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Meeting Diverse Challenges with Integrated Strengths
Annual Report 2009For the fiscal year ended March 31, 2009
Profile
The Kajima Group is one of Japan’s largest general contractors. Established in 1840 and headquartered
in Tokyo, the Kajima Group has more than 15,000 employees serving customers in over 20 countries. For
the fiscal year ended March 31, 2009, consolidated revenues totaled ¥1,948.5 billion (US$19.9 billion).
Customer satisfaction is a priority. In our core building construction, civil engineering and real estate
development operations, we use our comprehensive capabilities in every area and phase of our business
activities to provide total solutions. Our broad technical expertise underpins our comprehensive
capabilities. We consistently develop innovative technologies that help us add value to our products and
earn customer satisfaction.
Committed to global corporate citizenship, we emphasize ethical operations, compliance and
corporate social responsibility in continually working to earn the trust and respect of all stakeholders.
Forward-Looking StatementsThis Annual Report includes forward-looking statements that represent Kajima’s assumptions and expectations in light of currently available information.These statements reflect industry trends, customer’s situations and other factors, and involve risks and uncertainties that may cause actual performanceresults to differ from those discussed in the forward-looking statements in accordance with changes in the domestic and overseas business environment.
Kajima Corporation Annual Report 2009 1
Financial Highlights(Consolidated and Non-Consolidated) 2
Message from the Management 3
Feature :Meeting Diverse Challenges with Integrated Strengths 5
Fundamental Stance on Corporate Governance 12
Board of Directors, Corporate Auditors and Executive Officers 14
Kajima at a Glance (Consolidated Basis) 16
Review of Operations
Domestic OperationsConstruction Business 18Real Estate Development Business 22Other Business 24
Overseas OperationsOverseas Construction &
Real Estate Development Business 28
Corporate Information 31
Principal Subsidiaries and Affiliates in Japan 31
Global Network 32
Corporate History 34
Corporate Organization 36
Contents
“As a group of individuals working together as one,
we pursue creative progress and development
founded on both rational, scientific principles and
a humanitarian outlook, through which we strive
to continually advance our business operations and
contribute to society.”
2 Kajima Corporation Annual Report 2009
Contract Awards
1,500
2,000
1,000
500
02005 2006 2007 2008 2009 2005 2006 2007 2008 2009
Revenues
2,000
1,500
1,000
500
0
Operating Income
50
40
30
20
0
10
60
Consolidated (Construction) Non-Consolidated
(Years ended March 31) (Years ended March 31)
2005 2006 2007 2008 2009(Years ended March 31)
Consolidated Non-Consolidated Consolidated Non-Consolidated
(Billions of yen) (Billions of yen) (Billions of yen)
Financial Highlights (Consolidated and Non-Consolidated)For the years ended March 31, 2009 and 2008
2009 2008 2009(Millions of Yen) (Thousands of U.S. Dollars)
Consolidated:Revenues ¥1,948,540 ¥1,894,045 $19,883,061Operating Income 19,696 18,097 200,980Net Income (Loss) (6,297) 40,709 (64,255)Total Assets 1,885,427 1,918,396 19,239,051Total Equity 239,046 305,450 2,439,245
Per Share: (Yen) (U.S. Dollars)
Basic Net Income (Loss) ¥(6.20) ¥39.13 $(0.063)Cash Dividends 6.00 7.00 0.061
(Millions of Yen) (Thousands of U.S. Dollars)
Non-Consolidated:Revenues ¥1,491,937 ¥1,423,144 $15,223,847Operating Income 9,362 4,643 95,531Net Income (Loss) (7,548) 5,871 (77,020)Total Assets 1,530,350 1,534,354 15,615,816Total Equity 215,946 265,026 2,203,531Contract Awards 1,387,640 1,463,688 14,159,592Total Contract Backlog 1,491,687 1,595,984 15,221,296
Per Share: (Yen) (U.S. Dollars)
Basic Net Income (Loss) ¥(7.40) ¥5.62 $(0.076)
Notes: 1. The U.S. dollar amounts included herein are presented solely for convenience of the reader. Such dollar amounts have been translated from yen at the approxi-mate exchange rate in Tokyo on March 31, 2009, of ¥98=U.S.$1. The translations should not be construed as representations that Japanese yen have been, could have been or could in the future be converted into U.S. dollars at that or any other rate.
2. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding for the fiscal years ended March 31, 2009 and 2008, respectively.
Message from the Management
Mitsuyoshi NakamuraPresident, Representative Director
Under its new Medium-Term Business
Plan, the Kajima Group aims to estab-
lish a stable earnings foundation that
can weather the volatile and changing
business environment by further
strengthening competitiveness and
profitability in our core businesses: civil
engineering, building construction and
real estate development.
Results for the Fiscal Year Ended March 31, 2009
The Japanese construction industry faced an even more chal-
lenging operating environment in the fiscal year ended March
31, 2009. In addition to worldwide volatility in material prices
and exchange rates, domestic construction demand continued to
decline, especially toward the end of the period in the private
sector.
The Kajima Group has carried out its three-year Medium-
Term Business Plan since the fiscal year ended March 2007,
with a strategic emphasis on deepening our core construction
business and enhancing our technological and sales capabilities.
However, the profitability of Kajima Corporation’s construction
business has deteriorated significantly due to dramatic changes
in the market structure, and we were unable to achieve the
plan’s targets.
Under these conditions, consolidated construction contract
awards decreased 5.5 percent to ¥1,585.4 billion, as a large
increase in government orders for civil engineering work was
offset by other factors, including a substantial decline in build-
ing construction at Kajima Corporation following the increase in
Kajima Corporation Annual Report 2009 3
4 Kajima Corporation Annual Report 2009
the previous year. Consolidated revenues rose 2.9 percent to
¥1,948.5 billion, mainly due to an increase in building construc-
tion work at the parent company.
Operating income rose 8.8 percent to ¥19.7 billion. It did
not rebound strongly mainly due to the downturn in real estate
markets overseas and continued stagnation of the gross profit
margin of Kajima Corporation's construction business. We
recorded consolidated net loss of ¥6.3 billion, compared to net
income of ¥40.7 billion in the previous fiscal year, due to a pro-
vision for doubtful accounts and valuation loss on marketable
and investment securities against the backdrop of credit con-
cerns and weak stock prices, and loss caused by inappropriate
transactions at a subsidiary.
Policies for the Fiscal Year Ending March 31, 2010
For the fiscal year ending March 31, 2010, there are concerns
that the global recession will be prolonged, and the Japanese
construction market will continue to face an unavoidable decline
in private-sector demand. Therefore, we expect the difficult
operating environment to continue.
In these conditions, we have launched a new Medium-Term
Business Plan in April 2009 for the three years ending March
2012 to establish a foundation for stable earnings that can
weather the volatile and changing business environment.
The aim of the plan is to lay robust foundations for becoming
a truly profitable enterprise by further strengthening the competi-
tiveness and profitability of our core businesses: civil engineering,
building construction and real estate development.
To maximize profits in each business, we will ensure closer
cooperation among sales, design, and construction units and
optimally allocate company resources. Measures to ensure rea-
sonable profitability will include improving technology-related
proposal capabilities, enhancing estimate and procurement func-
tions, and exercising prudence in obtaining new orders.
Furthermore, we aim to raise profitability with measures
ranging from rationalizing production, strengthening operational
and production-related units including subcontractors and ven-
dors to increasing the efficiency of administrative and overhead-
related units, beefing up production-support functions and under-
taking strategic research and technological development.
With these initiatives, we will steadily build up profits and
thereby increase equity as well as reduce interest-bearing debt.
With enhanced equity and less debt, we will have higher tolerance
for risks associated with real estate development and overseas
business.
Increasing Corporate Value
Our basic policy is to stably provide year-end dividends in
line with our earnings while securing internal reserves to main-
tain a sound business foundation.
Taking into account the Group’s financial performance and
business foundation, we reduced our annual dividends for the
fiscal year ended March 31, 2009 to ¥6.00 per share, a
decrease of ¥1.00 from the previous fiscal year.
The Kajima Group is committed to increasing its corporate
value by steadily executing the new Medium-Term Business
Plan, based on customer-oriented management and rigorous
compliance.
We will continue working to justify the steadfast support of
our stockholders and other stakeholders.
July 2009
Mitsuyoshi Nakamura
President, Representative Director
Message from the Management
Meeting Diverse Challenges with Integrated Strengths
Kajima Corporation Annual Report 2009 5
The global economic downturn and
turmoil in financial markets created a
challenging operating environment for
construction firms in Japan. Global volatility
in construction material prices and fluctuating
exchange rates also affected Japanese
contractors during fiscal 2008. Moreover,
factors such as the sharp decrease in
domestic demand for construction through
the fiscal year, especially near the end,
made the operating environment for
construction companies even more
difficult. Given these conditions, we
deployed our unique strengths — our
technological, proposal and comprehensive
capabilities — in responding to the
challenging operating environment by
working to improve profitability in our
core domestic construction business.
6 Kajima Corporation Annual Report 2009
In 2009, we mark our 170th year in business. In the
1950s, we were the first in Japan to construct a
concrete dam and a nuclear reactor building. We also
constructed Japan’s first skyscraper, the Kasumigaseki
Building, in 1969, during the period of rapid economic
growth. These are just some of the examples of our
leadership in Japan’s construction industry. Today, we
have a strong presence in numerous sectors including
building construction in urban redevelopment and
nuclear power plant
construction.
