For the ﬁscal year ended March 31, 2009 Meeting ... - Kajima · The Kajima Group is one of Japan’s largest general contractors.Established in 1840 and headquartered in Tokyo,the

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



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


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.


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.


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.


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.



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.


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.



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



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


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


Responsible for sales and marketing

Kaoru Someya


General Manager, Treasury Division

Koichi Kajima

DirectorPresident,

Kajima Institute Publishing Co., Ltd.President,

Yaesu Book Center Co., Ltd.

Tamiharu Tashiro


General Manager, Civil EngineeringManagement Division

Overseeing Machinery and ElectricalEngineering Department

*These directors also serve as executive officers.


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


OverseasRevenues

88.1%

6.4%

5.5%

20.4%

Revenues and Operating IncomeShare of Revenues

(Billions of yen)

(Years ended March 31)




2,000

1,500

1,000

500

0

Revenues (left scale)Operating income (right scale)

2005 2006 2007 2008 2009



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)


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.


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


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.


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.


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


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.



Isawa Dam Toho Gas LNG Tank No. 2

D Runway of the Tokyo International Airport


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


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



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.


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.


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


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).


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




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.


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


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.


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.



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.


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


Hirogawa Myojinyama Wind Farm

Water Distribution Center North, Koshigaya-Matsubushi Waterworks Bureau



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


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.


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.


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


Dubai Rapid Link,UAE Sewage Treatment Plant Project, Malaysia


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.


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 EuropeKajima U.S.A.


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


• 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


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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Corporate History~Major Construction and Real Estate Development Projects in Our 169-Year History~


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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Hualalai Resort, Hawaii ⑨

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Daikanyama Address ⑩

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Kokugikan Sumo Arena ⑤


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

Documents

For the ﬁscal year ended March 31, 2009 Meeting ... - Kajima · The Kajima Group is one of Japan’s largest general contractors.Established in 1840 and headquartered in Tokyo,the