full Annual Report 2006 (PDF 3.2MB)

is responding with an expansion of applicationsfor the Parallel Frame SeismicReinforcement Method for external seismicretrofitting, the Water Screen Fire DisasterPrevention System, transparent magneticresonance imaging (MRI) rooms, as well asa host of construction technologies.in particular on winning contracts for R&Dfacilities related to the life sciences, anarea that is expected to grow significantlyin the future, and take proactive measureswith regard to facilities related to theagribio business, and the project and constructionmanagement businesses.Review of OperationsOther BusinessLarge-scale logistics centers have expandedfrom the Tokyo area nationwide withthe rise of investment funds and growth inInternet-related business. Commercialfacilities are also becoming larger and integrated,while large-scale retailers andlogistic centers, faced with fierce pricecompetition, demand lower costs for existinglevels of quality. The Company isresponding to these needs with technologiesthat integrate procurement and constructionmethods, such as the newlydeveloped, non-fabricated steel frame(HeCT) method.Engineering BusinessMarket Conditions and BusinessPerformance: Kajima Exceeds ItsTargetsThe value of contracts awarded in theengineering business reached ¥73 billion,significantly exceeding targets once again,and contributing strongly to earnings.Contracts in this business are mainly forthe design and construction of productionfacilities, and optimal systems for productionand distribution. The main reasons forthe rise were increases in construction oflarge-scale pharmaceutical productionfacilities.Strategies for GrowthKajima is making effective investments ofmanagement resources in engineering, afield where it can fully capitalize on its collectiveability in project planning, technologicalcapabilities and other areas. We will focusPharmaceutical manufacturingprocessToyama Green Food Recycle, Inc.’s“Metakles” facilityEnvironmental BusinessMarket Conditions and BusinessPerformance: Growth in Constructionof Remediation and FermentationFacilitiesAs a relatively new field, the environmentrelatedmarket cuts across industries andbusiness sectors, and competition isfierce. Nevertheless, Kajima was awardedcontracts totaling ¥47 billion, far exceedinginitial targets. The main areas ofgrowth were construction of remediationfacilities to clean contaminated soil, andcomprehensive contracts for “METAKLES”methane fermentation facilities, and windgeneratedpower installations. At the sametime, maturing markets have led to a gradualdecline in orders for rural communitysewerage and waste disposal facilities.Strategies for GrowthKajima will concentrate on the four areasthat generate the most order volume(waste disposal and recycling, soil remediation,water treatment, and renewableenergy sources) while remaining sensitiveto market trends and continuing to pursuethe development of unique technologies.We will also focus on diversifying revenuesources by developing in such areas asenvironmental surveys and consulting,water supply and sewerage systems, PFIsfor waste material, and the clean developmentmechanism (CDM) business.19