This presence is the result of
our ability to respond to the
emerging needs of society and
customers in new markets.
Since becoming the first
Japanese construction company
to establish a technical
research institute, we have
constantly invested in research
and technology development
that looks ahead to the next
generation. Thus, we have continuously created
technologies essential for Japan to develop with the
changing times. For example, we were first in the
world to develop response-controlled structures, and
have demonstrated leadership in areas including
ultra-high-rise building technology and the shield
tunnel method.
Now, to mark the 60th anniversary of its
establishment, we are reconstructing our technical
research institute. In April 2009, we finished construc-
tion of a new laboratory. The remaining construction is
scheduled for completion in the fiscal year ending
March 2012. When complete, it will be a world-class,
leading-edge research and development base for the
construction industry. In this and other ways, we are
making strategic investments in research and develop-
ment even in a challenging oper-
ating environment to strengthen
our ability to win contract
awards and achieve earnings
growth through
technological excellence.
Today, we must not only
respond to customers needs for
shorter construction periods and
lower prices. We must also
respond to social needs such as
ensuring a sustainable society by
reducing environmental burden.
Recent technologies we have developed that are
meeting the needs of society include the Kajima Cut &
Take Down (KC&D) Method for dismantling buildings.
Going forward, we will reinforce our base for
expanding earnings by constantly creating leading-
edge technologies that meet the evolving needs of
society.
Innovation and Quality Support Construction LeadershipKajima built Japan's first concrete dam, its first nuclear reactor building and its first skyscraper.
Today, we deploy our broad range of integrated capabilities to make technologically sophisticated
proposals that meet increasingly diverse and complex customer needs while contributing to the
sustainability of society and reducing environmental burden.
Feature: Meeting Diverse Challenges with Integrated Strengths
Our leading-edgetechnologies meet the
evolving needs ofsociety.
Kajima Corporation Annual Report 2009 7
The Kajima Cut & Take Down Method: The World’s First Building Demolition Technology that Contributes toEnvironmental Protection, Higher Efficiency and Enhanced Safety
In September 2008, we completed
the demolition of our former head office
buildings from the ground up using the
KC&D Method for the first time in the
world. Conventionally, the demolition of
high-rise buildings begins at the top floors
and involves problems such as dust and
noise. The KC&D Method, however,
quietly dismantles buildings from the
ground floor, which offers the following
advantages:
1. Environment: All demolition work takes
place in the building interior, thereby
avoiding rain, which renders building
interior materials unrecylclable.
Moreover, dismantling the building
floor by floor decreases the amount of
waste material at any given time, which
facilitates separation and sorting. Both
these factors increase the recycling
rate, which helps protect the environ-
ment.
2. Efficiency: Work takes place only on
the ground floor, which improves the
mobility of workers and heavy equip-
ment.
3. Safety: The KC&D Method greatly
reduces work on upper floors, which
further enhances the safety of workers.
This breakthrough technology has
attracted global attention and won many
awards.
Demand is growing in metropolitan
Tokyo and other major cities in Japan for
reconstruction and redevelopment of
ageing buildings constructed during the
1960-70s, a time of rapid economic
growth. We see significant potential in the
KC&D Method as an outstanding way to
protect the environment, increase safety
and lessen noise even for demolition work
in densely built areas in Tokyo.
Demolition Using the Kajima KC&D MethodSteps 2 through 5 below are repeated as demolition progresses.
2) Column cutting
Columns are cut away approximately 70cm at a time at the ground floor level.
3) Extending the jacks
The jacks are raised to fill the 70cm gap.
4) Lowering the jacks
The jacks are retracted to lower the building one floor to the ground floor level.
5) Floor demolition
The lowest floor is stripped clean and demolished.
Jacks installed on ground floor Core wallDemolition of the floors at ground floor level
1) Inserting the jacks
Steel-reinforced concrete core walls are constructed in the center of the building and jacks are installed under the columns.
March 2008 May 2008 August 2008
Watch a time-lapse video of the demolition process on our website.http://www.kajima.co.jp/news/info/kaitai/index.html
In Japan’s construction industry, one result of the
Bill for Ensuring the Quality of Public Works that took
effect in 2005 has been a shift in the mainstream
bidding method for public works from the cost
evaluation bidding format and selection of the
lowest-cost bid to the compre-
hensive evaluation bidding
format that considers techno-
logical capabilities and other
factors along with price.
For bidders with competitive
technological and proposal
capabilities, the comprehensive
evaluation bidding format
offers more attractive business
opportunities because it takes
technology, price and other
factors into account. We
demonstrated our competitiveness under the new
format by winning numerous contracts for public
works during fiscal 2008. For example, dam projects
won included Tokunoshima Dam, Yunishigawa Dam
and Tobetsu Dam. We also won contracts for the
Central Circular Shinagawa Route Shield Tunnel and
the Ohashi Junction of the Metropolitan Expressway in
Tokyo. We anticipate more opportunities to demon-
strate a bigger presence and achieve further growth in
this sector.
Our sophisticated technology proposal capabilities
are a result of our ability to fully
exercise our comprehensive
strengths by having the project
manager work closely with tech-
nical teams to accurately under-
stand customer needs. Our
strong presence in the public
sector attests to the sophistica-
tion of our comprehensive capa-
bilities.
In the currently unfavorable
operating environment, we will
fully deploy our technology and
proposal capabilities to take maximum advantage of
the comprehensive evaluation bidding format to
steadily win contracts in the public sector with appro-
priate prices. This is one of our most important mis-
sions, and a key to restoring the earnings of the
domestic construction business.
Comprehensive Capabilities WinPublic-Sector BidsThe project manager works closely with technical teams to maximize our ability to make
advanced technology proposals and demonstrate our integrated strengths. Our strong presence
in the public sector attests to the sophistication of our comprehensive capabilities.
8 Kajima Corporation Annual Report 2009
Sophisticated,comprehensive
capabilities supportour strength in the
public sector.
Tobetsu Dam: A Competition Won with a NewTechnology Proposal
Tobetsu Dam in Hokkaido is repre-
sentative of the high regard the public
sector has for our technology proposal
capabilities. Our proposal applied a new
technology, the Cemented Sand and
Gravel (CSG) Method,1 for the first time in
a bid for the main body of a dam (52
meters high, and a volume of 800 thou-
sand cubic meters). The technology
proposal for controlling the quality of the
CSG that will be the material for the main
body of the dam brought together our
experience and technologies. As a result,
we won the contract in competition with
six bidders.
The Metropolitan ExpresswayCentral Circular Shinagawa RouteShield Tunnel: Unique TechnologySecures a Contract
The Metropolitan Expressway Central
Circular Shinagawa Route Shield Tunnel
is an ultra-long, large-section under-
ground tunnel that exceeds 12 meters in
diameter. Eight kilometers in length, it is
unprecedented worldwide as a tunnel
constructed using a single shield
machine. With an innovative proposal
highlighting the application of the Relay
Bit Method2 and other technologies to
streamline construction, we were select-
ed as the contractor for this project.
Notes: 1. Cemented Sand and Gravel (CSG) Method: A method for building embankments pri-marily with CSG, which is made by addingwater and cement to sand and gravel thatis easily obtainable at the construction site.The CSG Method is expected to reducecosts and environmental loading.
2. Relay Bit Method: This technology eliminates the need forauxiliary methods for tasks such as soilimprovement and intermediate shaftinstallation when increasing length ofshield construction by enabling cutter bitreplacement from inside the shieldmachine. This serves to shorten theconstruction period and reduce costswhile improving safety.
Kajima Corporation Annual Report 2009 9
Feature: Meeting Diverse Challenges with Integrated Strengths
Our comprehensive capabilities in the construction
business are the result of on-site, engineering and
sales organizations working together. Yet this core
strength is not limited to a single business.
Comprehensive capabilities that transcend business
segments, such as those enabled by synergy between
the construction business and the real estate develop-
ment business, are another core strength.
Over more than 30 years, our real estate develop-
ment business has continuously
compiled a strong record of
achievements, and differenti-
ates us as the leading general
contractor-developer among
Japan’s general contractors. We
deploy the strengths of the real
estate development business
not only in development proj-
ects, but also as an effective
means to help win contracts in
the construction business.
A representative example is
ThinkPark Tower, the central component of the
ThinkPark large-scale redevelopment project in Tokyo.
Although we did not participate in the project as a
developer-owner, we provided various support services
to the owner of the development at the business
planning stage. The owner appreciated our expertise
in development and construction, and consequently
decided to choose us as the contractor for the project.
The real estate development business has supported
the acquisition of construction contracts for other
projects as well. These include the construction of
GranTokyo South Tower in the Tokyo Station Yaesu
Area Development Project, for which we were also
involved in development, and the concurrent construc-
tion of GranTokyo North Tower.
We are able to respond meticulously to diverse cus-
tomer needs as a single source
of a full menu of specialized
services spanning every phase of
development from business
planning, design and construc-
tion to property management.
The involvement of the real
estate development team from
the early stage of a proposal
increases the likelihood of win-
ning the construction contract,
while its effective cost and
schedule management capabili-
ties enhance project profitability.
