Contents. No Autumn. OCEAN BREEZE No.175. News Roundup

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1 1 Contents No Autumn News Roundup Delivery of the Hawaiian Highway, a 7,500-vehicle Car Carrier... P1 Five 14,000-TEU Containerships Series Marks the Completion of MUNCHEN BRIDGE and MACKINAC BRIDGE... P2 Conclusion of the Long-Term Time Charter Contract for Two Newly Built LNG Ships for the BP Group... P4 K Line Receives Awards for Vessel Speed Reduction at the Port of Los Angeles and the Port of Long Beach in the United States... P6 K Line Provides Free Transportation in Cooperation with a Tourism and Food Promotional Event Jointly Organized by Six Tohoku Cities in the United States... P7

2 1 Delivery of the Hawaiian Highway, a 7,500-vehicle Car Carrier On July 17, 2015, construction of the Hawaiian Highway, a 7,500-vehicle car carrier at the Onishi Shipyard of Shin Kurushima Dockyard Co., Ltd., was completed Planning and Coordination Team, Car Carrier Planning & Development Group Due to the effects of Typhoon No. 11, the naming and delivery ceremony that was planned to be held at Onishi Shipyard was rather quickly changed to Tokyo. The launch of the vessel was celebrated in the presence of a number of attendees, including a Director of Hitachi, Ltd., President of Hitachi Transportation Systems, Ltd., Kentaro Masai, Managing Director Aoki, of NEC Capital Solutions Limited who was representing Ambitious Asset Management, the ship s owner, Director Yamaguchi of Sumitomo Corporation, Senior Managing Director Soga of Shin Kurushima Dockyard Co., Ltd., and Senior Managing Executive Officer Aoki of K Line and his wife. Launching of Hawaiian Highway is an especially memorable event as she is the first ship in the new 7500-veicle series, the largest vessel type in K Line s car carrier fleet. Having received the honor in her maiden voyage of carrying the first shipment of railway cars for Intercity Express Railways in the United Kingdom, which were manufactured by Hitachi, Ltd., her future outlook certainly appears to be promising. Taking this opportunity, K Line would like to express its gratitude to the relevant parties for their extensive cooperation in completing the construction of the vessel.

3 2 Five 14,000-TEU Containerships Series Marks the Completion of MUNCHEN BRIDGE and MACKINAC BRIDGE Asset Management Team, Containerships Strategic Group Of all the 14,000-TEU containerships with names starting with the letter M, the third ship in the 5-ship series, the Munchen Bridge, and the fourth ship, the Mackinac Bridge, were safely completed at the Hiroshima Shipyard of Imabari Shipbuilding Co., Ltd. on July 13 and August 24, respectively. In the same manner as the first and second ships that were constructed, the Munchen Bridge is a chartered ship from SHOEI KISEN KAISHA, LTD. At its naming ceremony, its name was announced by Chairman Sumihiro of Hiroshima Bank Ltd. and the Champagne cord was cut by the wife of the Executive Officer Kido of K Line. Munchen or Munich, the name of the ship, is known as a main city in south Germany where the headquarters of global companies, including BMW, an auto manufacturer, SIEMENS, an engineering company, and MAN SE, a track and bus manufacturer, are located. As it was for the first ship, the Millau (France), and the second ship, the Manchester (the United Kingdom), the names of the ships are suitable for their routes to Europe. The naming ceremony of the Mackinac Bridge was held on a fine day with the main guests in attendance being, President Yanagi of the Development Bank of Japan and his wife and President Asada of Century Tokyo Leasing Corporation, plus a number of other guests. With the announcement of the ship s name by President Yanagi and the Champagne cord cut by his wife, construction of the Mackinac

4 3 Bridge was safely completed. The Mackinac Bridge, a second generation to have this name, is the first newly constructed containership under the management of K Line that has been registered in Japan in 22 years. The ceremony was also privileged to have attend parties from the Maritime Bureau and the Chugoku Transport & Tourism Bureau of the Ministry of Land, Infrastructure, Transport and Tourism. Deputy Director-General Wakabayashi of the Ministry of Land, Infrastructure, Transport and Tourism delivered a congratulatory address at the celebration party. As the previous-generation Mackinac Bridge was also a Japanese registered 2,800 TEU containership built in 1986, the completion of the new-generation ship has meant the revival of traditional ship naming within the Japanese registration system. The Mackinac Bridge was constructed in a shipyard in Japan by adopting a variety of Japanese advanced technologies and clearly shows its genuine Japanese identity with its name in Hiragana Japanese characters and its home port, Kobe, in Chinese characters presented on its body, as well as the hoisting up of the Hinomaru (rising sun) flag. Approximately 30 years after the construction of the previous-generation ship, the Mackinac Bridge, with approximately five times loading capacity compared with the previous one, is going to play a core role in K Line s container services as the flagship of the K Line s container fleet for a long time into the future. K Line wishes for the safe voyage of the Munchen Bridge and Mackinac Bridge and would like to take this opportunity to express its sincere appreciation to all relevant parties for their support.

