full Annual Report 2006 (PDF 3.2MB)

Overseas Building Construction & Real Estate DevelopmentMarket Conditions and BusinessPerformance: Kajima Group PerformsStrongly Overall1. Kajima U.S.A. Inc. (KUSA)KUSA manages the construction and realestate development business in NorthAmerica and Hawaii. It achieved recordhighearnings during the financial yearended March 31, 2006.The construction division was awardedcontracts totaling $0.8 billion for the entiregroup, with strong business activity inHawaii particularly notable. KUSAacquired the Austin Company, and isworking to enhance earnings and improveefficiency throughout the group.The real estate development businesscontinued to perform strongly, bolsteredby distribution warehouse projects.San Luis Obispo CountyGovernment CenterCalifornia, United Stateslocal government and developers. InThailand and Malaysia, earnings arebeing boosted with the reemergence ofJapanese manufacturers.The real estate development business isrecording strong earnings from leasingand management of office buildings,hotels, shopping malls and otherproperties, and has begun consideringnew investments.4. Chung-Lu Sino-Kajima ConstructionCo., Ltd. (Sino-Kajima)Sino-Kajima manages the constructionbusiness in Taiwan.Sino-Kajima undertook numerous projectsfor buildings, such as high-rise condominiumswith advanced seismic control technology,as well as production facilities forelectronic devices and other equipment.Review of OperationsOverseas Operations212. Kajima Kona Holdings, Inc. (KKH)The Hualalai Resort, with the FourSeasons Hotel as the core, has maintaineda reputation as one of Hawaii’sleading resorts. With the particularly strongperformance in the residential developmentsegment, KKH achieved record-highearnings during the financial year endedMarch 31, 2006. Following the successfulperformance, we entered into an agreementwith an investor in March 2006 andsold the hotel and golf operation business,housing business, and fixed assets inJune 2006.3. Kajima Overseas Asia Pte Ltd (KOA)KOA manages the construction andreal estate development business inSoutheast Asia.KOA’s construction business in Singaporecontinued to receive contracts forlarge-scale construction projects fromHung Sheng Tiipao CondominiumTaipei, TaiwanJVC Business Park London, UK5. Kajima Europe B.V. (KE)KE manages the construction and realestate development business in Europe.The construction business, once focusedon the United Kingdom, has been restructuredby concentrating on completingongoing construction projects in theUnited Kingdom, and expanding businessin Poland and the Czech Republic.The real estate development businesscontinues to focus on private financeinitiative (PFI) projects, office buildingsin the United Kingdom, and resortdevelopment in France.6. Kajima (Shanghai) Construction Co.,Ltd. (Kajima Shanghai)Kajima Shanghai manages the constructionbusiness in and around Shanghai,focusing on construction of productionplants for Japanese manufacturers.