In addition to the close cohesion between the con-
struction and real estate development teams, there
has recently been an increasing number of opportuni-
ties for our construction and engineering teams to
work closely together in making proposals.
Unique Capabilities as a General Contractor-Developer Create Opportunities
Kajima is unique as Japan’s only general contractor-developer. Our focus on generating synergies
that transcend business segments is demonstrated by the close cohesion between the construction
business and the real estate development business.
10 Kajima Corporation Annual Report 2009
We emphasizesynergies that
transcend businesssegments
Synergies Create Opportunitiesacross Businesses
Generating New Synergies:
A New Solid Formulation Plant for
Tohoku Nipro Pharmaceutical Corp.
Our construction and engineering
businesses have successfully developed
synergies that transcend business seg-
ments. Since the revised Pharmaceutical
Affairs Law went into effect in April 2005,
many large pharmaceutical companies
have consigned production of their pro-
prietary products to other companies.
Tohoku Nipro Pharmaceutical therefore
moved to expand its contract manufac-
turing capacity by planning the design of
a plant specifically for that business.
Our engineering division is a leading
professional organization involved in the
construction of pharmaceutical facilities.
Working in concert with the construction
division on business development, the
engineering division took the lead,
deploying skills including CGMP1-compli-
ant facility planning and proposals for
factory automation to raise productivity.
As a result, we won a comprehensive
contract for construction of the buildings
and production facilities.
After obtaining the contract, the engi-
neering division served as the point of
contact with the customer, which
enabled it to thoroughly understand the
customer’s needs. Moreover, concurrent
construction of the buildings and produc-
tion facilities and operational studies at
the early stages enabled us to meet the
client’s request for a short construction
period. In addition, we kept costs low by
rationalizing2 the construction of the
buildings and the production facilities
through means including changes in con-
struction categories3 and consolidated
ordering.
This project is an excellent case study
of our commitment to being a single
source for engineering and construction
solutions. Going forward, we will create
more projects that generate synergies.
Notes: 1. CGMP is the acronym for Current GoodManufacturing Practice. Each countryhas Good Manufacturing Practice (GMP)quality standards. CGMP standards arethose of the United States, and they arethe most rigorous.
2. Rationalizing means optimizing thescope of work and order allocationbetween construction and engineering.Kajima revised purchasing so that con-struction operations were not orderingitems that engineering could order atlower cost and vice versa.
3. Changes in construction categories basi-cally means changes in the scope ofwork of construction and engineering.
Feature: Meeting Diverse Challenges with Integrated Strengths
Kajima Corporation Annual Report 2009 11
Corporate Governance System
In June 2005, as a company under a corporate auditor system, we implemented an executive officer system to separate
the functions of management and supervision from execution, to strengthen these functions, and to enhance the efficiency
and speed of management. In addition, we maintained and upgraded our internal management system to prevent
violations of laws and regulations and other misconduct, as well as inappropriate and illegal accounting practices.
Corporate Management System for Supervis ion and Execution
In principle, the Board of Directors meets once a month to discuss and decide upon key issues involving basic manage-
ment policies, issues for which board resolutions are legally required, and other important management issues. In addition,
the Board of Directors supervises business execution and confirms the progress of management plans.
The Management Committee, consisting of directors, some of the corporate auditors and executive officers, deliberates
and reports on key management issues. The Joint Committee of Directors and Executive Officers, consisting of directors,
corporate auditors and executive officers, familiarizes participants with the resolutions and reports of the Board of Directors
and the Management Committee, while reporting on and evaluating the state of business execution.
The chairman of Kajima Corporation presides over the Board of Directors, while the president of Kajima Corporation
presides over the Management Committee and the Joint Committee of Directors and Executive Officers. This creates a
system under which the chairman is responsible for decision-making and supervision and the president is responsible for
overall business execution.
Audit System
The Board of Corporate Auditors consists of five corporate auditors, including three external auditors with legal and
accounting backgrounds. Each corporate auditor attends the Board of Directors’ meetings and other important meetings to
audit the propriety and suitability of business execution by directors. The external auditors have no vested interest in
Kajima other than attorney fees. The appointment of auditors with legal and accounting backgrounds strengthens the
auditing function.
The Audit Department handles internal audits independently of our in-house divisions and departments and audits the
propriety of accounting practices and business activities at Kajima and its affiliated companies. Independent auditors, with
no vested interest in Kajima, conduct impartial and unbiased audits. Corporate auditors, the Audit Department and
independent auditors cooperate closely in working to raise the effectiveness and efficiency of audits.
The Kajima Group “strives to continually advance its business operations and contribute to society”
under its management philosophy. Our objective is to earn the trust and regard of all stakeholders,
including stockholders, customers, business partners, local communities and employees.
Our fundamental stance on corporate governance is to ensure fair and transparent corporate conduct
by improving management supervision by corporate auditors, the Board of Directors and others;
enhancing our internal control system to manage risk and maintain accountability; and formulating
measures for strict compliance.
Fundamental Stance on Corporate Governance
12 Kajima Corporation Annual Report 2009
Kajima Corporation Annual Report 2009 13
Internal Control System to Ensure Appropriate Execution of Business
While assiduously promoting compliance and managing risks in conducting business in an appropriate and efficient
manner, we are working to enhance our internal management (internal control) system. For example, for the purpose of
implementing the Internal Control Reporting System with the aim of ensuring the reliability of financial accounting, we
have introduced the Kajima Group Code of Conduct, the Corporate Ethics Reporting System and other internal rules and
regulations. We have also established the Corporate Conduct Committee, Risk Management Committee and Internal
Control Evaluation Committee on Financial Reporting.
Information Disc losure
To promote communication with stakeholders, every year we publish the Kajima CSR Report, which covers a wide array
of information on the Group’s environmental and social activities. We also provide corporate information by updating our
website and publishing the Annual Report, various company brochures, and other materials.
Moreover, the IR Group in the Corporate Planning Department energetically conducts investor and public relations
activities that disclose timely and appropriate corporate information. In particular, the IR Group works to support highly
transparent corporate management by holding meetings with institutional investors and securities analysts on an individual
and group basis.
Stockholders’ Meeting
IndependentAuditors
Appointment/dismissal
Appointment/dismissalReporting
Auditing
Auditing
AuditingDirection/supervision
ReportingReporting
Direction
Auditing
Auditing Auditing
Appointment/dismissal Appointment/dismissal
Appointment/dismissal/supervision Corporate Auditors’
Office
Board of Corporate Auditors
Audit Department
Board of Directors
Management Committee(Deliberation of key issues, etc.)
Special Purpose Committees(Incl. Development Business Committee)
Representative Directors
Guidance/support, etc.Seeking advice/reporting, etc.
Internal Control EvaluationCommittee on Financial Reporting
Risk Management Committee
Corporate Conduct Committee
Branches, Divisions (Real Estate Development/Engineering), Group Companies
Joint Committee of Directors and Executive Officers
Executive Officers
Corporate Governance System
14 Kajima Corporation Annual Report 2009
Board of Directors, Corporate Auditors and Executive Officers(As of June 30, 2009)
BOARD OF DIRECTORS
Sadao Umeda
Chairman, Representative Director
Mitsuyoshi Nakamura
President, Representative Director*
Shoichi Kajima
Director,Senior Advisor
Naoki Atsumi
Representative Director,*Executive Vice President
Hiroshi Kaneko
Representative Director,*Executive Vice President
Seiichiro Tomioka
Director,*Senior Executive Officer
General Manager, International Division
Hiroshi Ishikawa
Director,*Senior Executive Officer
Responsible for sales and marketing
Kaoru Someya
Director,*Senior Executive Officer
General Manager, Treasury Division
Koichi Kajima
DirectorPresident,
Kajima Institute Publishing Co., Ltd.President,
Yaesu Book Center Co., Ltd.
Tamiharu Tashiro
Director,*Senior Executive Officer
General Manager, Civil EngineeringManagement Division
Overseeing Machinery and ElectricalEngineering Department
*These directors also serve as executive officers.