5 4 Conclusion of the Long-Term Time Charter Contract for Two Newly Built LNG Ships for the BP Group K Line LNG Shipping (UK) Limited K Line LNG Shipping (UK) Limited (hereinafter referred to as KLNG ), a K Line subsidiary in the United Kingdom, concluded a long-term time charter contract with the BP Group (hereinafter referred to as BP ) for two newly built LNG ships (hereinafter referred to as the Ships ) that are jointly owned with Chandris (Hellas) Inc.* 1 and DVB Bank* 2. Under the management of KLNG, the Ships are expected to take a part in transportation trips of LNG that are produced by the Freeport LNG Project, Texas, the United States, that are developed by BP. Since 2005, through the chartering of the Dewa-Maru and the Tangguh Project in Indonesia, to contribute to BP s LNG business, the K Line Group has been taking the initiative to manage safe ship operations and offer steady From the front row on the left; Senior Executive Managing Officer Aoki of K Line, Mr. Dave Grimshaw of BP Shipping, Ms. Natalie Costello of BP Shipping, Mr. Jonathan Shepard of BP Gas Marketing, Mr. Michael Chandris of Chandris and President Goto of KLNG transportation services. The Celestine River that is owned and managed by KLNG has been continually charted by BP for the medium-term to date. BP is a key customer for KLNG whose operations are based in London and KLNG s staff members have been firmly united in pursuing the latest new ship-building project for about the last two years. Including the two subject newly built ships and one newly built ship for Mitsui & Co., Ltd., which was announced recently, KLNG expects to manage 11 ships, including three ships that it owns, in the future. *1 A Greek ship owner that mainly focuses on tankers and bulkers *2 A bank that is a subsidiary of the DZ Bank Group in Germany, specialized in financing for transportation operators

6 5 These Ships are being built by Daewoo Shipbuilding & Marine Engineering Co., Ltd. in South Korea are expected to be completed in They will be equipped with low speed dual-fuel diesel engines (ME-GI) that have low environmental impact. The completion of the Ships means that this will be the first time for the K Line Group to have ships equipped with such engines. By putting into use cutting edge technologies of the new advanced ships, the Group is committed to achieving the enhancement of its corporate value and customer service. On July 10, 2015, K Line held a signing ceremony for the contract with BP, the charterer, and the joint ship owners. At a Japanese style luncheon that was held after the ceremony, participants enjoyed friendly conversation in a pleasant atmosphere while celebrating the launch of the new project. Celebration with the joint ship owners To respond to the increasing global needs for LNG transportation, KLNG will continue to strive to take measures to provide improved transportation services by carrying out high quality ship management that is closely integrated for each operating region in the future. [Outline of the contract] Charterer BP Group Shipbuilder Daewoo Shipbuilding & Marine Engineering Co., Ltd. Completion 2018 Tank capacity 173,400m3 Engine Low speed dual-fuel diesel engine (ME-GI) Ship owners Hull No. 2460: Artemis Gas 1 Shipping Inc. Hull No. 2464: Danae Gas Shipping Inc. Ship Management Company K Line LNG Shipping (UK) Limited Signing ceremony

7 6 K Line Receives Awards for Vessel Speed Reduction at the Port of Los Angeles and the Port of Long Beach in the United States Environment Management Group In the vessel speed reduction program, port authorities of both the Port of Los Angeles and the Port of Long Beach in the United States gave awards to shipping companies that achieved a high implementation rate of vessel speed reduction during the year A total of 170 K Line ships making 323 navigations in the marine area subject to the programs, a marine area within 40 miles (approximately 74km) from the shores of both ports, carried out slow-speed navigation during the year Consequently, both port authorities judged K Line to be a company that has achieved a high rate of vessel speed reduction, and K Line received awards again this year from each port authority. The waters around the two ports is an area where a large number of ships sail. In response, vessel speed reduction programs in the area have been adopted to control carbon dioxide (CO2) and other greenhouse gases and sulfur oxide (SOx) and particulate matter (PM) contained in emissions from ships to prevent air pollution along the coast. Under these programs, shipping companies whose ships enter the two ports are requested to cooperate to voluntarily reduce the speeds of their ships to 12 knots or slower when sailing in the surrounding marine areas. With the latest receipt of the awards, K Line has received the award in the Vessel Speed Reduction Program, a program managed by the Port of Los Angeles, for the seventh consecutive year since 2008 when the program was launched; and it received the award in the Green Flag Program, a program managed by the Port of Long Beach, for the tenth consecutive year. K Line clearly understands that the receipt of these awards truly resulted from an enthusiastic commitment to environmental preservation by the crew members of all the ships and other related parties. K Line would like to take this opportunity to express its gratitude to all the parties concerned. K Line would appreciate being able to continue to count on their support and understanding in the future, as it carries out initiatives to protect the global environment and hopefully continue to receive the awards year after year.

8 7 K Line Provides Free Transportation in Cooperation with a Tourism and Food Promotional Event Jointly Organized by Six Tohoku Cities in the United States CSR Planning & Development Division, General Affairs Group In cooperation with six prefectural capital cities in the Tohoku region of Japan, K Line provided free transportation of festival decorations used in a tourism and food promotional event that was held in Los Angeles, California in the United States. The event was organized through the cooperation of Tohoku cities to promote restoration of the region following the Great East Japan Earthquake by inviting overseas visitors and expanding the sales channels of regional products. K Line participated in the event by providing free transportation as part of its efforts to support the restoration of the disaster hit areas. The festival decorations that K Line transported were used in the 75th Annual Nisei Week Japanese Festival in Little Tokyo in Los Angeles on August 15 and 16, and in the 2nd Rising Tohoku Food Fair in LA in Torrance, Los Angeles on August 20 through 23. The events were managed by the six cities in the Tohoku region in a fully integrated manner, and a large number of people attended them. It is believed that they successfully promoted restoration of the Tohoku region by finding additional overseas sales channels. K Line is resolved to continue making contributions in any way possible to help with restoration of the areas hit by the Great East Japan Earthquake by offering transportation support, dispatching volunteer workers and taking other initiatives. Event announcement poster K Line also transported costumes of promotional characters depicted in this poster. Scene from the festival where the decorations were used