidated Ordinary Income* on Consolidated Ordinary Income* on Revenues/Ordinary Income on Total AssetsRevenues/Ordinary Income on Total Assets

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

93F 94F 95F 96F 97F 98F 99F 00F 01F 02F 03F 04F

（unit: billion yen）

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Ordinary Income Revenues on Ordinary Income* Ordinary Income* on Total Assets

* Ordinary income is income before income taxes and extra-ordinary items

31

33--7. 7. Consolidated Debt Equity RatioConsolidated Debt Equity Ratio

0

100

200

300

400

500

600

700

93F 94F 95F 96F 97F 98F 99F 00F 01F 02F 03F 04F

（unit: billion yen）

-20.0

30.0

80.0

130.0

180.0

230.0

280.0

330.0

380.0

Shareholder's Equity Total Assets Debt　Equity　Ratio(Market price basis）

（％）

32

33--8. 8. Consolidated Net Income & EPSConsolidated Net Income & EPS

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

93F 94F 95F 96F 97F 98F 99F 00F 01F 02F 03F 04F

Net Income(unit:billion yen)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

EPS(unit:yen)

Net Income EPS

33

33--9. 9. Consolidated ShareholdersConsolidated Shareholders’’Equity& Equity RatioEquity& Equity Ratio

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

93F 94F 95F 96F 97F 98F 99F 00F 01F 02F 03F 04F

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Shareholders' Equity Equity　Ratio

Shareholders’ Equity (unit:billion yen)

34

33--10. 10. Consolidated Operating Cash FlowConsolidated Operating Cash Flow

0

10

20

30

40

50

60

70

80

90

93F 94F 95F 96F 97F 98F 99F 00F 01F 02F 03F 04F

0

20

40

60

80

100

120

140

160

Operating Cash Flow Cash Flow per Share

(unit:yen)(unit:billion yen)

35

33--11. 11. Consolidated SegmentConsolidated Segment--wise wise Operating RevenuesOperating Revenues

0

100

200

300

400

500

600

700

800

93F 95F 97F 99F 01F 03F

Marine Transportation Sercice Incidental to Transportation Others(unit:billion yen)

36

33--12. 12. NonNon--Consolidated DivisionConsolidated Division--wise wise Operating RevenuesOperating Revenues

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

93F 95F 97F 99F 01F 03F

Container Bulk Carrier/Car Carrier Energy Transportation Other Shipping Business Other Business(unit:billion yen)

37

33--13. 13. Consolidated Segment InformationConsolidated Segment Information

93F 94F 95F 96F 97F 98F 99F 00F 01F 02F 03F

Operating RevenuesMarine Transportation 359,809 361,318 352,090 378,793 411,893 415,820 390,430 455,385 481,200 530,228 622,118Service incidenntal totransportation 66,811 71,562 82,075 86,271 89,951 83,614 83,407 89,527 75,757 88,773 89,885Others 17,472 16,089 15,928 17,555 15,910 13,665 11,855 12,956 14,055 13,722 12,662

Total 444,092 448,969 450,093 482,619 517,754 513,099 485,692 557,868 571,012 632,723 724,665Operating IncomeMarine Transportation 4,424 8,925 22,230 22,003 21,669 18,645 22,136 29,947 13,148 22,383 61,267Service incidenntal totransportation 1,659 1,626 1,566 308 3,686 1,220 3,893 4,885 4,536 4,800 8,062Others 119 605 251 1,204 770 1,105 828 1,084 1,274 2,087 1,269

Total 6,202 11,156 24,047 23,515 26,125 20,970 26,857 35,916 18,958 29,270 70,598Eliminations -1 16 18 84 795 536 -40 91 89 10 -65

Consolidated 6,201 11,172 24,065 23,599 26,920 21,506 26,817 36,007 19,047 29,280 70,533

(unit: million yen)

38

33--14. 14. NonNon--Consolidated Financial DataConsolidated Financial Data

93F 94F 95F 96F 97F 98F 99F 00F 01F 02F 03F

Operating Revenues 335,756 334,858 328,122 348,611 379,601 385,482 362,029 424,021 449,153 499,791 584,958Container 174,754 172,237 163,403 172,897 172,451 180,455 186,214 217,698 230,353 263,456 317,185Bulk&Carrier 119,530 124,793 129,866 138,290 168,428 167,558 141,626 161,306 171,837 188,112 220,364Energy Transportation 37,921 35,323 32,194 34,944 36,445 35,745 32,330 42,749 44,363 46,045 45,231Other Shipping Business 3,551 2,505 2,659 2,480 2,277 1,722 1,858 1,809 1,800 1,396 1,291Other Business 0 0 0 0 0 0 0 457 799 780 882

Operating Income 2,363 7,319 12,788 12,281 17,171 12,766 16,809 24,444 8,299 19,843 55,068Ordinary Income* -588 988 9,827 6,949 10,258 8,233 11,133 21,582 7,115 16,434 49,670Net Income -2,458 54 1,594 1,811 2,244 3,015 4,042 4,532 2,786 6,535 24,452　

Total Assets 279,380 253,502 245,896 255,032 258,367 241,432 242,278 241,295 259,200 269,140 329,965Total Liabilities 228,858 202,927 193,727 200,780 201,870 183,675 183,304 178,677 194,792 203,268 233,126Shareholder's Equity 50,522 50,575 52,169 54,252 56,497 57,757 58,974 62,618 64,408 65,872 96,839

Dividend per Share 0 0 0 0 3 3 4 5 3 5 10Dividend Yield - - - - 78.2 58.2 58.1 65.5 63.9 45.9 24.2

(unit:million yen)

* Ordinary income is income before income taxes and extra-ordinary items