Kajima Corporation Annual Report 2009 15
CORPORATE AUDITORS
EXECUTIVE OFFICERS
Senior Executive Officers
Hiroaki HoshinoOverseeing Overseas Subsidiaries Management Division
Yasuo MorimitsuGeneral Manager, Kanto Branch
Teruaki MurataGeneral Manager, Business Development Division
Atsushi HattoriGeneral Manager, Tokyo Architectural ConstructionBranch
Teruaki YamaguchiGeneral Manager, Real Estate Development Division
Toshio YamamotoResponsible for research & technology development andarchitectural designOverseeing Intellectual Property and License Department
Takashi HinagoGeneral Manager, Sales and Marketing Division
Takaji MineoResponsible for civil engineering (D Runway, TokyoInternational Airport Project)
Seigo AkanumaGeneral Manager, Tohoku Branch
Toru KidoGeneral Manager, Kansai Branch
Managing Executive Officers
Susumu TsuchiyaSenior Supervisory Engineer at Civil EngineeringManagement Division
Jun OkazakiSenior Supervisory Engineer
Yukio HayashiResponsible for architectural design Overseeing Kobori Research Complex
Kimitsugu KudoGeneral Manager, Hokkaido Branch
Kenryo NagataDeputy General Manager, Tokyo ArchitecturalConstruction Branch
Toshio HasegawaResponsible for architectural design
Toru NaitoDeputy General Manager, Sales and Marketing Division
Yoshikazu OshimiGeneral Manager, Building ConstructionManagement Division
Shuhei MasunagaGeneral Manager, Kyushu Branch
Masanobu SumiyoshiGeneral Manager, Hokuriku Branch
Masaru OzakiGeneral Manager, Architectural Design Division
Masao OkaGeneral Manager, Engineering Division
Toshio MishibaGeneral Manager, Chugoku Branch
Masayasu KayanoGeneral Manager, Tokyo Civil Engineering Branch
Yutaka TakedaGeneral Manager, Administration and Human Resources Division,Overseeing Public Relations Office, Legal Department, IT Solutions Department and Center for Shared AdministrativeServices
Executive Officers
Takashi FukamiGeneral Manager, Nuclear Power Department
Fuminori OhtakeDeputy General Manager, Tokyo ArchitecturalConstruction Branch
Minoru IshidaResponsible for Algeria East-West MotorwayConstruction Project
Masatoshi UrashimaDeputy General Manager, Sales and Marketing Division
Kazuo KojimaDeputy General Manager, Architectural Design Division
Yoichi SumiDeputy General Manager, Real EstateDevelopment Division
Yoshiyuki UnoDeputy General Manager, International Division
Kiyokazu SaikiGeneral Manager, Chubu Branch
Hironobu TakanoDeputy General Manager, Treasury DivisionGeneral Manager, Accounting Department
Shuko YamauchiGeneral Manager, Corporate Planning DepartmentOverseeing Affiliated Business Department
Takaaki TsukadaGeneral Manager, Environmental Engineering Division
Toshiki KuriharaDeputy General Manager, Sales and Marketing Division
Susumu AndoGeneral Manager, Shikoku Branch
Hiroyoshi KoizumiPresident, Kajima Overseas Asia Pte Ltd.
Satoshi TogariDirector, Kajima Technical Research Institute
Toshio YamamotoGeneral Manager, Safety and Environmental AffairsDepartment
Tatsuo HagaDeputy General Manager, Tokyo ArchitecturalConstruction Branch
Haruo SakaiDeputy General Manager, Kansai Branch
Yuichiro TajimaGeneral Manager, Audit Department
Masayoshi UnoDeputy General Manager, Tokyo ArchitecturalConstruction Branch
Tsutomu MatsumotoDeputy General Manager, Sales and Marketing Division
Takao NomuraGeneral Manager, Yokohama Branch
Hiromasa AmanoDeputy General Manager, Building ConstructionManagement DivisionGeneral Manager, Planning Department
Kenichi SuzukiGeneral Manager, Civil Engineering Design Division
Keisuke KoshijimaPresident & CEO, Kajima U.S.A. Inc.
Katsumasa KawamotoDeputy General Manager, Kansai Branch
Hitoshi ItoDeputy General Manager, Tokyo ArchitecturalConstruction Branch
Takashi MommaTsuneo Fujii
Kinro NakamuraHiroshi Araki
Shigeru Kobori
16 Kajima Corporation Annual Report 2009
OverseasRevenues
88.1%
6.4%
5.5%
20.4%
Revenues and Operating IncomeShare of Revenues
(Billions of yen)
(Years ended March 31)
(Years ended March 31)
(Years ended March 31)
(Years ended March 31)
2,000
1,500
1,000
500
0
Revenues (left scale)Operating income (right scale)
2005 2006 2007 2008 2009
Revenues (left scale)Operating income (right scale)
Revenues (left scale)Operating income (right scale)
Overseas revenues
(Billions of yen)
240
180
120
60
02005 2006 2007 2008 2009
(Billions of yen)
120
90
60
30
02005 2006 2007 2008 2009
(Billions of yen)400
300
200
100
0
60
45
30
15
0
40
30
20
10
0
4
3
2
1
0
2005 2006 2007 2008 2009
ConstructionBusiness
Real Estate DevelopmentBusiness
OtherBusiness
Overseas Construction & Real Estate Development Business
Kajima at a Glance (Consolidated Basis)
Kajima Corporation Annual Report 2009 17
Overview Highlights of the Fiscal Year Ended March 31, 2009
■ The largest number of real estate development projects among Japanese generalcontractors
■ Primarily high-end office and condominium projects in metropolitan Tokyo
■ Fully exercises strengths as a general contractor with construction execution anddesign divisions
ARCHITECTURAL DESIGN■ Plays an essential role in winning design-build contracts with groups of architects
specializing in a variety of architecture
CIVIL ENGINEERING DESIGN■ Creates value in the civil engineering business through activities ranging from
marketing to maintenance, from design and planning to technology development
ENGINEERING■ Integrates technology and expertise to produce optimal systems for manufacturers
ENVIRONMENT■ Solution provider in recycling, remediation, waste disposal, renewable energy and
other environment-related fields
■ Our overseas activities consist of:
1) Building construction and real estate development by overseas subsidiaries
2) Civil engineering by Kajima Corporation
■ Actively engaged in both construction and real estate development business around the world
BUILDING CONSTRUCTION
■ A pioneer of super-high-rise office building construction in Japan
■ A broad track record of constructing factories, condominiums and other types of buildings in Japan and abroad
CIVIL ENGINEERING
■ The leading position in Japan’s civil engineering sector for more than a century
■ Constructs virtually all types of civil engineering projects with unrivalled technological expertise
■ Contributes to the development of areas where projects are located, both in Japanand abroad
The construction business environment remained challenging both in Japan
and overseas. Both revenues and operating income increased due to
substantial increase in construction in progress, but operating income margin
was marginally higher than in the previous fiscal year.
In the domestic construction market, our strong technological proposal
capabilities gave us a competitive advantage in the comprehensive evaluation
bidding format, and won more new contracts than forecast.
We aim to secure more attractive business opportunities and improve our
profit margin going forward.
The real estate market in Japan drastically deteriorated, which affected our
financial performance in this sector during the fiscal year ended March 31,
2009.
In this unpredictable environment, we are tightening our risk management for
new development projects and on-going projects to minimize risks that could
affect the financial viability of these projects.
Other business divisions are more important than ever because comprehensive
capabilities are key to remaining competitive in each business segment.
We will work to efficiently integrate different business divisions to deliver
superior value for every type of business and project.
A core objective is enhancing our global business base to achieve financial
targets by streamlining and enhancing organizational efficiency and
strengthening risk management.
Emphasizing sound operations, we are focusing on countries, regions and
types of business in which we have a competitive advantage to maintain a
strong project pipeline.
18 Kajima Corporation Annual Report 2009
Market Conditions
During the fiscal year ended March 31, 2009, the turmoil in
the financial and capital markets that originated in the U.S.
spread to Japan’s economy. Together with factors such as the rapid
appreciation of the yen, it has had a major impact on corporate
earnings and household spending. Consequently, building construc-
tion investment including housing construction is estimated to have
been about ¥27.5 trillion, a marginal decrease from the previous
fiscal year. The decline in capital expenditures has made the envi-
ronment for the construction industry even more challenging.
Performance
Despite these rapid changes in the market environment that
began during the fiscal year, our teams of experts in a range of
sectors continued to identify new projects. We brought together
our diverse expertise in areas from planning to after-sale service.
For example, we formed special teams of experts in a wide range
of sectors and employed marketing approaches capitalizing on
the comprehensive capabilities we are known for.
As a result, despite the deterioration of market conditions dur-
ing the fiscal year ended March 31, 2009, contract awards for
domestic building construction projects reached ¥913.2 billion,
which was essentially in line with our initial target. Revenues rose
7.0 percent to ¥1,003.7 billion, primarily due to the large amount
of new orders received in the previous fiscal year. Despite high
construction material costs, initiatives emphasizing profitabilitySankei Hall Breeze
Building Construction
Review of Operations
Domest ic Operat ions
ConstructionBusiness
Kajima's core construction business consists of building
construction and civil engineering. In a challenging
environment that is changing rapidly, we continue to
optimize our sophisticated technologies and compre-
hensive capabilities to win a stable flow of contracts
and execute them efficiently. This has been an impor-
tant factor supporting gross margin improvement in the
building construction business.
Kajima Corporation Annual Report 2009 19
paid off, and the gross profit margin recovered from 3.6 percent
to 4.4 percent.
Strategies and Initiatives
With GDP expected to continue shrinking, the outlook of the
Japanese economy remains challenging for the fiscal year ending
March 31, 2010. Coupled with increasingly sophisticated and
diverse customer needs, we anticipate that competition for con-
tracts will intensify further.
Given this outlook, we will continue to optimize our leading
technological and comprehensive capabilities to boost our core
domestic construction business and enhance profitability by
improving our gross profit margin.
We recognize that the application of the latest knowledge and
techniques is always the key to securing new business opportuni-
ties. Accordingly, we will differentiate ourselves from competitors
by proposing high-quality, high-value-added buildings, precisely
tailored to customer needs, with leading-edge technologies such as
environmentally sensitive design and advanced IT security systems.
Moreover, we aim to ensure a stable flow of contracts by mak-
ing the most of our comprehensive capabilities. We will assign
dedicated project teams with specialized expertise to a range of
key sectors, including medical-care facilities, high-tech production
facilities for electronic devices and other sophisticated products,
logistics facilities and commercial facilities.
