New Management Plan "K" LINE Vision 2008

May 13, 2004

New Management Plan "K" LINE Vision 2008

Since launching management’s 3-year "KV-PLAN" in April 2002, we have been seriously addressing each of the fundamental assignments such as a) expansion of scale in every business sector; b) cost curtailment; and c) safety in navigation and cargo operations, etc.
The major part of our mission related to that Plan has been accomplished with most of the final goals already attained including numerical targets. With a view to this achievement, we have concluded to terminate that Plan as of the end of Fiscal 2003, one year ahead of schedule and launch "K" LINE Vision 2008, a new intermediate management plan that will guide our course until the 90^th anniversary of the Company’s foundation, replacing the fundamental direction of the previous plan.
In "K" LINE Vision 2008, the forthcoming 5-year period from now to our 90^th anniversary will be regarded as a runway for making large strides and remarkable leaps that will ensure the future of both our business foundation and infrastructure.
Recognized as the most important assignment in "K" LINE Vision 2008 is "sustainable growth and establishment of a stable profitability system."
On that basis, we will continue on the cost restructuring campaign at an all-group level and will seek every opportunity for profit, looking for new business and developing fields in the world’s remarkably developing markets.

The new plan is briefly summarized as follows:

1. Achievement Goals
We will secure "A" ratings for "K" LINE and establish a stable payment system of 10% or more dividend, realizing the following respective numerical targets: shareholders’ equity ¥300 billion or more; ratio of shareholders’ equity over capital 40% or more; ROE 16% or more; ratio between debts and equity less than 80%

2. Principles of Management

3. Vision

4. Fundamental assignments

5. Business strategy

6. Assignments related to organization and personnel

(primary finance-related numerical goals in Fiscal 2004, 2005 and Fiscal 2008, "K" LINE Vision 2008 final year)

(unit: billion Yen)	Actual results in Fiscal 2003	Targeted figures in Fiscal 2004	Targeted figures in Fiscal 2005
operating revenues	724.7	760.0	790.0
operating income	70.5	76.0	77.0
income before income taxes and extraordinary items	62.6	74.0	75.0
net income	33.2	46.0	47.0
ROE	32.7%	33%	26%
liabilities bearing interest	281.8	260.0	240.0
shareholders’equity	121.0	160.0	200.0
ratio of shareholders’ equity	21.6%	27%	33%
Debt Equity Ratio (on the basis of fair market value)	233% (88%)	162%	118%
investment in plant and equipment	53.8	73.0	88.0
scale of fleet	361	368	395

Targeted figures in Fiscal 2008
870.0
88.0
87.0
55.0
17%
260.0
340.0
43%
77%
135.0
461

Preconditions for achievement

	Fiscal 2003	Fiscal 2004	Fiscal 2005
Exchange rate	¥114	¥108	¥110
Fuel oil price (M/T)	$170	$170	$170

Fiscal
2008

¥110

$170

For more details, please contact:

Kawasaki Kisen Kaisha, Ltd.

Mamoru Shozui	Director, General Managing of Corporate Planning Group
	Tel: +81-3-3595-5030 Fax: +81-3-3595-5175

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