Improving profitability is one of our most important missions.
We will use our advanced technical proposal capabilities in a
more effective and strategic manner to secure appropriate project
pricing. We will adapt rapidly to changes in the procurement envi-
ronment resulting from price fluctuations and increase production
efficiency with stronger production capabilities to raise the gross
profit margin.
Further, we will work to diversify our revenue sources by
becoming more actively involved in sectors such as PFI, engineer-
ing, renovation, and environment-related projects through closer
collaboration with related divisions.
SMARK Isesaki
Nagareyama Logistics Center
Hiroo Garden Forest
Market Conditions
In Japan, civil engineering investment in the public sector
recovered moderately during the fiscal year ended March 31,
2009, but the domestic civil engineering market continued to
contract overall with the unrelenting decrease in private-sector
spending.
Going forward, civil engineering investment in the private
sector is expected to contract further as a result of the rapid
deterioration of the Japanese economy. Furthermore, although
price competition is beginning to settle down due to various
anti-dumping measures, intense competition for projects is
expected to persist, and the business environment will remain
challenging.
Performance
Despite the severe operating environment, we secured more
new contracts in the public sector than we had targeted through
widespread integration of our technological capabilities and
other expertise to comply with the comprehensive evaluation
bidding format. As a result, domestic civil engineering contract
awards increased 29.7 percent from the previous year to ¥311.0
billion. Revenues rose 3.7 percent to ¥256.7 billion, with a
gross profit margin of about 7 percent.
In addition, in line with the emphasis on technological capa-
bilities in the comprehensive evaluation bidding format, which
has been adopted by nearly all central government offices and
ministries, we steadily promoted R&D and technology develop-
ment to enhance our ability to be a technology solutions
provider.
Strategies and Initiatives
In the near term, competition for projects is expected to
remain intense because domestic civil engineering investment is
likely to shrink further. However, the spread of the comprehen-
sive evaluation bidding format is benefiting us, since it stresses
technological proposal capabilities, an area in which we excel.
Accordingly, we will strive to compete particularly for
20 Kajima Corporation Annual Report 2009
Civil Engineering
Hanshin Namba Line
large-scale, mixed-use developments in which we can mobilize
company-wide functions to fully demonstrate our comprehensive
capabilities. Further, we will work to secure a high volume of
profitable projects through the comprehensive evaluation
bidding format by stepping up the development of new techno-
logies to enhance our technological proposal capabilities.
Kajima Corporation Annual Report 2009 21
Review of Operations
Isawa Dam Toho Gas LNG Tank No. 2
D Runway of the Tokyo International Airport
22 Kajima Corporation Annual Report 2009
Market Conditions
The domestic real estate business environment deteriorated rap-
idly as the credit crunch caused by the global financial crisis from
the second half of 2008 spread to the Japanese economy. The
national average appraised values of residential and commercial
land, which had risen for two consecutive years, decreased in
January 2009. In the condominium market, demand for new units
was restrained further by an increase in selling prices mainly reflect-
ing the rise in construction costs caused by inflated material prices.
Consequently, there was a substantial decline in the number of
units supplied for sale, indicating that the condominium market
had entered an adjustment phase. In the office leasing market,
a growing number of tenants have consolidated, concentrated or
reduced their office space, which has caused an increase in vacancy
rates in areas such as the five central wards of Tokyo. As average
asking rents have begun to drop, signs of market deterioration
have become apparent.
Performance*
During the fiscal year ended March 31, 2009, contract awards
in the real estate development business on a non-consolidated
basis increased 24.5 percent to ¥82.0 billion. However, primarily
reflecting the decline in large-scale sales, revenues decreased 43.9
percent to ¥75.4 billion while gross profit fell 15.1 percent to
¥16.1 billion.
* Results include the results for architectural design and others in the Other Business segment.
Real Estate Development
Domest ic Operat ions
Real EstateDevelopmentBusiness
Key strategies in the real estate development business
include meticulous risk management, selectivity in com-
mitting to new projects, enhanced sales and marketing,
and an asset portfolio structure that generates stable
earnings. We will add value to properties by deploying
advanced structural and environmental technologies
that precisely meet customer needs.
SUNAMO
Kajima Corporation Annual Report 2009 23
Review of Operations
Kaga Residence
Higashi-Nibancho Square
Akasaka 2-Chome Building
Despite the decline in revenues and gross profit, the earnings
achieved were above the targets set at the beginning of the fiscal
year, mainly due to the sale of SUNAMO, one of the largest
shopping centers in Tokyo, steady sales of units at Kaga Residence
(a condominium in Tokyo), and stable results of rental properties.
In a business environment where the medium-term outlook is
unclear, we tightened our risk management. For example, we
limited the location of new development projects to outstanding
districts in metropolitan areas. For ongoing projects, given the soft
real estate market, we moved forward the projects while compre-
hensively assessing the business viability at each phase of develop-
ment.
Strategies and Initiatives
Against the background of the economic downturn and uncer-
tainty regarding future trends, we are focusing on moving forward
steadily with projects in planning and development stages, while
aiming to form an asset portfolio that serves as a sustainable
source of revenues in the future. In addition, we will enhance the
value of our development properties by integrating our advanced
structural, environmental and other technologies and by planning
products carefully designed with customer needs in mind. In condo-
minium projects for sale, we will formulate precise sales strategies
to meet market conditions based on an accurate grasp of market
trends with the aim of generating steady sales. In rental office
building projects, we will work to raise asset value by improving
occupancy rates and further enhancing property management and
operation efficiency.
In creating new development business, we will maintain our
prudent approach by identifying risks to develop appropriate con-
trols. In addition, as a general contractor-developer, we intend to
expand the scope of our business opportunities from multiple per-
spectives. For example, by deploying our planning and proposal
capabilities and expertise in planning businesses and acquiring
development authorization, we aim to increase new opportunities
in the fee developer business while supporting Kajima construction
teams in winning construction contracts.
24 Kajima Corporation Annual Report 2009
Market Conditions and Performance
In the first half of the fiscal year ended March 31, 2009, we
won contracts for large-scale projects in a carryover from the robust
economy of the previous fiscal year. In the second half, however,
the economic downturn resulted in the suspension or postpone-
ment of many projects, particularly those for manufacturing
facilities and housing.
Despite this environment, proposals by our Architectural Design
Division utilizing the strong advantage of our unique technologies
were favorably received. As a result, the number of contract awards
for designing large-scale projects increased, primarily for office
buildings and corporate R&D facilities.
Architectural Design
Domest ic Operat ions
OtherBusiness The Other Business segment encompasses a broad array
of operations from architectural and civil engineering
design to engineering, environment, and other busi-
nesses. These businesses provide Kajima with the depth
and diversity required to enhance competitiveness and
effectively meet highly sophisticated customer needs.
In particular, we made a proposal and won a contract for a
CASBEE “S”-ranked environmental design* for Kyowa Hakko Kirin
Co., Ltd.’s Tokyo Research Park that preserved the existing trees
and blended with the neighboring environment. In addition, other
high-quality projects utilizing our technologies were completed
in the fiscal year ended March 31, 2009, including the Kaga
Residence, in which we were involved from development to design
and construction.
*An “S” ranking is the highest level of environmental performance under theJapanese Comprehensive Assessment System for Building Environmental Efficiency(CASBEE).
Strategies and Initiatives
With Japan’s economy showing signs of a prolonged slump,
we anticipate that securing new contracts will be even more
challenging. To adapt, we will not restrict ourselves to general
competitions, but instead plan to move even more rapidly to take
further advantage of the growing diversity of project types, such as
private finance initiative (PFI) and value engineering (VE) projects.
At the same time, we will reinforce our design and construction
capabilities to effectively manage quality, construction costs and
schedules, as well as maximize profits.
Moreover, we have a solid understanding of our responsibilities
toward society as specialists and our accountability to clients under
Japan’s revised Act on Architects and Building Engineers. We will
strive to earn the public’s enduring trust by ensuring quality and
contributing to a low-carbon society.
New Laboratory at Kajima Technical Research Institute
Review of Operations
Kajima Corporation Annual Report 2009 25
Market Conditions and Performance
Design-build projects have increased as the use of the compre-
hensive evaluation bidding format for civil engineering projects has
become more widespread. This has added to the importance of our
design teams for winning construction projects in the civil engineer-
ing business.
Our energetic efforts to accommodate the comprehensive evalu-
ation bidding format in supporting contract bids have yielded
results. Technical proposals including Super-RC Piers, which entail
the use of high-strength concrete and reinforcing bars to permit
slender piers, have earned client praise and played a key role in
winning construction contracts for four bridges including the
Sanagawa Bridge of the Central Nippon Expressway and the
Kawashimogawa Bridge of the West Nippon Expressway.
Successful technical proposals secured contracts for highway tun-
nels including an open-cut tunnel for the Hanshin Expressway,
Yamatogawa Route, Tokiwa Leg and a shield tunnel for the
Metropolitan Expressway, Central Circular Shinjuku Route, Ohashi
Junction.
The supportive role of civil engineering design teams for projects
in progress is also important. Completed construction projects for
which we handled the detailed design work included the water
intake/outflow channel for the main building and water intake/out-
flow facilities of the Chubu Electric Power Co., Inc.’s Shin-Nagoya
Civil Engineering Design
Thermal Power Station Group No. 8. Recognition of our techno-
logical capabilities has included the Japan Institute of Construction
Engineering’s Infrastructure Technology Development Award for
the Large-Diameter Curved Pipe Roof Method.
In our consulting business, the revision of safety guidelines for
nuclear power plants has created a strong market for earthquake
resistance evaluations. A major part of our civil engineering design
consulting business consists of such evaluations, and we expect
this trend to continue for at least the next one to two years. In
addition, we are receiving a steady amount of research and devel-
opment business related to the disposal of radioactive waste, an
area expected to yield large projects in the future.
Strategies and Initiatives
We are concentrating on trying to strengthen our capabilities
to respond to design-build contracts in anticipation of further
expansion of the comprehensive evaluation bidding format. In
addition to enhancing our proposal capabilities, we are focusing
on developing technologies that give us an advantage in the com-
prehensive evaluation bidding format.
Also, as the proportion of overseas projects has increased over
the past several years, we are sharpening our design capabilities for
overseas projects. For example, we are taking a more integrated
approach within our Group and working more closely with
consultants in Japan and overseas.
Market Conditions
Demand for engineering services has increased with the rising
average age of customer engineering personnel with plant con-
struction expertise and the trend toward outsourcing of non-core
customer operations. Our scope of operations has expanded steadi-
ly as a result.
However, during the fiscal year ended March 31, 2009, the
sharp deterioration of the economy caused domestic manufacturers
to reduce capital expenditures. A number of projects were post-
poned or canceled in industries such as chemicals, electronic
devices and logistics.
Engineering
Shin-Nagoya Thermal Power Station Group No. 8
26 Kajima Corporation Annual Report 2009
Performance
The pharmaceutical sector is a primary focus for our engineer-
ing business. We have gained a reputation as one of the best
pharmaceutical plant engineering firms in Japan, based on posi-
tive evaluations of the large-scale, state-of-the-art plants that our
engineering business has delivered in recent years.
As a result, existing and new customers increasingly request
our collaboration in projects from the business planning stage. We
have steadily won integrated engineering, procurement and con-
struction (EPC) contracts from large pharmaceutical manufacturers
and other clients for production, logistics and other facilities.
Moreover, we have been strengthening our chemical synthesis
plant engineering capabilities. This effort to expand the scope of
business has led to new contracts for active pharmaceutical ingre-
dient plants and other types of facilities in addition to the series
of formulation plants we have delivered.
Strategies and Initiatives
Going forward, one of our key target areas will be pharmaceu-
tical facilities, where we expect solid capital expenditures for
plant reorganizations following corporate mergers and expansion
of production facilities for generic drugs. We plan to step up
efforts to provide engineering proposals for high-performance
manufacturing facilities in sectors such as chemicals, biopharma-
ceuticals and electronic devices.
We are also focusing on the agribusiness sector, where we see
good future prospects. While continuing technological develop-
ment for plant factories, we will strengthen efforts to promptly
make marketing proposals at the business planning stage.
We will also energetically support Japanese manufacturers
who plan to establish overseas operations, primarily in China and
Southeast Asia.
We aim to strengthen customer relationships by offering more
value-added professional services from facilities design in the
upstream stages to maintenance and repair services at down-
stream operational stages, thus enhancing our service menu at all
stages of the facilities lifecycle.
No. 3 Preparation Building, Nitto Medic Co., Ltd.
Omuta New Main Factory, Kanto Chemical Co., Inc.
Kajima Corporation Annual Report 2009 27
Market Conditions and Performance
During the first half of fiscal 2008, we had numerous opportuni-
ties in our environment business to make technological proposals
and provide professional services for themes such as CO2 reduction
and biodiversity, which are closely related to societal needs. As a
result, we won contracts for construction and other services. In the
second half, the global recession caused a sharp drop in new con-
tracts. However, environmental problems are a key theme that
transcends the current adverse economic conditions, and societal
needs will remain a priority.
During the fiscal year ended March 31, 2009, we conducted a
variety of research through which we expect to explore new con-
struction business opportunities in the fiscal year ending March 31,
2010 and beyond.
In the soil remediation business, demands from the private sector
wavered due to the recession, causing new orders to weaken,
particularly in the second half.
We won a succession of new contracts for construction of large-
scale waste disposal facilities during the first half. Moreover, we
added to our experience in environment-conscious demolition and
surveyed wind conditions to determine the commercial viability of
wind-generated power. In addition, through close cooperation with
an affiliated company, we rendered the professional service of filing
applications for the approval of Japan’s Ministry of Land,
Infrastructure, Transport and Tourism with respect to confirmation
of earthquake resistance for a wind power plant.
In other areas, we promoted comprehensive environment and
energy proposals as total solutions for production environments.
Moreover, we directed projects in the areas of biodiversity con-
sulting, environmental assessment and carbon management.
Affirmation of the high regard for our capabilities in biodiversity
included the Grand Prize for the 18th Global Environment Award.
Strategies and Initiatives
We believe that the construction industry has an extremely
large role in solving environmental problems in the 21st century.
We were the first company in Japan’s construction industry to
formulate guidelines for biodiversity. The Kajima Ecosystem
Conservation Guidelines clarify our approach to ecosystems and
are reflected in technology development and actual construction.
Furthermore, we have demonstrated our leadership in the
construction industry in ways such as becoming corporate vice
chair of the Japan Business Initiative for Conservation and
Sustainable Use of Biodiversity (JBIB), a network of companies
that aim to preserve biodiversity, and signing a Leadership
Declaration of a Business and Biodiversity Initiative at the Ninth
Conference of the Parties to the Convention on Biological
Diversity (COP9). Kajima is the only general contractor to sign the
declaration.
In the fiscal year ending March 31, 2010, we will deploy our
full portfolio of environmental technologies and our network to
help win environment-related construction orders. We will also
enhance company-wide environmental management, energetical-
ly conduct environmental publicity activities, and concentrate on
creating and initiating new environment businesses with the aim
of demonstrating strength in environmental management.
Environment
Review of Operations
Hirogawa Myojinyama Wind Farm
Water Distribution Center North, Koshigaya-Matsubushi Waterworks Bureau
28 Kajima Corporation Annual Report 2009
Market Conditions and Performance
The business environment changed dramatically from fall 2008.
Around the world, construction investment dropped and real estate
markets deteriorated markedly as a result of the global economic
recession sparked by the financial crisis in the United States. The
situation was compounded by sharp fluctuations in foreign
exchange rates.
In this environment, new construction contract awards at over-
seas subsidiaries for the fiscal year ended March 31, 2009 totaled
¥162.5 billion. Total revenues decreased to ¥238.2 billion,
accounting for 12.2 percent of the Kajima Group’s consolidated
revenues, and net income declined to ¥3.3 billion.
In the United States, construction contract awards at Kajima
USA Inc. (KUSA) increased year on year, although numerous proj-
ects were either downsized, postponed or suspended due to the
rapid meltdown of the economy toward the end of the year. In
January 2008, Batson-Cook Company joined and brought in higher
construction revenues to KUSA. The business of Hawaiian Dredging
Construction Company, Inc., KUSA’s main source of earnings in the
construction sector for several years, was generally solid. However,
Building Construction andReal Estate Development(by overseas subsidiaries)
Overseas Operat ions
Overseas Construction &Real Estate DevelopmentBusiness
St. Regis Hotel & Residences, Singapore
Kajima Corporation Annual Report 2009 29
Sentosa Resort in Singapore. Construction work in progress, such
as the Marina Bay Financial Centre (MBFC), proceeded smoothly,
and the performance of other operating businesses was solid. Both
contributed to KOA’s financial results.
Contract awards declined at Chung-Lu Construction Co., Ltd. in
Taiwan due to the economic recession, but revenues were firm due
to steady progress on large-scale construction projects for Japanese
manufacturers such as AvanStrate Inc. as well as for local developers.
In China, Kajima (Shanghai) Construction Co., Ltd. was awarded
the contract to build Unicharm Corporation’s factory in Shanghai, an
opportunity it had been pursuing for more than a year. This project
is expected to generate revenues for Kajima Shanghai from 2009.
Strategies and Initiatives
In the fiscal year ending March 31, 2010, our overseas
subsidiaries will strive for solid results by stepping up management
activities to establish a business base capable of withstanding the
present global recession and achieving income targets. Amid
challenging economic conditions, each subsidiary will work to
maintain sound operations by streamlining and enhancing
organizational efficiency and strengthening risk management.
Review of Operations
after generating substantial income for KUSA on a consolidated
basis in prior years, the logistics facility and warehouse development
business of Industrial Developments International, Inc. posted lower
revenues and income due to the stagnant real estate market.
In Europe, the worsening economy caused a sharp drop in con-
tract awards, particularly in central Europe. Kajima Europe (KE),
however, managed to secure earnings through the sale of real
estate in the United Kingdom.
The Royal Alexandra Children’s Hospital, a PFI project devel-
oped by KE in Brighton, England, received the judging committee
chairman’s prize this year in the JAPAN PROJECT International
Awards established by Japan’s Ministry of Land, Infrastructure,
Transport and Tourism. The Project was comprehensively evaluated
and judged outstanding according to standards such as “local trust
earned by demonstrating superior expertise, technological skills and
project management capabilities” and “contribution to local eco-
nomic and social development by encouraging economic activity
and enhancing quality of life.”
In Asia, new contract awards at Kajima Overseas Asia Pte Ltd.
stayed at the same high level as in the previous year, with the
acquisition of a large-scale contract for the construction of the
The Royal Alexandra Children’s Hospital, UK
FedEx Express Mid-Atlantic Hub, USA
Liberec Plaza Center, the Czech Republic
30 Kajima Corporation Annual Report 2009
Dubai Rapid Link,UAE Sewage Treatment Plant Project, Malaysia
Review of Operations
Market Conditions
The global economic slowdown caused corporate earnings to
deteriorate in countries and regions around the world, resulting in
lower demand for construction and a slowdown in construction
investment. Consequently, competition for new projects became
more intense.
Construction in progress was impacted by persistently high con-
struction materials and other costs in some countries and regions.
These and other factors pressured earnings. Moreover, the rapid
appreciation of the yen during the fiscal year affected the results of
the civil engineering business.
Performance
Smaller construction investment budgets, high construction
costs, the appreciation of the yen and other factors made the oper-
ating environment increasingly challenging. We took a more rigor-
ous approach toward marketing for new projects and project man-
agement for construction projects in progress, implementing meas-
ures to strengthen management in every phase from contract
award to construction and post-construction maintenance.
Among these initiatives, at the East-West Motorway, Algeria,
and the Dubai Rapid Link, the United Arab Emirates, we focused on
accelerating the progress of work while maintaining the high
quality of construction, as these mega-sized projects have a major
impact on the financial performance of Kajima Corporation.
Strategies and Initiatives
The performance of International Division, which operates under
the direct control of Kajima Corporation, has become a significant
component of our overall financial results. In the fiscal year ended
March 31, 2009, as in the previous fiscal year, revenues were well
over ¥100.0 billion. Consequently, the division is strengthening
project management in line with its top priorities: steady progress
on projects that are under way and increased earnings. In par-
ticular, we are working to maximize earnings on the East-West
Motorway, Algeria, and the Dubai Rapid Link, the United Arab
Emirates, by making full use of our comprehensive capabilities,
including the provision of technological and personnel support.
For new contract awards, we are focusing on countries, regions
and types of business in which we have a competitive advantage,
including roads, bridges, subways and other projects in Southeast
Asia, Taiwan and elsewhere. At the same time, the division meticu-
lously examines project and contract details to win construction
business in which it can minimize risk.
Civil Engineering
The East-West Motorway, Algeria
Company NameKajima Corporation
Head Office3-1, Motoakasaka 1-chome, Minato-ku,Tokyo 107-8388, JapanTel: 81-3-5544-1111
Established 1840Incorporated 1930Paid-in Capital ¥81,447 millionNumber of Employees 8,705 (Consolidated: 15,608)
Common StockAuthorized: 2,500,000,000 sharesIssued: 1,057,312,022 shares
Number of Stockholders78,135
Transfer AgentThe Chuo Mitsui Trust and Banking Company, Limited
Independent AuditorsDeloitte Touche Tohmatsu
ListingsCommon stock is listed on the Tokyo, Osaka,and Nagoya stock exchanges.
Principal Subsidiaries and Affiliates in Japan(As of June 30, 2009)
Design & Consulting
Ilya Corporation
ARMO Co., Ltd.
ARTES Corporation
Engineering And Risk Services Corporation
RTC Inc.
Procurement & Construction
Taiko Trading Co., Ltd.
Chemical Grouting Co., Ltd.
Kajima Road Co., Ltd.
Japan Sea Works Co., Ltd.
Chuo Industries Co., Ltd.
Kajima Kress East Co., Ltd.
Kajima Mechatro Engineering Co., Ltd.
Kajima Aquatech Corporation
Kajima Kress West Co., Ltd.
Grout Trading Co., Ltd.
KRC Co., Ltd.
Clima-Teq Co., Ltd.
Real Estate Development & Management
Kajima Tatemono Sogo Kanri Co., Ltd.
Kajima Tokyo Development Corporation
East Real Estate Co., Ltd.
Kajima Tohoku Kousan Co., Ltd.
Kajima Yaesu Kaihatsu Co., Ltd.
Niigata Bandaijima Building Co., Ltd.
Finance & Insurance
Katabami Kogyo Co., Ltd.
Kajima Leasing Corporation
Sales & Services
Kajima Services Co., Ltd.
Creative Life Corporation
Environment Management Corporation
ACT TECHNICAL SUPPORT, Inc.
Plus Alpha, Ltd.
Toshi Kankyo Engineering Co., Ltd.
Public Relations Officer Corporation
Toyama Green Food Recycle, Inc.
Green Materials Recycle Corporation
Kajima Accounting Inc.
Kajima Real Estate Investment Advisors Inc.
Culture
Kajima Institute Publishing Co., Ltd.
Kajimavision Productions Co., Ltd.
Yaesu Book Center Co., Ltd.
Hotel & Leisure
Azuma Kanko Kaihatsu Co., Ltd.
Hotel Kajima no Mori Co., Ltd.
Kajima Resort Corporation
Atema Kogen Resort, Inc.
Nasu Resort Corporation
Shinrinkohen Golf Club Co., Ltd.
Kajima Karuizawa Resort, Inc.
Corporate Information(As of March 31, 2009)
Kajima Corporation Annual Report 2009 31
Kajima EuropeKajima U.S.A.
32 Kajima Corporation Annual Report 2009
District Offices, Kajima Corporation
• China District Office11-A, CITIC Building Tower A 19, Jianguomenwai Dajie, Beijing, 100004, ChinaTel 86-10-8526-1630 / 1636 Fax 86-10-8526-1831
• Taiwan District Office2nd Floor, No. 9, Lane 65, Chung Shan North Road, Section 2 Taipei, TaiwanTel 886-2-2541-0812 Fax 886-2-2523-5637
• Asian North Regional Office / Thailand District Office17th Floor, Ramaland Building, 952 Rama IV Road, Bangrak, Bangkok 10500, ThailandTel 66-2-632-8600 Fax 66-2-632-8603
• Philippine District Office12th Floor, Sky Plaza, 6788 Ayala Avenue, Makati City, Philippines 1226Tel 63-2-886-6818 Fax 63-2-886-6817
• Vietnam District OfficeThanglong Building Unit No. 203A, 2nd Floor, No. 105 Lang Ha Street, Hanoi, VietnamTel 84-4-3562-2748 Fax 84-4-3562-2738
• India District OfficeL-5/11, DLF City Phase-II, Gurgaon-122 002, Haryana, IndiaTel 91-124-436-3646 Fax 91-124-436-3649
• Sri Lanka District Office5, Sakvithi Lane, Colombo 5, Sri LankaTel 94-11-259-9391 Fax 94-11-258-3750
• Myanmar District Office53, University Avenue, Bahan Township, Yangon, MyanmarTel 95-1-503237 / 503238 Fax 95-1-503308
• Asian South Regional Office / Malaysia District OfficeUnit 32-01, 32nd Floor, Menara Promet, Jalan Sultan Ismail,50250 Kuala Lumpur, MalaysiaTel 60-3-2145-2526 Fax 60-3-2145-2786
• Singapore District Office80, Marine Parade Road, #14-01/03 Parkway Parade, Singapore 449269, SingaporeTel 65-6339-8890 Fax 65-6344-3777
• Indonesia District OfficeSentral Senayan 1, 17th Floor, Unit #117C, Jalan Asia Afrika No. 8,Jakarta 10270, IndonesiaTel 62-21-572-4480 Fax 62-21-572-4485
• Middle East Regional Office / Dubai District Office• Abu Dhabi District Office
Office No. 508, 5th Floor, Al Maidan Tower 1, Al Maktoum Road, Deira, Dubai,United Arab Emirates, P.O. Box 182841Tel 971-4-227-9191 Fax 971-4-227-3344
• Turkey District OfficeBalmumcu, Sakir Kesebir Sok, No. 32/10 80700 Besiktas, Istanbul, Turkey Tel 90-212-275-4620 Fax 90-212-275-4626
• Africa Regional Office / Egypt District Office3 El Mansour Mohamed Street, 4th Floor, Apt. No. 401 Zamalek, Cairo 11211, EgyptTel 20-2-2736-0935 Fax 20-2-2736-0948
• Tanzania District OfficePlot No. 100, Morogoro Road, Jangwani grounds near Magomeni Township,Dar es Salaam, TanzaniaTel 255-22-2170-438 Fax 255-22-2170-510
Principal Subsidiaries and Affiliates
NORTH AMERICA / HAWAIIU.S.A.• Kajima U.S.A. Inc.• Kajima Associates, Inc.
395 West Passaic Street, 3rd Floor, Rochelle Park, NJ 07662, USA Tel 1-201-518-2100 Fax 1-201-518-1539
• Kajima Building and Design, Inc.• KBD Construction Services, Inc.
3500 Piedmont Road, Suite 700, Atlanta, GA 35305, USATel 1-404-812-8600 Fax 1-404-812-8691
Global Network(As of June 30, 2009)
Kajima Corp.
Kajima Asia
Kajima Corporation Annual Report 2009 33
• KCS West, Inc.901 Corporate Center Drive, 3rd Floor, Monterey Park, CA 91754, USATel 1-323-269-0020 Fax 1-323-269-5912
• Hawaiian Dredging Construction Company, Inc.201 Merchant Street, 11th Floor, Honolulu, HI 96813, USATel 1-808-735-3211 Fax 1-808-735-7416
• The Austin Company6095 Parkland Boulevard, Cleveland, OH 44124, USATel 1-440-544-2600 Fax 1-440-544-2690
• Batson-Cook Company817 Fourth Avenue, West Point, GA 31833, USATel 1-706-643-2500 Fax 1-706-643-2199
• Industrial Developments International, Inc.Eleven Hundred Peachtree, 1100 Peachtree Street, Suite 1100, Atlanta, GA 30309, USATel 1-404-479-4000 Fax 1-404-479-4115
• Commercial Developments International, Inc.1251 Avenue of the Americas, Suite 910, New York, NY 10020, USATel 1-212-899-4570 Fax 1-212-899-4569
• Kajima Development Corporation901 Corporate Center Drive, Suite 104, Monterey Park, CA 91754, USATel 1-323-262-8484 Fax 1-323-262-8893
EUROPEU.K.• Kajima Europe Ltd.• Kajima Partnerships Ltd.• Kajima Properties (Europe) Ltd.
Grove House 248A, Marylebone Road, London, NW1 6JZ, UKTel 44-20-7465-0007 Fax 44-20-7465-8788
Fax 44-20-7465-8647
FRANCE• Kajima France Development S.A.R.L
10, Rue de la Paix, 75002 Paris, FranceTel 33-1-4261-2053 Fax 33-1-4260-3764
POLAND• Kajima Europe Design & Construction B.V., Poland Branch
Lim Center 12th Floor, Al. Jerozolimskie 65/79, 00-697 Warsaw, PolandTel 48-22-630-75-20 Fax 48-22-630-75-19
CZECH REPUBLIC• Kajima Europe Design & Construction B.V., Czech Branch
Palac Flora Building C 9th Floor, Vinohradska 151/2828, 130 00 Praha 3, Czech RepublicTel 420-255-742-455 Fax 420-255-742-499
ASIASINGAPORE• Kajima Overseas Asia Pte Ltd.
80 Marine Parade Road, #14-01/03 Parkway Parade, Singapore 449269, SingaporeTel 65-6344-0066 Fax 65-6344-3777
• Kajima Design Asia Pte Ltd.80 Marine Parade Road, #06-02/05 Parkway Parade, Singapore 449269, SingaporeTel 65-6334-1383 Fax 65-6334-1318
INDONESIA• P.T. Kajima Indonesia• P.T. Senayan Trikarya Sempana
Sentral Senayan 1, 17th Floor, Unit #117A, Jalan Asia Afrika No. 8, Jakarta 10270, Indonesia Tel 62-21-572-4477 Fax 62-21-572-4433
THAILAND• Thai Kajima Co., Ltd.• Ramaland Development Co., Ltd.
19th Floor, Ramaland Building, 952 Rama IV Road, Bangrak, Bangkok 10500, ThailandTel 66-2-632-9300 Fax 66-2-632-9312 / 9315 / 9317
MALAYSIA• Kajima (Malaysia) Sdn. Bhd.
16th Floor, Menara Promet, Jalan Sultan Ismail, 50250 Kuala Lumpur, MalaysiaTel 60-3-2141-4391 Fax 60-3-2142-0322
VIETNAM• Kajima Overseas Asia Pte Ltd., Vietnam District Office
10th Floor, Sacombank Tower, 266-268 Nam Ky Khoi Nghia Street, District 3, Ho Chi Minh City, VietnamTel 84-8-3848-2870 Fax 84-8-3848-2869
PHILIPPINES• Kajima Philippines Inc.
12th Floor, Sky Plaza, 6788 Ayala Avenue, Makati City, Philippines 1226Tel 63-2-886-6818 Fax 63-2-886-6817
HONG KONG• Kajima Overseas Asia Pte Ltd., Hong Kong District Office
Room 1905, 19th Floor, Allied Kajima Building, 138 Gloucester Road, Wanchai, Hong KongTel 852-2598-6767 Fax 852-2598-0696
TAIWAN• Chung-Lu Construction Co., Ltd.
2nd Floor, No. 9, Lane 65, Chung Shan North Road, Section 2 Taipei, TaiwanTel 886-2-2541-0812 Fax 886-2-2522-3092 / 2523-5637
CHINA • Kajima (Shanghai) Construction Co., Ltd.
2nd Floor, No. 1620, West Yan’an Road, Changning District, Shanghai, ChinaTel 86-21-5258-7766 Fax 86-21-5230-5686 / 5687
Baluchaung Hydroelectric Power Plant, former Burma
Karang-Kates Dams, Indonesia
Singapore Jurong Dock
Little Tokyo District Redevelopment, Los Angeles, USA
Asahan Sigura-gura Power Plant, Indonesia
International Trade Center, former East Germany
1800s
1900 - 1950
1950 - 1980
1980 - 1990
1990 - 2000
2000~
Sun Moon Lake Dam, Taiwan
Built railroads in Taiwan, Korea, etc.
Hotel Nikko Kuala Lumpur, Malaysia
Suez Canal Bridge, Egypt (Rehabilitation)
Millenia Singapore, Singapore
Hualalai Resort, Hawaii
88 Wood Street Office Bldg., London, UK
Senayan Square, Indonesia
Ambassador Hotel Hsinchu, Taiwan
AT&T Park, San Francisco, USA
Mubarak-Peace Bridge, Egypt
ITE Regional Campus, Singapore
Surabaya Airport, Indonesia
Treasure Palace (Condominium), Taiwan
Jeddah Royal State Palace, Saudi Arabia
Hotel Merkur Leipzig, former East Germany
Mazda Detroit Plant
Grand Hotel Berlin, former East Germany
El-Dikheila Steel Works, Egypt
Stockley Park, UK
34 Kajima Corporation Annual Report 2009
Japan
Iwakichi Kajima began carpentry business in Edo (1840)
Ei-Ichiban Kan
Yanagase Railroad
Ohmine Dam
Tanna Tunnel
No.1 Reactor, Japan Nuclear Power Research Center
Okutadami Dam
New Tanna Tunnel
Kasumigaseki Building
Nagawa Arch Dam, Azumi Power Plant
Supreme Court
Sumitomo Shinjuku Building, KDDI Building, Shinjuku Mitsui Building
Sunshine 60 Building
Tokyo East 21
Yebisu Garden Place
Kansai International Airport
Nagano Olympic Memorial Arena
Fuji Television Head Office
Tokyo Wan Aqua Line
Miyagase Dam
Akashi Kaikyo Bridge
Daikanyama AddressSaitama Stadium 2002Roppongi Hills Mori Tower
Akihabara Crossfield
Metropolitan Expressway, Central Circular Shinjuku Route, Yamate Tunnel
Toranomon Towers Residence & Office in Tokyo
The National Art CenterGranTokyo South TowerGranTokyo North Tower
Kokugikan Sumo Arena
Seikan Tunnel
Honshu-Shikoku Bridge
Overseas
Building construction Civil engineering Real estate development
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…⑨
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Corporate History~Major Construction and Real Estate Development Projects in Our 169-Year History~
Kajima Corporation Annual Report 2009 35
Ei-Ichiban Kan
Saitama Stadium 2002
Mubarak-Peace Bridge, Egypt
Akashi Kaikyo Bridge
Sumitomo Shinjuku Building, KDDI Building, Shinjuku Mitsui Building
Ohmine Dam
Millenia Singapore, Singapore
Roppongi Hills Mori TowerTreasure Palace (Condominium), Taiwan
Kasumigaseki Building
Nagano Olympic Memorial Arena
The National Art Center
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②
③
④
⑥
Hualalai Resort, Hawaii ⑨
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⑫
⑬
⑭ ⑮
Daikanyama Address ⑩
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Kokugikan Sumo Arena ⑤
36 Kajima Corporation Annual Report 2009
Stockholders’ Meeting
Board of Directors
President
Board of Corporate Auditors
Corporate Auditors’ Office
Executive Office Civil EngineeringManagement Division
Hokkaido Branch
Public Relations Office Business DevelopmentDivision
Tohoku Branch
Civil EngineeringDesign Division
Kanto Branch
Building ConstructionManagement Division
Tokyo Civil EngineeringBranch
Audit Department
Architectural Design Division
Tokyo ArchitecturalConstruction Branch
Legal Department
Sales and Marketing Division
Yokohama Branch
Safety and EnvironmentalAffairs Department
Nuclear Power Department
Hokuriku Branch
Corporate PlanningDepartment
Real Estate DevelopmentDivision
Chubu Branch
Administration and HumanResources Division
Engineering Division
Kansai Branch
Treasury Division
Environmental EngineeringDivision
Shikoku Branch
Affiliated BusinessDepartment
Machinery and ElectricalEngineering Department
Intellectual Property and License Department
Chugoku Branch
IT Solutions Department
Overseas SubsidiariesManagement Division
Kyushu Branch
Kajima Technical ResearchInstitute
Center for SharedAdministrative Services
Kobori Research Complex
International Division
Corporate Organization(As of March 31, 2009)
Printed in Japan